Warner Music Group (WMG) Q1 2026 earnings summary

Executive summary

• Revenue grew 10% year-over-year to $1.84 billion, with strong performance in both Recorded Music and Music Publishing, and robust digital, artist services, and licensing growth.

• Adjusted OIBDA increased 28% to $463 million, with margin improving to 25.2% from 21.8% year-over-year.

• Operating income rose 35% to $288 million, while net income declined 27% to $175 million due to currency impacts and lower other income.

• Operating cash flow grew 33% to $440 million, and free cash flow increased 42% to $420 million.

• Strategic initiatives, including AI partnerships, catalog acquisitions, and cost savings, are expected to drive further margin improvement and global expansion.

Financial highlights

• Total revenue: $1.84 billion (+10% year-over-year, +7% in constant currency); streaming revenue up 12% in Recorded Music and 3% in Music Publishing.

• Adjusted OIBDA: $463 million (+28%), margin up to 25.2%; operating income: $288 million (+35%).

• Operating cash flow: $440 million (+33%); free cash flow: $420 million (+42%).

• Music Publishing revenue grew 12% to $362 million, with synchronization up 54% and performance up 14%.

• U.S. revenue increased 9% to $767 million; international revenue up 12% to $1.08 billion.

Outlook and guidance

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

• 2026 outlook targets 150–200 basis points of margin improvement, driven by investments in core business, expanded monetization, and cost savings.

• Management expects sufficient liquidity to support operations over the next twelve months.

• AI partnerships and expanded M&A capacity are set to drive future growth, with a positive outlook for 2026 and beyond.