Waste Management, Inc. stock research
FY2026 Q1
Waste Management (WM) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased from the previous quarter but increased compared to a year ago. Gross profit moved in line with revenue changes, while cost of revenue was flat sequentially and higher year over year, resulting in gross margin weakening from the prior quarter but strengthening from the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased from the previous quarter but increased compared to a year ago. Gross profit moved in line with revenue changes, while cost of revenue was flat sequentially and higher year over year, resulting in gross margin weakening from the prior quarter but strengthening from the same quarter last year.
- Revenue and cost of revenue moved proportionally, with gross margin declining slightly from the prior quarter yet improving from the prior year. The sequential decline in gross profit reflects a larger relative decrease in revenue compared to the change in cost of revenue.
- Compared with the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.7%
Gross profit
$2.5B
Revenue
$6.2B
Cost of revenue
$3.7B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $6.4B | $2.6B | $3.8B | 40.3% |
| Sep 30, 2025 | $6.4B | $2.6B | $3.8B | 40.5% |
| Dec 31, 2025 | $6.3B | $2.6B | $3.7B | 41.5% |
| Mar 31, 2026 | $6.2B | $2.5B | $3.7B | 40.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.8 pts
Year-over-year change
Mar 31, 2025
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue and cost of revenue moved proportionally, with gross margin declining slightly from the prior quarter yet improving from the prior year. The sequential decline in gross profit reflects a larger relative decrease in revenue compared to the change in cost of revenue.
Compared with the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as it remained unchanged from the prior quarter while revenue declined.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Waste Management, Inc. (WM) | 40.7% |