Profit rebounds in Warner Music Group (Nasdaq: WMG) Q3 2026 estimates
Rhea-AI Filing Summary
Warner Music Group Corp. provided unaudited, preliminary estimates for the three months ended June 30, 2026. Consolidated revenue is estimated at $1,864 million, up 10% from $1,689 million, with total digital revenue at $1,251 million, up 11%. Recorded Music revenue is estimated at $1,488 million and Music Publishing at $377 million, both growing double digits, while Recorded Music streaming revenue is estimated at $1,001 million, up 12%.
Estimated operating income rose 80% to $305 million, and Adjusted OIBDA increased 16% to $433 million, for a 23.2% margin. Net income attributable to Warner Music Group Corp. is estimated at $204 million, with EPS of $0.39 versus ($0.03) a year earlier and Adjusted EPS of $0.51 versus $0.42. Cash provided by operating activities is estimated at $142 million, up from $46 million, with cash and cash equivalents of $618 million and total consolidated indebtedness of $4,710 million, including $666 million of non-recourse debt. The company reiterates financial targets, expects an Adjusted OIBDA margin increase at the high end of its 150–200 basis-point goal for the twelve months ending September 30, 2026, and will release full results and hold an earnings call on August 5, 2026 at 4:30 p.m. ET.
Positive
- Profitability surged, with estimated operating income up 80% to $305 million and EPS improving from ($0.03) to $0.39, reflecting a sharp swing to positive earnings.
- Adjusted OIBDA strength: estimated Adjusted OIBDA rose 16% to $433 million and margin expanded to 23.2%, while operating cash flow climbed to $142 million, a 209% increase.
- Digital and streaming growth remained robust, with total digital revenue estimated up 11% to $1,251 million and Recorded Music streaming revenue up 12% to $1,001 million.
Negative
- None.
Filing Explained
The June 30 estimates are not final, and the results release and call moved from August 6 to August 5, 2026.
The June 30, 2026 quarterly figures remain preliminary and unaudited: the company has not finalized them, and KPMG LLP performed no procedures or provided assurance on these estimates.
The company moved its previously announced results release and earnings call from
8-K Event Classification
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Earnings Snapshot
The company reiterates targets of high-single-digit consolidated revenue growth, double-digit Adjusted OIBDA and Adjusted EPS growth, and 50–60% operating cash flow conversion, and expects an Adjusted OIBDA margin increase versus the prior year at the high end of its 150–200 basis point target for the twelve months ended September 30, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.