Warner Music Group's Q2 Sees 17% Revenue Surge

By Greg Peters • Thursday, May 07 16:23 • Permanent Link

Warner Music Group’s fiscal second quarter ended March 31, 2026, delivered a sharp year-over-year jump in sales, profit, and cash generation, with revenue rising 17% to $1.732 billion from $1.484 billion a year earlier.

Net income climbed to $181 million from $36 million. Operating income rose 57% to $264 million from $168 million, while adjusted OIBDA increased 31% to $397 million from $303 million. Earnings per share increased to $0.35 from $0.07, and adjusted earnings per share rose to $0.44 from $0.32.

Cash provided by operating activities more than doubled, reaching $126 million from $69 million. Free cash flow advanced to $99 million from $33 million.

Recorded music remained the largest business, with revenue up 17% to $1.380 billion from $1.175 billion. Within that segment, digital revenue increased to $975 million from $841 million, physical revenue rose to $137 million from $112 million, and artist services and expanded-rights revenue jumped to $164 million from $117 million. Licensing revenue slipped slightly to $104 million from $105 million.

Recorded music operating income increased 42% to $288 million from $203 million, and adjusted OIBDA rose 28% to $346 million from $270 million.

Music publishing revenue climbed 14% to $353 million from $310 million. Digital publishing revenue grew to $224 million from $188 million, performance revenue increased to $58 million from $53 million, synchronization revenue edged up to $50 million from $49 million, and mechanical revenue rose to $17 million from $16 million. Music publishing operating income increased 17% to $61 million from $52 million, while adjusted OIBDA rose 14% to $97 million from $85 million.

For the first six months of the fiscal year, total revenue rose 13% to $3.572 billion from $3.150 billion. Operating income increased 45% to $552 million from $382 million, adjusted OIBDA climbed 29% to $860 million from $666 million, and net income rose 29% to $356 million from $277 million. Cash from operations increased 41% to $566 million from $401 million, and free cash flow jumped 58% to $519 million from $329 million.

At March 31, 2026, Warner Music Group reported cash of $741 million, total debt of $4.719 billion, and net debt of $3.978 billion. Following these announcements, the company's shares moved 1.93%, and are now trading at a price of $30.935. For the full picture, make sure to review Warner Music's 8-K report.

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