Warner Music Group (NASDAQ:WMG) Releases Q3 2026 Earnings Guidance

Warner Music Group (NASDAQ:WMG) updated its third quarter 2026 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of 0.510-0.510 for the period, compared to the consensus EPS estimate of 0.390. The company issued revenue guidance of $1.9 billion-$1.9 billion, compared to the consensus revenue estimate of $1.8 billion.

Warner Music Group Trading Down 3.3%

Shares of WMG stock opened at $25.10 on Tuesday. Warner Music Group has a 12-month low of $23.34 and a 12-month high of $35.42. The company has a market capitalization of $13.09 billion, a P/E ratio of 29.53, a P/E/G ratio of 0.38 and a beta of 1.30. The firm has a 50-day moving average price of $28.57 and a 200 day moving average price of $28.82. The company has a quick ratio of 0.71, a current ratio of 0.73 and a debt-to-equity ratio of 5.62.

Warner Music Group (NASDAQ:WMG) last announced its earnings results on Thursday, May 7th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.30 by $0.14. The company had revenue of $1.73 billion for the quarter, compared to analysts’ expectations of $1.61 billion. Warner Music Group had a return on equity of 62.01% and a net margin of 6.34%.The business’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.07 earnings per share. Research analysts forecast that Warner Music Group will post 1.52 earnings per share for the current fiscal year.

Warner Music Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 26th were issued a $0.19 dividend. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 3.0%. Warner Music Group’s dividend payout ratio is 89.41%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of Warner Music Group in a research report on Wednesday, June 24th. Sanford C. Bernstein reissued an “outperform” rating on shares of Warner Music Group in a research report on Friday, May 8th. Guggenheim boosted their price target on shares of Warner Music Group from $34.00 to $36.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Zacks Research lowered shares of Warner Music Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 22nd. Finally, UBS Group increased their price objective on shares of Warner Music Group from $40.00 to $42.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, Warner Music Group currently has an average rating of “Moderate Buy” and an average target price of $38.43.

Key Warner Music Group News

Here are the key news stories impacting Warner Music Group this week:

• Positive Sentiment: Raised third-quarter guidance: Warner Music Group projected fiscal Q3 2026 EPS of $0.51, well above the $0.39 analyst consensus, and revenue of approximately $1.9 billion versus expectations of $1.8 billion. The outlook suggests earnings momentum is stronger than previously anticipated.
• Positive Sentiment: Preliminary results beat expectations: Reports indicate WMG’s fiscal third-quarter preliminary results exceeded analyst forecasts, supporting the view that the company is benefiting from continued growth in recorded music and streaming. Warner Music Group’s FQ3 preliminary results beat expectations
• Positive Sentiment: Streaming remains a growth driver: Recorded-music subscription streaming revenue reportedly increased 11% year over year in calendar Q2, while total third-quarter revenue rose 10%. This reinforces the importance of recurring digital revenue to WMG’s results. Warner Music Group subscription revenue report
• Neutral Sentiment: Earnings date moved forward: WMG will release its fiscal third-quarter results on August 5, one day earlier than previously scheduled, followed by a conference call at 4:30 p.m. ET. Management’s commentary on streaming trends, margins and the leadership transition could drive the next major move. Warner Music Group earnings conference call announcement
• Positive Sentiment: Analyst support remains favorable: WMG received an average “Moderate Buy” rating, indicating that analysts generally continue to see upside potential despite recent volatility. Warner Music Group analyst rating
• Negative Sentiment: CFO departure adds uncertainty: CFO and COO Armin Zerza is leaving after roughly one year, with Lou Dickler serving as acting CFO and Tom Corson becoming COO. Although filings reportedly indicate the change was not caused by a weak quarter, the unexpected executive reshuffling may weigh on investor confidence until more details are provided. Armin Zerza exits as Warner Music Group CFO and COO

Institutional Trading of Warner Music Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Kestra Advisory Services LLC purchased a new position in Warner Music Group in the 4th quarter worth approximately $127,000. UMB Bank n.a. boosted its holdings in Warner Music Group by 40.4% in the fourth quarter. UMB Bank n.a. now owns 2,022 shares of the company’s stock valued at $62,000 after acquiring an additional 582 shares in the last quarter. Federation des caisses Desjardins du Quebec boosted its stake in shares of Warner Music Group by 12.0% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 3,783 shares of the company’s stock valued at $116,000 after purchasing an additional 405 shares in the last quarter. Empowered Funds LLC bought a new stake in Warner Music Group during the 4th quarter valued at approximately $82,000. Finally, Ossiam bought a new position in shares of Warner Music Group during the third quarter valued at approximately $223,000. Institutional investors own 96.88% of the company’s stock.

About Warner Music Group

Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company’s publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG’s activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.