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).…
Earnings analysis · 10-Q
WMG earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.35
- Segment
- Recorded Music
- Segment
- Music Publishing
What stood out
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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.
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EPS Beats Expectations
Diluted EPS rose to $0.35, beating the consensus estimate of $0.30.
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Significant Operating Income Growth
Operating income surged by $96 million, or 57%, reaching $264 million for Q2 2026.
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Strong Growth in Digital Revenues
Digital revenues from Recorded Music increased by $134 million, or 16%, totaling $975 million.
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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.
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Improved Adjusted OIBDA
Adjusted OIBDA increased by $94 million, or 31%, to $397 million compared to $303 million in Q2 2025.
What to watch
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Increased Income Tax Expense
Income tax expense rose by $44 million to $73 million, impacted by higher pre-tax income.
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Rising Capital Expenditures
The company faced increasing capital expenditures, totaling $47 million in Q2 2026, up from $72 million in the previous year.
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Currency Exchange Fluctuations
Significant currency exchange fluctuations affected reported revenues and expenses, including an estimated $13 million unfavorable impact on Adjusted OIBDA.
Management's outlook
Management anticipates continued revenue growth driven by digital and streaming revenues, but explicit numeric guidance has been deferred to subsequent communications.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.