Warner Music Group Corp. (NASDAQ:WMG) advanced nearly 3% in premarket trading on Thursday after the company unveiled quarterly revenue that hit an all-time high and surpassed Wall Street expectations, even as earnings fell short.
The entertainment group reported fourth-quarter revenue of $1.87 billion, well above the $1.68 billion analysts had projected. Sales rose 15% year over year (13% at constant currency), driven by strong double-digit gains in both its Recorded Music and Music Publishing divisions. Earnings per share, however, landed at $0.21, missing the consensus estimate of $0.37.
The top-line beat was supported by continued market share expansion, which helped fuel faster Recorded Music streaming growth. Streaming revenue in that segment increased 7.5% (5.8% in constant currency), with subscription revenue up 8.5% and ad-supported streaming rising 4.5%.
“With our artists and songwriters hotter than ever, market share gains drove our quarterly revenues to an all-time high,” said Robert Kyncl, CEO of Warner Music Group. “Our powerful momentum is underpinned by increasing the value of music—through volume and rate increases—and now with incremental revenue opportunities in AI.”
Music Publishing also delivered strong results, climbing 14.2% year over year. Performance revenue surged 41.9%, while synchronization revenue climbed 19.6%. Adjusted OIBDA rose 14.7% to $405 million, compared with $353 million a year earlier.
For the full fiscal year, Warner Music Group generated $6.71 billion in revenue, up 4.4% from the prior year. Looking ahead, the company said its 2026 outlook is supported by “healthy music industry trends” and a strategic plan aimed at accelerating growth, with anticipated cost savings expected to lift margins by 150 to 200 basis points.