Warner Music Group Reports Preliminary Q3 2026 Results

What Happened
Warner Music Group (WMG) filed an 8-K on August 3, 2026 presenting preliminary, unaudited financial estimates for the three months ended June 30, 2026. The company reported consolidated revenue of approximately $1,864 million (up 10% or 9% constant currency) and announced material improvements in profitability and cash flow. WMG noted these are preliminary estimates, subject to closing procedures and change, and KPMG LLP has not performed any procedures or provided assurance on these figures.

Key Details

• Consolidated revenue: ~$1,864M, +10% (9% constant currency) vs $1,689M for Q3 2025.
• Segment revenue: Recorded Music ~$1,488M (+10% / +9% cc); Music Publishing ~$377M (+12% / +11% cc).
• Digital & streaming: Consolidated digital revenue ~$1,251M (+11% / +9% cc); Recorded Music streaming ~$1,001M (+12% / +10% cc).
• Profitability: Operating income ~$305M (+80% vs $169M); Adjusted OIBDA ~$433M (+16% / +15% cc). Adjusted OIBDA margin ~23.2% (vs 22.1%).
• EPS: GAAP EPS (Class A) ~$0.39 vs ($0.03) prior year; Adjusted EPS ~$0.51 vs $0.42.
• Cash & debt: Cash and cash equivalents ~$618M; total consolidated indebtedness ~$4,710M (including $666M non‑recourse).
• Cash flow: Cash provided by operations ~$142M (up $96M or 209% vs $46M).
• Guidance/targets reiterated: high-single-digit revenue growth, double-digit Adjusted OIBDA and Adjusted EPS growth, 50–60% operating cash flow conversion; expects Adj. OIBDA margin increase at high end of 150–200 bps target for the 12 months ended Sept 30, 2026.
• Timing: Company will release final Q3 results on Wednesday, August 5, 2026 and hold an earnings call at 4:30 p.m. ET.

Why It Matters
These preliminary results show WMG growing top-line revenue and delivering stronger profitability and cash generation versus the prior year quarter—important signals for investors monitoring margin expansion and cash conversion. However, the numbers are unaudited, preliminary, and subject to change, and the company’s independent auditor has not reviewed them; the final report on August 5 should be used for investment decisions.