Warner Music Group (WMG) Posts Record Q4 Revenue but Misses on EPS

Warner Music Group Corp. (WMG) has announced its financial results for the fourth quarter and full year ending September 30, 2025. The company’s revenue reached new heights, although earnings per share fell short of expectations.

Streaming and Publishing Momentum Push Q4 Revenue to Record Highs

Warner Music Group Corp. (WMG) has reported a significant increase in revenue for the fourth quarter ending September 30, 2025. The company achieved a total revenue of $1.87 billion, marking a 15% rise compared to the same period last year and surpassing the expected $1.68 billion. This growth was driven by double-digit increases in both recorded music and music publishing sectors, with recorded music streaming showing a high single-digit rise in subscription streaming, which was a key contributor to this performance.

However, despite the robust revenue figures, WMG’s earnings per share (EPS) of $0.21 fell short of the expected $0.37. This shortfall in EPS can be attributed to various factors, including restructuring and impairment charges that increased by 54% year-over-year, as well as higher amortization expenses. The company’s net income for the quarter was $109 million, a significant improvement from $48 million in the previous year, but still not enough to meet EPS expectations.

WMG’s adjusted OIBDA for the quarter increased by 15% to $405 million, maintaining a margin of 21.7%. This was consistent with the prior year, indicating stable operational efficiency. The company’s cash flow from operations decreased by 24% to $231 million, primarily due to timing issues related to working capital and severance payments. Despite these challenges, WMG’s revenue growth highlights the strength of its core business and market position.

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WMG Expects Margin Expansion and Accelerated Growth in 2026

Looking forward to 2026, Warner Music Group Corp. is optimistic about its growth prospects. The company anticipates continued favorable trends in the music industry, which are expected to support its strategy for accelerated growth. WMG plans to leverage these industry dynamics along with cost-saving measures that are projected to improve margins by 150 to 200 basis points. The company is focused on driving efficiency and investing in opportunities that will enhance value for its artists, songwriters, and shareholders.

WMG’s strategic initiatives include expanding its digital revenue streams and exploring new opportunities in artificial intelligence. The company has already seen positive impacts from these efforts, as demonstrated by the growth in digital and streaming revenues. WMG’s music publishing segment also showed strong performance, with revenue increasing by 14% in the fourth quarter, supported by growth in performance, digital, mechanical, and synchronization revenue.

Despite the challenges faced in the current fiscal year, WMG remains committed to its long-term goals. The company’s management has expressed confidence in its ability to deliver sustained profitable growth, with a focus on creating larger opportunities for its creative community and driving shareholder value. As WMG continues to navigate the evolving music landscape, its strategic focus on digital innovation and cost management will be key to achieving its ambitious targets for 2026 and beyond.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.