Warner Music Group (WMG) Q2 2026 earnings summary

Executive summary

• Revenue grew 17% year-over-year to $1.73 billion, with double-digit gains in both Recorded Music and Music Publishing, driven by digital and streaming growth and strong operating performance.

• Net income surged to $181 million from $36 million in the prior-year quarter, reflecting higher operating income and improved margins.

• Adjusted OIBDA increased 31% to $397 million, with margin expansion to 22.9% from 20% year-over-year.

• Strategic partnerships, AI initiatives, and exclusive content deals, including with Netflix and Paramount, are driving innovation and new revenue streams.

• Market share gains were broad-based, with U.S. streaming share up and new release share increasing year-over-year.

Financial highlights

• Total revenue: $1.73 billion (+17% year-over-year); Adjusted OIBDA: $397 million (+31%), margin 22.9%; net income: $181 million; operating income: $264 million (+57%).

• Adjusted EPS grew 38% year-over-year to $0.44; diluted EPS was $0.34.

• Operating cash flow surged 83% year-over-year to $126 million for the quarter and $961 million for the half-year.

• Cash balance at $741 million, net debt $3.98 billion as of March 31, 2026.

• Physical revenue up 22%, artist services and expanded rights revenue up 40%, driven by concert promotion and merchandising.

Outlook and guidance

• Full-year margin expansion expected at the high end of 150–200 basis points, with sustainable growth and cash flow productivity emphasized.

• The 2025 Restructuring Plan targets $300 million in annualized run-rate cost savings by fiscal 2027, mostly accretive to Adjusted OIBDA.

• AI-driven revenue streams and premium-tier DSP offerings expected to contribute materially starting fiscal 2027.