Warner Music Group has issued its financial results for the three months ended March 31, 2026 (calendar Q1 – the company’s fiscal Q2).
According to the company’s fiscal Q2 (calendar Q1) results, published today (May 7), WMG saw its quarterly global company-wide revenues reach USD $1.732 billion (across recorded music, music publishing, and other activities).
Total revenue was up 12.1% YoY at constant currency.
Other highlights from the quarter include recorded music revenues up 12.7% YoY at constant currency to $1.38 billion, and subscription streaming revenues up 12.7% YoY at constant currency to $734 million.
“Our Q2 results demonstrate the powerful combination of creative and operational success, as well as financial discipline, providing clear evidence that our strategic transformation is working,” said Warner Music Group CEO Robert Kyncl in a note to investors on Thursday (May 7).
“Anchored by our 3 strategic pillars to grow share, increase the value of music, and improve efficiency and effectiveness, our momentum is building and we are well-positioned to continue delivering long-term value for our artists, songwriters, and shareholders.”
WARNER’S CALENDAR Q1 2026 IN SUMMARY (% IN CONSTANT CURRENCY):
Warner Music Group‘s overall revenues were up 12.1% YoY at constant currency to $1.732 billion in calendar Q1 2026;
Recorded music revenues were up 12.7% YoY at constant currency to $1.38 billion.
Within that figure, recorded music streaming revenues were up 12.1% YoY at constant currency to $961 million.
Recorded music subscription streaming revenues were up 12.7% YoY at constant currency to $734 million.
Music publishing revenues – at Warner Chappell Music – were up 9.6% YoY at constant currency to $353 million.
WMG said its double-digit revenue growth was underpinned by an acceleration in recorded music streaming, driven by per-subscriber minimum increases and continued market share gains.
“Our Q2 results demonstrate the powerful combination of creative and operational success, as well as financial discipline, providing clear evidence that our strategic transformation is working.
Robert Kyncl, Warner Music Group
WMG noted that a digital revenue settlement of $11 million in the prior-year quarter (the “DSP True-Up and Settlement Payments”), combined with the ongoing impact of the termination of a distribution agreement with BMG, affected its Recorded Music revenue.
The BMG Termination resulted in $6 million less Recorded Music digital revenue compared to the prior-year quarter.
Excluding these items, WMG reported that its total revenue was up 13.4% at constant currency.
RECORDED MUSIC
Warner Music Group‘s recorded music revenues were up 12.7% YoY at constant currency to $1.38 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 DSP True-Up and Settlement Payments and the BMG Termination, Recorded Music revenue was up 14.2% at constant currency.
Warner‘s recorded music streaming revenue (including ad-supported and subscription) was up 12.1% YoY on a constant currency basis to $961 million.
Adjusted for the DSP True-Up and the BMG Termination, recorded music streaming revenue was up 14.4% 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 $734 million in calendar Q1 2026, up 12.7% YoY at constant currency.
Adjusted for the DSP True-Up and BMG Termination impacts, subscription revenue was up 15.4% YoY at constant currency.
WMG said the increase in subscription revenue “reflects positive market share trends and a favorable comparison against a softer prior-year quarter”.
The quarter also benefited from a wave of subscription price increases at major streaming platforms, including Spotify‘s US Premium price hike from $11.99 to $12.99 per month, which took effect in February.
WMG generated $227 million in ad-supported recorded music streaming revenues in calendar Q1 2026, up 10.2% YoY at constant currency.
The company said the increase in ad-supported revenue “reflects a strong overall ad environment in the quarter”.
That represents a reversal from the prior-year calendar Q1 period, in which WMG‘s ad-supported recorded music streaming revenues declined 2.9% YoY at constant currency amid what the company called a “soft overall ad environment”.
Elsewhere in Recorded Music, artist services and expanded-rights revenue reached $164 million, up 33.3% YoY at constant currency, driven, according to WMG, by higher concert promotion revenue primarily in France and higher merchandising revenue.
Physical revenue increased 18.1% 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 $104 million, down 6.3% YoY at constant currency.
Top sellers in the quarter included Bruno Mars, Alex Warren, sombr, Ed Sheeran and Melanie Martinez.
MUSIC PUBLISHING
Warner‘s global music publishing division – Warner Chappell Music – saw its quarterly revenues increase by 9.6% YoY at constant currency to $353 million.
WMG reported that the increase was driven by growth across digital, performance, synchronization and mechanical revenue.
Music publishing streaming revenue increased 16.2% YoY at constant currency to $222 million, driven, WMG said, “by the impact of new deals and renewals and continued market growth”.
Performance revenue increased 3.6% YoY at constant currency to $58 million, attributable, per WMG‘s earnings report, “to higher touring and live events activity primarily in Europe”.
Synchronization revenue was $50 million, down 2% YoYat constant currency.
Mechanical revenue increased 6.3% YoY at constant currency to $17 million, driven by “the timing of distributions”.
WMG: PROFITABILITY IN CALENDAR Q1 2026
WMG‘s net income stood at $181 million versus $36 million in the prior-year quarter.
Operating income stood at $264 million versus $168 million in the prior-year quarter (up 45.1% YoY at constant currency).
The firm’s quarterly Adjusted OIBDA was $397 million versus $303 million in the prior-year quarter, up 24.5% YoY at constant currency.
Adjusted OIBDA margin increased 2.5 percentage points to 22.9% from 20.4% in the prior-year quarter, driven, WMG said, by revenue mix and savings from the company’s restructuring plans.
“For the fourth consecutive quarter, we have delivered on our sustainable growth model, accelerating core growth, margin expansion, and cash flow productivity,” said Armin Zerza, CFO, Warner Music Group.
“Behind a profitable growth engine that pairs disciplined capital allocation and rigorous cost management with industry-leading creative and AI initiatives, we are well-positioned to create significant long-term value for our shareholders.”
Armin Zerza, Warner Music Group
Added Zerza: “Behind a profitable growth engine that pairs disciplined capital allocation and rigorous cost management with industry-leading creative and AI initiatives, we are well-positioned to create significant long-term value for our shareholders.”
All percentage changes referenced in this article are at constant currency unless otherwise stated.Music Business Worldwide
