Warner Music Group Corp. (WMG)
NASDAQ:WMG
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Earnings Data
Report Date
Aug 11, 2026TBA (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.35Last Year’s EPS
-0.03Same Quarter Last Year
Strong Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented strong financial and operational momentum: double-digit revenue growth, 24% adjusted OIBDA growth, meaningful margin expansion (~230 bps), large improvements in adjusted net income and cash flow, broad-based streaming and physical growth, catalog monetization progress, and strategic AI and distribution initiatives. Challenges were relatively limited and included APAC underperformance, an uneven ad environment across partners, a meaningful debt load (net debt $4.0B), and the fact that some growth was aided by pricing and easier comps. Several strategic initiatives (catalog JV deployments, Revelator acquisition, AI licensing like Suno) are positioned to drive future upside but have limited current-quarter contribution. Overall, positives substantially outweigh the negatives.Company Guidance
Strong Top-Line Growth
Total revenue increased 12% year-over-year (constant currency) for the quarter, driven by double-digit growth across recorded music and music publishing.
Robust Streaming Performance
Recorded music revenue grew 13% with subscription streaming accelerating to 15% growth (adjusted). Ad-supported streaming grew 11% (adjusted). Management decomposed the 15% subscription growth as ~6–7% subscriber growth, ~3 percentage points from PSM/pricing, ~3 percentage points from market share gains, and ~2–3 points from easier comps.
Significant Margin and Profit Expansion
Adjusted OIBDA grew 24% and margin expanded by ~230 basis points in the quarter (management noted >200 bps of expansion and achieving the high end of their 150–200 bps annual target for a second consecutive quarter).
Strong Earnings and Cash Flow Improvements
Adjusted net income increased 41% and adjusted EPS rose 38% to $0.44. Operating cash flow grew 83% in Q2, with first-half cash conversion of adjusted OIBDA at 66%.
Broad-Based Revenue Drivers
Physical revenue rose 18% (strong releases), artist services & expanded rights revenue increased 33% (concert promotion in France and merchandising), and music publishing revenue grew 10% with 16% growth in publishing streaming.
Market Share Gains and Creative Success
U.S. streaming market share increased 1.1 percentage points and U.S. new release share grew 2.7 percentage points. Company highlighted multiple chart-topping artists and successful local number-ones across several countries.
Catalog Monetization and Scale
Catalog represents ~65% of recorded music streaming revenue; company cited catalog size of over 1 million tracks from 70,000+ artists and examples of catalog reactivation (e.g., Madonna weekly streams +24% vs baseline; 35% of her Spotify streams from under-28s).
Strategic AI and Partnership Wins
Leadership in AI cited (Time 100 Most Influential Companies). Partnerships and licensing deals with AI platforms (e.g., Suno) highlighted—Suno reported ~2 million subscribers at ~$12.50/mo (management referenced $300M annualized revenue) and is expected to contribute materially starting fiscal 2027. Management reported no observed dilution from AI so far.
Disciplined Capital Allocation and M&A Progress
Joint venture with Bain has deployed $650 million of its capacity to acquire catalogs; management reports realized returns of ~20% across investments. Announced agreement to acquire distribution platform Revelator and a strategic deal with TwoStream to bolster distribution and Mexican música pipeline.
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 |
|---|---|---|---|
May 07, 2026 | $31.04 | $33.36 | +7.47% |
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% |
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 Corp. (WMG) report earnings?
Warner Music Group Corp. (WMG) is schdueled to report earning on Aug 11, 2026, TBA (Confirmed).
What is Warner Music Group Corp. (WMG) earnings time?
Warner Music Group Corp. (WMG) earnings time is at Aug 11, 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 (Q3) is 0.35.
