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Warner Music Group Corp.(WMG)Earnings, Financials & Key Ratios
WMG•NASDAQ
$27.40
39.1× P/E·Price updated Jul 6, 2026
AboutWarner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. The company operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin' Records, Warner Classics, and Warner Music Nashville. This segment markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. The Music Publishing segment owns and acquires rights to approximately one million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions. Its catalog includes approximately 100,000 songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. This segment also administers the music and soundtracks of various third-party television and film producers and studios. The company was founded in 1929 and is headquartered in New York, New York.Show more
- Revenue$6.71B+4.4%
- EBITDA$1.16B+0.5%
- Net Income$365M-16.1%
- EPS (Diluted)0.70-16.7%
- Gross Margin45.85%-4.1%
- EBITDA Margin17.24%-3.7%
- Operating Margin10.35%-19.2%
- Net Margin5.44%-19.6%
- ROE50.98%-35.3%
WMG Price & Volume
Warner Music Group Corp. (WMG) stock price & volume — 10-year historical chart
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Volatile Revenue Growth Masks Structural Leverage Risks
Investment Thesis • Updated 2026Q2
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Strained
Cash Flow:Mixed
Primary Risk:High Debt Leverage Sensitivity
Key Thesis Takeaways
- Warner Music Group faces a complex outlook characterized by inconsistent top-line performance, with revenue growth fluctuating between a 16.7% expansion and a 4.7% contraction over the last ten quarters.
- While the company maintains a stable gross margin profile near 46%, its reliance on debt-funded operations and a thin equity base of $738 million creates significant sensitivity to interest rate environments.
- Investors should monitor the sustainability of dividend payments, which have persisted despite periods of negative free cash flow, as the company navigates high capital intensity and erratic working capital cycles.
Verdict Logic
while the forward P/E of 19.02 suggests potential value, the company's current ratio of 0.73 and high debt-to-equity ratio of 5.08 warrant caution regarding liquidity and long-term solvency.
WMG Growth Metrics
Warner Music Group Corp. (WMG) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years8.5%
5 Years8.49%
3 Years4.25%
TTM12.55%
Profit CAGR
10 Years-
5 Years-
3 Years-12.83%
TTM0%
EPS CAGR
10 Years-
5 Years-
3 Years-12.92%
TTM1.49%
Return on Capital
10 Years10.16%
5 Years15.59%
3 Years15.16%
Last Year12.75%
WMG Recent Earnings
Warner Music Group Corp. (WMG) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 5/12 qtrs (42%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
May 7, 2026Metric
Actual
Est
EPS
$0.35+31.0%
$0.27
Rev
$1.7B+7.4%
$1.6B
Q1 2026
Feb 5, 2026Metric
Actual
Est
EPS
$0.33-17.5%
$0.40
Rev
$1.8B+3.8%
$1.8B
Q4 2025
Nov 20, 2025Metric
Actual
Est
EPS
$0.21-40.0%
$0.35
Rev
$1.9B+5.4%
$1.8B
Q3 2025
Aug 7, 2025Metric
Actual
Est
EPS
$0.03-110.3%
$0.29
Rev
$1.7B+6.0%
$1.6B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 7, 2026 | $0.35vs $0.27+31.0% | $1.7Bvs $1.6B+7.4% |
| Q1 2026 | Feb 5, 2026 | $0.33vs $0.40-17.5% | $1.8Bvs $1.8B+3.8% |
| Q4 2025 | Nov 20, 2025 | $0.21vs $0.35-40.0% | $1.9Bvs $1.8B+5.4% |
| Q3 2025 | Aug 7, 2025 | $0.03vs $0.29-110.3% | $1.7Bvs $1.6B+6.0% |
Based on last 12 quarters of dataView full earnings history →
Latest WMG News
Recent stock market news and headlines for Warner Music Group Corp. (WMG)
Zacks Investment Research·Jun 16, 2026
5 Consumer Discretionary Stocks to Buy Despite the Sector's BloodbathRL, HAS, FOXA, HTHT and WMG are five consumer discretionary stocks that stand out despite the sector facing pressure from rate uncertainty and geopolitical risks.
Peers Comparison
Key metrics vs top competitors for Warner Music Group Corp. (WMG)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $27.40 | $14.3B | 39.14 | 4.37% | 5.44% | 50.98% | 2.69% | |
| $21.16 | $125.01B | -59.70 | 2.12% | -2.73% | -4.08% | — | |
| $183.29 | $42.59B | -763.71 | 8.83% | 0.33% | 4.44% | — | |
| $57.35 | $5.44B | 122.02 | 6.71% | 4.96% | — | — | |
| $483.01 | $99.42B | 40.25 | 9.65% | 15.45% | 35.34% | — | |
| $312.66 | $4.59T | 41.91 | 6.43% | 27.15% | 146.69% | — |
Compare WMG vs Peers
Warner Music Group Corp. (WMG) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
WMG SEC Filings & Documents
Warner Music Group Corp. (WMG) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 7, 2026·SEC
Material company update
Mar 11, 2026·SEC
Material company update
Mar 6, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
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WMG Frequently Asked Questions
Warner Music Group Corp. (WMG) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Warner Music Group Corp.'s revenue?
Warner Music Group Corp. (WMG) reported $7.13B in revenue for fiscal year 2025. This represents a 117% increase from $3.29B in 2002.
How fast is Warner Music Group Corp. growing?
Warner Music Group Corp. (WMG) grew revenue by 4.4% over the past year. Growth has been modest.
Is WMG profitable?
Yes, Warner Music Group Corp. (WMG) is profitable, generating $452.0M in net income for fiscal year 2025 (5.4% net margin).
Dividend & Returns
Does WMG pay dividends?
Yes, Warner Music Group Corp. (WMG) pays a dividend with a yield of 2.69%. This makes it attractive for income-focused investors.
What is WMG's return on equity?
Warner Music Group Corp. (WMG) has a return on equity (ROE) of 51.0%. This is excellent, indicating efficient use of shareholder capital.
What is Warner Music Group Corp.'s free cash flow?
Warner Music Group Corp. (WMG) generated $675.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.