Top sellers in the quarter included Bruno Mars (pictured), Don Toliver, sombr, Alex Warren and Madonna.
Warner Music Group has issued its financial results for the three months ended June 30, 2026 (calendar Q2 – the company’s fiscal Q3).
According to the company’s fiscal Q3 (calendar Q2) results, published on Wednesday (August 5), WMG saw its quarterly global company-wide revenues reach USD$1.864 billion (across recorded music, music publishing, and other activities).
WMG brought its earnings date forward after the departure of CFO and COO Armin Zerza on Friday (July 31).
Total revenue was up9.3%YoY at constant currency.
Other highlights from the quarter include recorded music revenues up 8.9% YoY at constant currency to $1.488 billion, and subscription streaming revenues up 10.8% YoY at constant currency to $758 million.
“For the fifth consecutive quarter, WMG has delivered or over-delivered on our targets, proving the strength of our strategy and the momentum of our business,” said Warner Music Group CEO Robert Kyncl.
Kyncl added: “Our performance – driven by robust subscription streaming growth, market share gains, and disciplined operating leverage – highlights our ability to champion human creativity while deploying tech and AI to scale long-term profitability. We are closing the year with sharp operational focus and strong positioning to generate compounding value for our artists, songwriters, and shareholders for many years to come.”
WARNER’S CALENDAR Q2 2026 IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group‘s overall revenues were up9.3% YoY at constant currency to $1.864 billion in calendar Q2 2026;
Recorded music revenues were up8.9% YoY at constant currency to $1.488 billion.
Within that figure, recorded music streaming revenues were up 10.1% YoYat constant currency to $1.001 billion.
Recorded music subscription streaming revenues were up 10.8% YoY at constant currency to $758 million.
Music publishing revenues – at Warner Chappell Music – were up 10.9% YoY at constant currency to $377 million.
WMG said its double-digit recorded music subscription streaming growth was driven by improved terms with DSP partners, positive industry trends and resilient global market share.
“FOR THE FIFTH CONSECUTIVE QUARTER, WMG HAS DELIVERED OR OVER-DELIVERED ON OUR TARGETS, PROVING THE STRENGTH OF OUR STRATEGY AND THE MOMENTUM OF OUR BUSINESS.”
ROBERT KYNCL, WARNER MUSIC GROUP
WMG noted that a digital revenue settlement of $16 million in the prior-year quarter (the “Copyright Settlement”), combined with the ongoing impact of the termination of a distribution agreement with BMG, affected its Recorded Music revenue.
The BMG Termination resulted in $10 million less Recorded Music digital revenue compared to the prior-year quarter.
Excluding these items, WMG reported that its total revenue was up11% YoY at constant currency.
RECORDED MUSIC
Warner Music Group‘s recorded music revenues were up 8.9% YoYat constant currency to $1.488 billion.
According to WMG, the increase was driven by growth across digital, artist services and expanded-rights and physical revenue, partially offset by a slight decrease in licensing revenue.
Excluding the Copyright Settlement and the BMG Termination, Recorded Music revenue was up 11% YoY at constant currency.
Warner‘s recorded music streaming revenue (including ad-supported and subscription) was up 10.1% YoY on a constant currency basis to $1.001 billion.
Adjusted for the BMG Termination, recorded music streaming revenue was up 11.3% YoY at constant currency.
WMG also breaks that streaming figure down to highlight the performance of its subscription streaming and ad-supported streaming revenues, respectively.
The company’s revenues from recorded music subscription streaming reached $758 million in calendar Q2 2026, up 10.8% YoY at constant currency.
Adjusted for the BMG Termination, subscription revenue was up 11.8% YoY at constant currency.
WMG said the increase in subscription revenue “reflects positive market share trends, subscriber growth and improved deal economics”.
WMG generated $243 million in ad-supported recorded music streaming revenues in calendar Q2 2026, up 8% YoY at constant currency.
The increase in ad-supported revenue “reflects strong performance in the quarter, as well as improved deal economics”, WMG said.
Elsewhere in Recorded Music, artist services and expanded-rights revenue reached $224 million, up 14.9% YoY at constant currency, driven, according to WMG, by higher concert promotion revenue primarily in Japan and higher merchandising revenue.
Physical revenue increased 17.1% YoY at constant currency to reach $137 million, driven by strong releases in the quarter as well as catalog and carryover success.
Licensing revenue reached $111 million, down 0.9% YoYat constant currency.
Top sellers in the quarter included Bruno Mars, Don Toliver, sombr, Alex Warren and Madonna.
MUSIC PUBLISHING
Warner’s global music publishing division – Warner Chappell Music – saw its quarterly revenues increase by 10.9% YoYat constant currency to $377 million.
WMG reported that the increase was driven by growth across digital, synchronization, mechanical and performance revenue.
Music publishing streaming revenue increased 13.8% YoY at constant currency to $231 million, driven, WMG said, by “continued market growth and the impact of new deals and renewals”.
Performance revenue was $59 million, down 1.7% YoY at constant currency.
Synchronization revenue was $60 million, up 7.1% YoY at constant currency.
Mechanical revenue increased 18.8% YoY at constant currency to $19 million, driven by “the timing of distributions”.
WMG: PROFITABILITY IN CALENDAR Q2 2026
WMG‘s net income stood at $200 million versus a $16 million net loss in the prior-year quarter.
Operating income stood at $305 million versus $169 million in the prior-year quarter (up75.3% YoY at constant currency).
The firm’s quarterly Adjusted OIBDA was $433 million versus $373 million in the prior-year quarter, up 14.6% YoY at constant currency.
Adjusted OIBDA margin increased 1.1 percentage points to 23.2% from 22.1% in the prior-year quarter, driven, WMG said, by revenue mix and savings from the company’s restructuring plans.
“Our strong results were highlighted by double-digit subscription streaming growth bolstered by contractual per-subscriber minimum increases and sustained global share performance,” said Lou Dickler, acting CFO, Warner Music Group.
“WE DELIVERED HEALTHY MARGIN EXPANSION AND REMAIN ON TRACK TO MEET THE HIGH END OF OUR FISCAL ’26 MARGIN EXPANSION TARGETS WHILE REMAINING LASER-FOCUSED ON LONG-TERM VALUE CREATION.”
LOU DICKLER, WARNER MUSIC GROUP
Added Dickler: “We delivered healthy margin expansion and remain on track to meet the high end of our fiscal ’26 margin expansion targets while remaining laser-focused on long-term value creation.”
WMG posted a 10.9% YoY rise in recorded music subscription streaming in calendar Q4 2025, its fiscal Q1.
The company’s board declared a quarterly cash dividend of $0.20 per share on its Class A and Class B common stock, payable on September 1 to holders of record on August 20.
All percentage changes referenced in this article are at constant currency unless otherwise stated.
