Warner Music beats Q1 revenue estimates on strength in digital and streaming services

Warner Music

05/02/2026 21:11

Overview

Music company reported fiscal Q1 revenue up 10%, beating analyst expectations

Operating income for fiscal Q1 rose 35% yr/yr

Adjusted OIBDA for fiscal Q1 increased 28% yr/yr

Outlook

Warner Music Group plans 150-200 basis points margin improvement in 2026

Company aims to accelerate growth through core investments and monetization expansion

Warner Music Group leveraging AI for long-term value creation

Result Drivers

RECORDED MUSIC GROWTH - Driven by digital and streaming revenue increases, offset by a decline in physical sales

MUSIC PUBLISHING GROWTH - Gains across digital, synchronization, and performance revenues

COST SAVINGS - Margin expansion supported by cost-saving measures and strategic investments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.84 bln
$1.77 bln (14 Analysts)
Q1 EPS
$0.33
Q1 Net Income
$175 mln
Q1 Free Cash Flow
$420 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the entertainment production peer group is "buy"

Wall Street's median 12-month price target for Warner Music Group Corp is $37.45, about 32.8% above its February 4 closing price of $28.20

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw6WcCBa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)