Warner Music Group Q2 revenue beats estimates on streaming growth

Warner Music

07/05/2026 21:11

Overview

Music label's fiscal Q2 revenue rose 17%, beating analyst expectations

Adjusted EPS for fiscal Q2 rose to $0.44 from $0.32 a year earlier

Company attributes growth to streaming gains, market share, and cost-saving initiatives

Outlook

Company expects full-year margin expansion at high end of 150-200 basis points guidance

Warner Music Group sees continued momentum in streaming growth and market share gains

Company says cost-savings initiatives are supporting margin expansion going forward

Result Drivers

STREAMING GROWTH - Higher subscription and ad-supported streaming revenue drove results, with Recorded Music streaming revenue up 16.5% and Music Publishing streaming revenue up 20%

ARTIST SERVICES AND PHYSICAL SALES - Growth in artist services, expanded-rights revenue, and strong physical sales from new releases and catalog supported revenue gains

COST SAVINGS AND RESTRUCTURING - Margin expansion was supported by revenue mix and savings from restructuring plans, partially offset by unfavorable currency movements

Company press release: ID:nBw9x3Zgva

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.73 bln
$1.61 bln (14 Analysts)
Q2 Net Income
$181 mln
Q2 Free Cash Flow
$99 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "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 $38.00, about 25.2% above its May 6 closing price of $30.35

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)