Sirius XM (NASDAQ:SIRI) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Sirius XM (NASDAQ:SIRI) announced its quarterly earnings data on Thursday. The company reported $0.78 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.01, FiscalAI reports. Sirius XM had a net margin of 10.23% and a return on equity of 9.37%. The firm had revenue of $2.15 billion during the quarter, compared to analysts’ expectations of $2.16 billion. During the same quarter in the previous year, the business posted $0.84 earnings per share. The business’s quarterly revenue was down .4% compared to the same quarter last year.

Here are the key takeaways from Sirius XM’s conference call:

• Sirius XM raised its 2026 guidance for the third consecutive time, now targeting approximately $8.55 billion in revenue, $2.65 billion in adjusted EBITDA, and $1.4 billion in free cash flow. EBITDA rose 3% and free cash flow increased 14% in the third quarter.
• The subscription business showed signs of stabilization, with 5,000 positive self-pay net additions, improved churn of approximately 1.5%, stable ARPU of $15.18, and average listening time up 5% year over year. Companion plans and extended-duration dealer programs helped offset weaker conversion rates, though management is prioritizing subscriber lifetime value over aggressive volume growth.
• Advertising momentum is strongest in podcasting and programmatic, which grew 20% and 21%, respectively, in the Pandora and Off Platform segment. The YouTube Audio relationship expands SiriusXM Media’s reach to approximately 255 million monthly listeners, although management expects the partnership’s more meaningful financial contribution primarily in the second half of 2027 and beyond.
• Cost discipline and lower capital spending are strengthening cash generation: the company has realized $96 million of its planned $100 million in 2026 gross cost savings and reduced net leverage to 3.3 times adjusted EBITDA. Management said this financial flexibility could support a meaningful increase in share repurchases in 2027 while maintaining the dividend.
• Fourth-quarter trends are expected to be more challenging, as Continuous Service benefits anniversary, conversion pressures persist, and promotional acquisition becomes more disciplined. Elevated memory-chip costs will continue to weigh on equipment revenue and margins, while targeted increases in marketing spending and other investments may contribute to fourth-quarter margin contraction.

Sirius XM Price Performance

Shares of SIRI stock traded up $0.28 during midday trading on Friday, reaching $28.95. 1,154,513 shares of the company were exchanged, compared to its average volume of 4,772,258. The company’s 50 day moving average price is $27.51 and its two-hundred day moving average price is $26.12. The company has a market cap of $9.76 billion, a P/E ratio of 11.58, a PEG ratio of 0.50 and a beta of 0.98. Sirius XM has a 12 month low of $19.76 and a 12 month high of $32.66. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.46 and a current ratio of 0.46.

Sirius XM Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Friday, November 6th will be paid a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date is Friday, November 6th. Sirius XM’s payout ratio is currently 43.20%.

Insider Activity at Sirius XM

In other news, Director Jonelle Procope sold 16,672 shares of Sirius XM stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $29.97, for a total transaction of $499,659.84. Following the completion of the sale, the director directly owned 18,354 shares in the company, valued at $550,069.38. The trade was a 47.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 3.27% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. JPMorgan Chase & Co. upped their price target on Sirius XM from $26.00 to $34.00 and gave the company a “neutral” rating in a report on Friday, July 31st. Wells Fargo & Company restated a “hold” rating on shares of Sirius XM in a research report on Friday, October 2nd. Scotiabank initiated coverage on shares of Sirius XM in a research report on Wednesday, September 2nd. They set an “outperform” rating for the company. UBS Group set a $30.00 price objective on Sirius XM in a research report on Wednesday, July 29th. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $33.00 target price on shares of Sirius XM in a research note on Friday. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $32.38.

More Sirius XM News

Here are the key news stories impacting Sirius XM this week:

• Positive Sentiment: Higher cash-flow outlook: Sirius XM raised its 2026 free cash flow guidance to approximately $1.4 billion and set full-year revenue guidance at about $8.55 billion. Strong cash generation is particularly important for investors given the company’s dividend and capital-return profile. SiriusXM expects $1.4B 2026 free cash flow as it raises guidance to $8.55B revenue
• Positive Sentiment: Subscriber trends stabilized: Self-pay net additions reached 5,000 in the third quarter, while total subscribers held steady at roughly 33 million. This represents a more constructive trend after prior subscriber losses and may reduce concerns about the company’s core growth trajectory. Sirius XM: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Quarterly profit exceeded expectations: Sirius XM reported adjusted earnings of $0.78 per share, slightly above the roughly $0.77 consensus estimate. WWE Radio listenership also rose nearly 20% following the company’s rebrand, providing evidence that selected content initiatives are gaining traction. Sirius XM Tops Q3 Earnings Estimates
• Neutral Sentiment: Comments from Federal Reserve official Thomas Barkin that the direction of monetary policy is clear but its pace remains uncertain could affect interest-rate-sensitive stocks broadly, although the report did not identify a Sirius XM-specific impact. Fed’s Barkin comments on monetary policy
• Negative Sentiment: Revenue and earnings declined year over year: Third-quarter revenue was $2.15 billion, slightly below estimates and down about 0.4% from the prior year. Earnings also fell from $0.84 per share a year earlier, highlighting continuing pressure on growth despite the improved outlook. SiriusXM Q3 Net Income and Revenue

Sirius XM Company Profile

Sirius XM Holdings Inc is a media and entertainment company that provides subscription-based audio programming through its SiriusXM service. The company delivers a broad range of commercial-free music, live sports, news, talk and entertainment programming, including exclusive channels, original shows and coverage of major events.

SiriusXM content is distributed primarily through satellite radio and internet streaming. Subscribers can access the service in vehicles, through the SiriusXM mobile app and website, and on supported connected devices.