WMG earnings analysis
What we found in WMG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Warner Music Group reported strong Q2 earnings for 2026, with total revenues of $1.732 billion, surpassing analyst expectations of $1.614 billion, and diluted EPS of $0.35, exceeding the forecast of $0.30. The notable growth stemmed from a $205 million increase in Recorded Music revenue, primarily driven by a 16% increase in digital revenue, and a significant 42% rise in operating income.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Increase Exceeds Estimates
- Total revenue grew by $248 million, or 17%, from $1.484 billion in Q2 2025 to $1.732 billion in Q2 2026, surpassing estimates of $1.614 billion.
- EPS Beats Expectations
- Diluted EPS rose to $0.35, beating the consensus estimate of $0.30.
- Significant Operating Income Growth
- Operating income surged by $96 million, or 57%, reaching $264 million for Q2 2026.
- Strong Growth in Digital Revenues
- Digital revenues from Recorded Music increased by $134 million, or 16%, totaling $975 million.
- Segment Performance
- Recorded Music revenues expanded by $205 million, or 17%, to $1.380 billion, while Music Publishing revenues rose by $43 million, or 14%, to $353 million.
- Improved Adjusted OIBDA
- Adjusted OIBDA increased by $94 million, or 31%, to $397 million compared to $303 million in Q2 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Income Tax Expense
- Income tax expense rose by $44 million to $73 million, impacted by higher pre-tax income.
- Rising Capital Expenditures
- The company faced increasing capital expenditures, totaling $47 million in Q2 2026, up from $72 million in the previous year.
- Currency Exchange Fluctuations
- Significant currency exchange fluctuations affected reported revenues and expenses, including an estimated $13 million unfavorable impact on Adjusted OIBDA.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.35
- Gross margin
- 45.9%
- Operating margin
- 15.3%
- Segment
- Recorded Music
- Segment
- Music Publishing
What they said about what is next.
Management anticipates continued revenue growth driven by digital and streaming revenues, but explicit numeric guidance has been deferred to subsequent communications.
The filing reads better than the one before it.
What came before.
- 10-Q · February 9, 2026
- Warner Music Group reported solid top-line growth with revenue of $1,840.0 million for the quarter (up $174.0 million, +10.4% vs. prior year) and stronger operating performance (operating income $288.0 million).…
- 10-K · November 20, 2025
- Warner Music Group positions itself as a scale leader in recorded music and publishing, emphasizing A&R, global reach and commercial innovation (citing landmark deals with Apple, YouTube and Tencent) and a strategy to…
- 10-Q · May 9, 2024
- Warner Music Group reported Q3 (three months ended March 31, 2024) revenue of $1,494 million, up $95 million (6.8%) versus $1,399 million a year ago, and diluted EPS of $0.18 versus $0.06 a year ago. Recorded Music and…
- 10-Q · February 8, 2024
- Warner Music reported revenue of $1,748 million for the three months ended December 31, 2023, up $260 million (+17.5%) versus the year-ago quarter, with operating income of $354 million and diluted EPS of $0.30 (versus…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing WMG makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever