Warner Music Group Reports 17% Revenue Growth to $1.732 Billion in Q2 2026

Warner Music Group Corp. (WMG) reported a significant increase in financial performance for the second quarter of fiscal year 2026, ending March 31, 2026. The company generated total revenues of $1.732 billion, a 17% increase from $1.484 billion in the same period last year. This growth was driven by a 16% rise in digital revenue, which reached $975 million, and a 22% increase in physical sales, totaling $137 million. The net income attributable to Warner Music Group Corp. also saw a substantial rise, reaching $183 million compared to $36 million in the prior year, resulting in a basic earnings per share of $0.35.

In comparison to the previous fiscal period, WMG's total revenues for the six months ended March 31, 2026, increased by 13% to $3.572 billion from $3.150 billion. The growth was attributed to a combination of factors, including a 14% increase in digital revenue and a 26% rise in artist services and expanded rights revenue. The company also noted a favorable impact from currency exchange fluctuations, which contributed approximately $61 million to revenue growth. However, the termination of its distribution agreement with BMG negatively impacted digital revenue by $12 million.

Strategically, WMG has been active in restructuring and optimizing its operations. The company is in the process of implementing a 2025 Restructuring Plan aimed at generating annualized cost savings of approximately $300 million by the end of fiscal year 2027. As of March 31, 2026, WMG recorded cumulative restructuring and impairment charges of $148 million related to this plan. Additionally, the company has been investing in acquisitions, including music publishing rights and catalogs, which amounted to $457 million in the first half of the fiscal year.

Operationally, WMG's Recorded Music segment reported revenues of $1.380 billion for the quarter, a 17% increase year-over-year, while the Music Publishing segment generated $353 million, up 14%. The company also experienced growth in international markets, with international Recorded Music revenues increasing by 20% to $990 million. The total employee headcount remained stable, reflecting the company's focus on efficiency amid its restructuring efforts.

Looking ahead, WMG expressed optimism about its growth trajectory, driven by the ongoing expansion of digital music consumption and strategic investments in artist services. The company anticipates that its restructuring initiatives will enhance operational efficiency and profitability, positioning it well for future growth in the competitive music entertainment landscape.