Warner Music Group Corp. (NASDAQ:WMG) shares traded higher Monday after the company released preliminary third-quarter results and moved its earnings announcement to Aug. 5 from Aug. 6.
The gain came alongside broader market strength as investors assessed the company’s early financial update.
Preliminary Revenue Rises 10%
Warner Music estimated third-quarter revenue increased 10% year over year to $1.864 billion, supported by growth across recorded music, publishing and digital operations.
Recorded Music revenue increased 10% to $1.488 billion, while Music Publishing revenue grew 12% to $377 million.
Digital revenue climbed 11% to $1.251 billion, led by 12% growth in Recorded Music streaming revenue to $1.001 billion. Music Publishing digital revenue rose 15% to $235 million.
Operating Performance Lifts Profit And Cash Flow
Operating income jumped 80% to $305 million, while adjusted OIBDA rose 16% to $433 million. Adjusted OIBDA margin expanded to 23.2% from 22.1%.
GAAP EPS was estimated at 39 cents, compared with a 3-cent loss a year earlier. Adjusted EPS increased 21% to 51 cents, while adjusted net income rose to $266 million.
Operating cash flow surged 209% to $142 million. Warner Music ended June with $618 million in cash and $4.71 billion in debt.
Reaffirms Full-Year Guidance Ahead of Final Q3 Earnings
The company reiterated targets for high-single-digit revenue growth, double-digit adjusted OIBDA and adjusted EPS growth, and 50% to 60% operating cash flow conversion.
Warner Music expects fiscal 2026 adjusted OIBDA margin improvement at the high end of its 150-to-200-basis-point target.
The preliminary, unaudited results remain subject to change. Full third-quarter results are due Aug. 5, followed by a 4:30 p.m. ET conference call.
WMG Stock: Critical Levels To Watch
WMG’s technical setup remains bearish, with the stock trading 6.9% below its 20-day SMA, 9.9% below its 50-day SMA and 11% below its 200-day SMA.
MACD remains below its signal line with a negative histogram, while July’s death cross reinforces the cautious outlook.
- Key Resistance: $29.50, near the longer-term moving-average cluster.
- Key Support: $23.50, near the lower end of the 52-week range.
WMG Earnings Preview: August 2026 Expectations
Warner Music Group is set to report earnings on August 5, 2026 (confirmed).
- EPS Estimate: 39 cents (Up from Loss of 3 cents YoY)
- Revenue Estimate: $1.81 Billion (Up from $1.69 Billion YoY)
- Valuation: Forward P/E of 30.9x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $40.40 (range: $36.00 to $43.00) across 6 analysts. Recent analyst moves include:
- UBS: Buy (Raises Target to $42.00) (May 8)
- JP Morgan: Overweight (Raises Target to $43.00) (May 8)
- Evercore ISI Group: Outperform (Raises Target to $43.00) (May 8)
WMG Stock Price Activity: Warner Music Group shares were up 1.29% at $26.30 at the time of publication on Monday, according to Benzinga Pro data.
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