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Get filing alertsWarner Music reports Q3 revenue up 10%, operating income surges 80% on streaming growth
Filed August 3, 2026 · Period ending August 3, 2026 · ~1 min read
Key Changes
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high
Q3 FY2026 revenue grew 10% to ~$1,864M; Recorded Music up 10% to ~$1,488M, Music Publishing up 12% to ~$377M, driven by strong streaming performance across subscription and ad-supported channels.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Operating income jumped 80% to ~$305M from $169M prior year; Adjusted OIBDA rose 16% to ~$433M, reflecting strong operating performance and restructuring savings. Operating margin expanded to 16.4% from 10.0%.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Streaming revenue increased 12% to ~$1,001M in Recorded Music (subscription +12%, ad-supported +10%) and Music Publishing digital revenue grew 15% to ~$235M, underscoring strength in digital channels.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
EPS turned positive at ~$0.39 vs. ($0.03) prior year; Adjusted EPS rose to ~$0.51 from $0.42. Operating cash flow surged 209% to ~$142M from $46M, driven by strong operating performance.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
low
Earnings release moved forward one day to August 5, 2026. As of June 30, 2026, cash stood at ~$618M with total debt of ~$4,710M (including $666M non-recourse).
Exhibit 99.1 view on EDGAR →
Summary
Warner Music Group disclosed preliminary Q3 FY2026 results showing robust top-line growth and exceptional margin expansion. Revenue climbed 10% year-over-year to approximately $1,864 million, with both segments performing well: Recorded Music revenue rose 10% to $1,488 million and Music Publishing revenue increased 12% to $377 million.
The standout metric is the 80% surge in operating income to $305 million, driven by strong streaming performance and cost savings from restructuring initiatives. Operating margin expanded 640 basis points to 16.4%, while Adjusted OIBDA margin improved 110 basis points to 23.2%. Streaming remains the core growth driver.
Recorded Music streaming revenue grew 12% to approximately $1,001 million, with balanced strength across subscription (up 12%) and ad-supported (up 10%) channels. Music Publishing digital revenue accelerated 15% to $235 million. The company swung to positive EPS of $0.39 from a $0.03 loss in the prior year quarter, and operating cash flow more than tripled to $142 million. For retail holders, the combination of double-digit revenue growth, margin expansion, and strong cash generation signals improving operational execution and the payoff from restructuring efforts. The company holds $618 million in cash against $4,710 million in total debt as of quarter-end.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Item 2.02 — Results of Operations and Financial Condition filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
For the three months ended June 30, 2026, consolidated digital revenue is estimated to have increased 11% (or 9% in constant currency) to approximately $1,251 million from $1,132 million for the three months ended June 30, 2025. Recorded Music streaming revenue is estimated to have increased 12% (or 10% in constant currency) to approximately $1,001 million from $895 million for the three months ended June 30, 2025. Recorded Music streaming revenue reflects growth in subscription revenue of 12% (or 11% in constant currency) and in ad-supported revenue of 10% (or 8% in constant currency). Music Publishing digital revenue is estimated to have increased 15% (same in constant currency) to approximately $235 million from $204 million for the three months ended June 30, 2025.
Digital revenue grew 11% to approximately $1,251 million in Q3 FY2026. Recorded Music streaming revenue increased 12% to approximately $1,001 million, driven by 12% growth in subscription revenue and 10% growth in ad-supported revenue. Music Publishing digital revenue rose 15% to approximately $235 million, showing strong performance across digital channels.
Added in current filing · verify on EDGAR →
Operating income is estimated to have increased 80% to approximately $305 million for the three months ended June 30, 2026, from $169 million for the three months ended June 30, 2025. Adjusted OIBDA is estimated to have increased 16% (or 15% in constant currency) to approximately $433 million for the three months ended June 30, 2026, from $373 million for the three months ended June 30, 2025, with the period over period increase primarily attributable to strong operating performance in the quarter and savings from the Company’s restructuring plans.
Operating income surged 80% to approximately $305 million in Q3 FY2026 from $169 million in the prior year quarter. Adjusted OIBDA increased 16% to approximately $433 million from $373 million, driven by strong operating performance and savings from restructuring initiatives. The operating income margin expanded to 16.4% from 10.0%, while Adjusted OIBDA margin improved to 23.2% from 22.1%.
Added in current filing · verify on EDGAR →
Cash and cash equivalents are estimated as of June 30, 2026 to have been approximately $618 million. Total consolidated indebtedness is estimated as of June 30, 2026 to have been approximately $4,710 million, which includes non-recourse indebtedness of $666 million. For the three months ended June 30, 2026, cash provided by operating activities is estimated to have increased $96 million or 209%, to approximately $142 million from $46 million for the three months ended June 30, 2025. The increase was largely a result of strong operating performance.
As of June 30, 2026, Warner Music Group held approximately $618 million in cash and cash equivalents, with total consolidated debt of approximately $4,710 million (including $666 million of non-recourse debt). Operating cash flow surged 209% to approximately $142 million from $46 million in the prior year quarter, driven by strong operating performance.
Event · Exhibit 99.1
Warner Music Group moved its Q3 FY2026 earnings release to August 5, 2026 (one day earlier) and filed preliminary Q3 estimates.
Added in current filing · view on EDGAR →
the company has filed a Form 8-K with the U.S. Securities and Exchange Commission that includes certain preliminary estimated financial information as of and for the three months ended June 30, 2026 based on currently available information.
Warner Music disclosed that it has filed preliminary estimated financial information for the quarter ended June 30, 2026. The 8-K references this preliminary data but does not include the actual figures in the press release text. Investors should review the full 8-K filing for the preliminary estimates.
Show 1 minor / wording change
Added in current filing · view on EDGAR →
Warner Music Group Corp. will release its financial results on Wednesday, August 5, 2026, for the third quarter ended June 30, 2026, instead of the previously announced reporting date of August 6, 2026.
The company moved its Q3 fiscal 2026 earnings release forward by one day, from August 6 to August 5, 2026. The earnings call will be held the same day at 4:30 p.m. ET. This is a minor scheduling change with no disclosed reason for the acceleration.
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