Warner Music Group (NASDAQ:WMG) Releases Q3 2026 Earnings Guidance

Warner Music Group (NASDAQ:WMG) issued an update on its third quarter 2026 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of 0.510-0.510 for the period, compared to the consensus earnings per share estimate of 0.390. The company issued revenue guidance of $1.9 billion-$1.9 billion, compared to the consensus revenue estimate of $1.8 billion.

Warner Music Group Trading Down 3.3%

NASDAQ WMG traded down $0.86 during trading hours on Monday, hitting $25.10. The company’s stock had a trading volume of 3,578,376 shares, compared to its average volume of 2,373,953. Warner Music Group has a twelve month low of $23.34 and a twelve month high of $35.42. The firm has a market capitalization of $13.09 billion, a P/E ratio of 29.53, a PEG ratio of 0.38 and a beta of 1.30. The company has a quick ratio of 0.71, a current ratio of 0.73 and a debt-to-equity ratio of 5.62. The stock has a fifty day moving average of $28.76 and a 200 day moving average of $28.86.

Warner Music Group (NASDAQ:WMG) last released its earnings results on Thursday, May 7th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.30 by $0.14. The firm had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.61 billion. Warner Music Group had a net margin of 6.34% and a return on equity of 62.01%. The business’s quarterly revenue was up 16.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 EPS. Equities research analysts forecast that Warner Music Group will post 1.52 earnings per share for the current fiscal year.

Warner Music Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 26th were given a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Tuesday, May 26th. Warner Music Group’s dividend payout ratio (DPR) is currently 89.41%.

Analyst Ratings Changes

A number of brokerages recently commented on WMG. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Warner Music Group in a research note on Wednesday, June 24th. UBS Group increased their target price on Warner Music Group from $40.00 to $42.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Zacks Research cut Warner Music Group from a “strong-buy” rating to a “hold” rating in a report on Monday, June 22nd. Sanford C. Bernstein restated an “outperform” rating on shares of Warner Music Group in a research report on Friday, May 8th. Finally, Guggenheim upped their price target on Warner Music Group from $34.00 to $36.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $38.43.

Key Headlines Impacting Warner Music Group

Here are the key news stories impacting Warner Music Group this week:

• Positive Sentiment: Preliminary results beat expectations: Warner Music said fiscal third-quarter results exceeded forecasts, with revenue increasing approximately 10% year over year. Double-digit streaming growth was a key contributor. Warner Music Group’s FQ3 preliminary results beat expectations Warner Music Group Q3 Revenue Up 10% on Double-Digit Streaming Growth
• Positive Sentiment: Subscription streaming remains healthy: A company filing reportedly showed recorded-music subscription streaming revenue rose 11% year over year in calendar second quarter, indicating continued momentum in Warner’s core digital business and suggesting the CFO’s departure was not caused by a weak quarter. Warner Music Group and its CFO didn’t part ways because of a dud quarter
• Positive Sentiment: Analyst sentiment is favorable: WMG was assigned an average “Moderate Buy” rating, which may provide some support despite the management changes. Warner Music Group Given Average Rating of Moderate Buy

Institutional Investors Weigh In On Warner Music Group

Several large investors have recently made changes to their positions in WMG. US Bancorp DE raised its holdings in shares of Warner Music Group by 23.5% during the third quarter. US Bancorp DE now owns 1,729 shares of the company’s stock worth $59,000 after acquiring an additional 329 shares during the period. Thrivent Financial for Lutherans boosted its stake in Warner Music Group by 1.1% in the 2nd quarter. Thrivent Financial for Lutherans now owns 34,350 shares of the company’s stock worth $936,000 after purchasing an additional 358 shares during the period. Federation des caisses Desjardins du Quebec boosted its stake in Warner Music Group by 12.0% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 3,783 shares of the company’s stock worth $116,000 after purchasing an additional 405 shares during the period. Natixis Advisors LLC boosted its stake in Warner Music Group by 3.6% in the 4th quarter. Natixis Advisors LLC now owns 12,718 shares of the company’s stock worth $390,000 after purchasing an additional 446 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Warner Music Group by 4.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,062 shares of the company’s stock worth $339,000 after purchasing an additional 460 shares in the last quarter. Institutional investors own 96.88% of the company’s stock.

Warner Music Group Company Profile

Warner Music Group is a major global music company that operates across recorded music and music publishing. Its recorded-music business comprises a portfolio of well-known labels—including Atlantic, Warner Records and Parlophone—as well as distribution and artist-services operations that support both established and emerging artists. The company’s publishing arm, Warner Chappell Music, manages songwriting catalogs and administers rights for compositions across multiple media, providing licensing for film, television, advertising and other commercial uses.

WMG’s activities span the full music value chain: signing and developing artists, producing and marketing recordings, distributing music through physical channels and streaming platforms, and monetizing rights through licensing, synchronization and neighboring-rights collection.