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

Warner Music Group (NASDAQ:WMG) issued an update on its third quarter 2026 earnings guidance on Monday. 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.

Analyst Ratings Changes

WMG has been the subject of several research analyst reports. Morgan Stanley set a $39.00 price objective on Warner Music Group in a research report on Friday, May 8th. Evercore restated an “outperform” rating and set a $43.00 target price on shares of Warner Music Group in a report on Friday, May 8th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Warner Music Group in a research note on Friday, May 8th. Guggenheim boosted their price objective on shares of Warner Music Group from $34.00 to $36.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Finally, JPMorgan Chase & Co. upped their target price on shares of Warner Music Group from $40.00 to $43.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Fourteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $38.43.

Warner Music Group Stock Performance

WMG stock traded down $0.86 during trading hours on Monday, reaching $25.10. The stock had a trading volume of 3,579,525 shares, compared to its average volume of 2,373,963. The stock has a 50-day simple moving average of $28.76 and a 200 day simple moving average of $28.86. Warner Music Group has a fifty-two week low of $23.34 and a fifty-two week high of $35.42. The stock has a market capitalization of $13.09 billion, a PE ratio of 29.53, a price-to-earnings-growth ratio of 0.38 and a beta of 1.30. The company has a debt-to-equity ratio of 5.62, a current ratio of 0.73 and a quick ratio of 0.71.

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

Warner Music Group Announces Dividend

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

Warner Music Group News Summary

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

A number of large investors have recently added to or reduced their stakes in WMG. Invesco Ltd. lifted its holdings in Warner Music Group by 27.8% during the 4th quarter. Invesco Ltd. now owns 706,241 shares of the company’s stock valued at $21,660,000 after purchasing an additional 153,761 shares during the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in shares of Warner Music Group in the fourth quarter valued at $307,000. Empowered Funds LLC bought a new position in shares of Warner Music Group in the fourth quarter valued at about $82,000. XTX Topco Ltd raised its position in shares of Warner Music Group by 19.7% in the fourth quarter. XTX Topco Ltd now owns 50,989 shares of the company’s stock valued at $1,564,000 after purchasing an additional 8,409 shares during the period. Finally, Twinbeech Capital LP acquired a new stake in shares of Warner Music Group during the 4th quarter worth about $425,000. 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.