Warner Music Stock Rises After Preliminary Results Show Stronger Profit And Cash Flow

Warner Music Group Corp. (NASDAQ: WMG ) shares traded higher Monday after the company released preliminary third-quarter results and moved its earnings announcement to Aug.

5 from Aug.

6.

The gain came alongside broader market strength as investors assessed the company’s early financial update.

Preliminary Revenue Rises 10% Warner Music estimated third-quarter revenue increased 10% year over year to $1.864 billion, supported by growth across recorded music, publishing and digital operations.

Recorded Music revenue increased 10% to $1.488 billion, while Music Publishing revenue grew 12% to $377 million.

Digital revenue climbed 11% to $1.251 billion, led by 12% growth in Recorded Music streaming revenue to $1.001 billion.

Music Publishing digital revenue rose 15% to $235 million.

Operating Performance Lifts Profit And Cash Flow Operating income jumped 80% to $305 million, while adjusted OIBDA rose 16% to $433 million.

Adjusted OIBDA margin expanded to 23.2% from 22.1%.

GAAP EPS was estimated at 39 cents, compared with a 3-cent loss a year earlier.

Adjusted EPS increased 21% to 51 cents, while adjusted net income rose to $266 million.

Operating cash flow surged 209% to $142 million.

Warner Music ended June with $618 million in cash and $4.71 billion in debt.

Reaffirms Full-Year Guidance Ahead of Final Q3 Earnings The company reiterated targets for high-single-digit revenue growth, double-digit adjusted OIBDA and adjusted EPS growth, and 50% to 60% operating cash flow conversion.

Warner Music expects fiscal 2026 adjusted OIBDA margin improvement at the high end of its 150-to-200-basis-point target.

The preliminary, unaudited results remain subject to change.

Full third-quarter results are due Aug.

5, followed by a 4:30 p.m.

ET conference call.

Read Also: Warner Music Hits All The Right Notes With Blowout Quarter, Analyst Says More Growth Ahead WMG Stock: Critical Levels To Watch WMG’s technical setup remains bearish, with the stock trading 6.9% below its 20-day SMA, 9.9% below its 50-day SMA and 11% below its 200-day SMA.

MACD remains below its signal line with a negative histogram, while July’s death cross reinforces the cautious outlook.

Key Resistance: $29.50, near the longer-term moving-average cluster.

Key Support: $23.50, near the lower end of the 52-week range.

WMG Earnings Preview: August 2026 Expectations Warner Music Group is set to report earnings on August 5, 2026 (confirmed).

EPS Estimate: 39 cents (Up from Loss of 3 cents YoY) Revenue Estimate: $1.81 Billion (Up from $1.69 Billion YoY) Valuation: Forward P/E of 30.9x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $40.40 (range: $36.00 to $43.00) across 6 analysts.

Recent analyst moves include: UBS: Buy (Raises Target to $42.00) (May 8) JP Morgan: Overweight (Raises Target to $43.00) (May 8) Evercore ISI Group: Outperform (Raises Target to $43.00) (May 8) WMG Stock Price Activity: Warner Music Group shares were up 1.29% at $26.30 at the time of publication on Monday, according to Pro data.

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