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Warner Music Group (WMG)
NASDAQ:WMG
Earnings Data
Report Date
May 12, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.27Last Year’s EPS
0.12Same Quarter Last Year
Strong Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple strong operating and financial beats: mid-to-high single-digit revenue growth, double-digit adjusted OIBDA growth, ~310 bps margin expansion to ~25%, robust operating cash flow growth and market share gains. Management also highlighted strategic progress: early AI partnerships, a larger Bain JV for catalog M&A, and cost-savings contributing to margin improvement. Challenges were limited but notable — an 11% physical sales decline, Asia underperformance requiring leadership changes and execution risk tied to future AI monetization and M&A deployment. Overall, the positives (clear revenue and margin acceleration, cash generation, market-share momentum and strategic initiatives) materially outweighed the negatives.Company Guidance
Revenue Growth
Total revenue increased 7% year-over-year (constant currency), driven by strength across Recorded Music and Music Publishing.
Subscription Streaming Acceleration
Recorded music subscription streaming grew 11% (9% when adjusted for notable items), with ad-supported streaming up 4%.
Strong Profitability and Margin Expansion
Adjusted OIBDA rose 22% year-over-year and adjusted OIBDA margin expanded by ~310 basis points to about 25% in Q1.
Operating Cash Flow and Balance Sheet Strength
Operating cash flow grew 33% year-over-year with conversion of nearly 100% of adjusted OIBDA in the quarter; cash balance increased by over $200 million sequentially to $751 million.
Market Share Gains
U.S. streaming market share improved by ~1 percentage point year-over-year and market share on Spotify's Top 200 chart rose 3 percentage points fiscal year-to-date.
Publishing Momentum
Music Publishing reported 9% revenue growth (15% when adjusting for prior-year MLC match royalties), with double-digit growth across performance, mechanical, sync and streaming.
Catalog Monetization via Sync
High-impact sync placements drove major streaming uplifts (Prince's 'Purple Rain' weekly streams rose >600% YoY and settled at a new baseline ~6x higher; David Bowie streams rose >300% YoY with a ~2.5x new baseline).
Artist Success and Release Slate
Multiple chart-topping releases (Zach Bryan #1 Billboard 200; Bruno Mars single #1 on Billboard Hot 100 and Spotify U.S. & global) and a strong upcoming release slate including Bruno Mars, Charli XCX, and others.
AI and Strategic Partnerships
Signed early AI partnerships (including Suno, Stability and Udio) structured as consumption-based, variable economics expected to drive higher ARPU and materially contribute to revenue/margin beginning in fiscal 2027.
Expanded M&A Capacity for Catalog Acquisitions
Increased equity commitment with Bain JV by $100 million each, raising total JV capacity from $1.2 billion to approximately $1.65 billion to accelerate high-quality, accretive catalog acquisitions.
Cost Savings and Efficiency
Ongoing cost savings plan on schedule and expected to contribute 150–200 basis points to margin in fiscal 2026; company cites technology investments and reorganization driving operating leverage.
WMG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
WMG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $28.01 | $28.86 | +3.05% |
Nov 20, 2025 | $30.30 | $29.50 | -2.66% |
Aug 07, 2025 | $29.48 | $30.57 | +3.70% |
May 08, 2025 | $29.33 | $27.00 | -7.94% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Warner Music Group (WMG) report earnings?
Warner Music Group (WMG) is schdueled to report earning on May 12, 2026, TBA (Confirmed).
What is Warner Music Group (WMG) earnings time?
Warner Music Group (WMG) earnings time is at May 12, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is WMG EPS forecast?
WMG EPS forecast for the fiscal quarter 2026 (Q2) is 0.27.
