Warner Music Sees Fiscal 2026 Revenue of $7.1B, OIBDA Margin to 23.9%
Warner Music forecasts $7.1 billion revenue in fiscal 2026, up 6% year-over-year, with OIBDA margins rising to 23.9% on subscription pricing gains and streaming growth. Global streaming share increased to about 25% in Q2 from 20% a year earlier, bolstered by major artist releases and AI partnerships.
1. Fiscal 2026 Outlook
Projected revenue of $7.1 billion reflects a 6% year-over-year increase, driven by higher subscription pricing and stream count growth. Operating income before depreciation and amortization margin is expected to expand to 23.9% as digital service providers implement further price increases.
2. Streaming Share Momentum
Global streaming share climbed to approximately 25% in the second quarter, up from about 20% a year earlier. Within the U.S., share gains have been supported by major releases from Bruno Mars, Coldplay, Ed Sheeran and Arctic Monkeys.
3. AI Partnership Upside
Recent agreements with artificial intelligence platforms are positioned to open new monetization channels beginning in fiscal 2027, providing potential upside beyond the core streaming and publishing businesses.
4. Valuation and Outlook
The company trades below peer multiples, offering an attractive risk-reward profile. A maintained buy rating with a $40 price target suggests significant upside if projected growth and margin improvements are realized.