Warner Music Pre-Announces Strong Q3: Revenue +10%, Operating Income +80%, Raises Margin Outlook

summarizeSummary

Warner Music Group pre-announced strong Q3 2026 results with 10% revenue growth and 80% operating income growth, and raised its margin expansion outlook to the high end of its target range.

check_boxKey Events · Earnings and Guidance · WMG

• Q3 Revenue +10% to $1.86B

  Consolidated revenue is estimated at $1,864 million, a 10% increase (9% in constant currency) from $1,689 million in Q3 2025, fueled by 12% growth in Recorded Music streaming and a 15% jump in Music Publishing digital.

• Operating Income Surges 80%

  Operating income is estimated at $305 million, up from $169 million a year ago, with the operating margin expanding to 16.4% from 10.0%, reflecting strong operating leverage and restructuring savings.

• Adjusted OIBDA +16%, Margin Target Raised

  Adjusted OIBDA is estimated at $433 million (23.2% margin), a 16% rise from $373 million (22.1% margin). The company now expects the full-year Adjusted OIBDA margin increase to land at the high end of its 150-200 bps target.

• EPS Swings to $0.39 from Loss

  GAAP EPS is estimated at $0.39, compared to ($0.03) in the prior year; Adjusted EPS is estimated at $0.51 versus $0.42, reflecting strong operating performance and lower restructuring costs.

auto_awesomeAnalysis · WMG · Trade & Services

Warner Music Group delivered preliminary Q3 results well above expectations, with revenue up 10% to $1.86 billion and operating income surging 80% to $305 million. Adjusted OIBDA rose 16% to $433 million, and the company now expects Adjusted OIBDA margin expansion at the high end of its 150-200 basis point target. The early release and strong numbers, coming just days after the CFO's departure, signal operational momentum and confidence in the full-year outlook.