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 focus on market share growth, increasing music value, operational efficiency, and leveraging AI, supported by innovative deals, partnerships, and acquisitions.

• Streaming growth accelerated, driven by per-subscriber minimum increases and market share gains.

Financial highlights

• Total revenue for the quarter was $1.73 billion (+17% year-over-year), and for the six months ended March 31, 2026, $3.57 billion (+13%).

• Net income for the quarter was $181 million, and for the six months $359 million (+32% year-over-year).

• Adjusted OIBDA margin improved to 22.9% (up from 20.4%), with operating income up 57% to $264 million.

• Cash from operations for the quarter was $126 million (+83%), and for the six months $566 million.

• EPS for the quarter was $0.34 (diluted), with Adjusted EPS at $0.44.

Outlook and guidance

• Full-year margin expansion expected at the high end of 150–200 basis points, with targets for high single-digit revenue growth, double-digit adjusted OIBDA and EPS growth, and 50%-60% operating cash flow conversion.

• The 2025 Restructuring Plan is expected to generate $300 million in annualized run-rate cost savings by fiscal 2027, with most savings accretive to Adjusted OIBDA.

• Anticipates material revenue contribution from AI licensing deals starting in fiscal 2027.

• Continued focus on innovative partnerships and expansion into new markets, including direct operations in India.