--- title: "Warner Music Stock Rises After Preliminary Results Show Stronger Profit And Cash Flow" type: "News" locale: "en" url: "https://longbridge.com/en/news/294716551.md" description: "Warner Music Group shares rose after preliminary Q3 results showed 10% revenue growth to $1.864 billion, an 80% jump in operating income, and a 209% surge in cash flow. The company reaffirmed full-year guidance and moved its official earnings announcement to August 5." datetime: "2026-08-03T15:59:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294716551.md) - [en](https://longbridge.com/en/news/294716551.md) - [zh-HK](https://longbridge.com/zh-HK/news/294716551.md) generator: "portal-rs" --- # Warner Music Stock Rises After Preliminary Results Show Stronger Profit And Cash Flow **Warner Music Group Corp.** (NASDAQ:WMG) shares traded higher Monday after the company released preliminary third-quarter results and moved its earnings announcement to Aug. 5 from Aug. 6. The gain came alongside broader market strength as investors assessed the company’s early financial update. ## Preliminary Revenue Rises 10% Warner Music estimated third-quarter revenue increased 10% year over year to $1.864 billion, supported by growth across recorded music, publishing and digital operations. Recorded Music revenue increased 10% to $1.488 billion, while Music Publishing revenue grew 12% to $377 million. Digital revenue climbed 11% to $1.251 billion, led by 12% growth in Recorded Music streaming revenue to $1.001 billion. Music Publishing digital revenue rose 15% to $235 million. ## Operating Performance Lifts Profit And Cash Flow Operating income jumped 80% to $305 million, while adjusted OIBDA rose 16% to $433 million. Adjusted OIBDA margin expanded to 23.2% from 22.1%. GAAP EPS was estimated at 39 cents, compared with a 3-cent loss a year earlier. Adjusted EPS increased 21% to 51 cents, while adjusted net income rose to $266 million. Operating cash flow surged 209% to $142 million. Warner Music ended June with $618 million in cash and $4.71 billion in debt. ## Reaffirms Full-Year Guidance Ahead of Final Q3 Earnings The company reiterated targets for high-single-digit revenue growth, double-digit adjusted OIBDA and adjusted EPS growth, and 50% to 60% operating cash flow conversion. Warner Music expects fiscal 2026 adjusted OIBDA margin improvement at the high end of its 150-to-200-basis-point target. The preliminary, unaudited results remain subject to change. Full third-quarter results are due Aug. 5, followed by a 4:30 p.m. ET conference call. **Read Also: Warner Music Hits All The Right Notes With Blowout Quarter, Analyst Says More Growth Ahead** ## WMG Stock: Critical Levels To Watch WMG’s technical setup remains bearish, with the stock trading 6.9% below its 20-day SMA, 9.9% below its 50-day SMA and 11% below its 200-day SMA. MACD remains below its signal line with a negative histogram, while July’s death cross reinforces the cautious outlook. - **Key Resistance:** $29.50, near the longer-term moving-average cluster. - **Key Support:** $23.50, near the lower end of the 52-week range. ## WMG Earnings Preview: August 2026 Expectations Warner Music Group is set to report earnings on August 5, 2026 (confirmed). - **EPS Estimate**: 39 cents (Up from Loss of 3 cents YoY) - **Revenue Estimate**: $1.81 Billion (Up from $1.69 Billion YoY) - **Valuation**: Forward P/E of 30.9x (Indicates premium valuation relative to peers) **Analyst Consensus & Recent Actions:** The stock carries a Buy rating with an average price forecast of $40.40 (range: $36.00 to $43.00) across 6 analysts. Recent analyst moves include: - **UBS**: Buy (Raises Target to $42.00) (May 8) - **JP Morgan**: Overweight (Raises Target to $43.00) (May 8) - **Evercore ISI Group**: Outperform (Raises Target to $43.00) (May 8) **WMG Stock Price Activity:** Warner Music Group shares were up 1.29% at $26.30 at the time of publication on Monday, according to Benzinga Pro data. **Read Also: NY Fed's Williams Says Inflation Could Finally Be Turning the Corner, But Warns the Fed Is Prepared to Act Again if It Doesn't Reach 2%** *Photo: Shutterstock* ### Related Stocks - [WMG.US](https://longbridge.com/en/quote/WMG.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [JPM.US](https://longbridge.com/en/quote/JPM.US.md) - [EVR.US](https://longbridge.com/en/quote/EVR.US.md) - [SSTK.US](https://longbridge.com/en/quote/SSTK.US.md) - [JPM-M.US](https://longbridge.com/en/quote/JPM-M.US.md) - [JPM-C.US](https://longbridge.com/en/quote/JPM-C.US.md) - [JPM-D.US](https://longbridge.com/en/quote/JPM-D.US.md) - [JPM-L.US](https://longbridge.com/en/quote/JPM-L.US.md) - [8634.JP](https://longbridge.com/en/quote/8634.JP.md) - [JPM-K.US](https://longbridge.com/en/quote/JPM-K.US.md) - [JPM-J.US](https://longbridge.com/en/quote/JPM-J.US.md) ## Related News & Research - [WARNER MUSIC GROUP AGREES TO ACQUIRE REVELATOR, STATE-OF-THE-ART INDEPENDENT MUSIC PLATFORM | WMG Stock News](https://longbridge.com/en/news/281394043.md) - [Warner Music Group Corp. $WMG Shares Purchased by Royal Bank of Canada](https://longbridge.com/en/news/295906796.md) - [Warner Music Group announces BRL 0.17 dividend per unit for 3Q 2026](https://longbridge.com/en/news/295132202.md) - [Old Dominion Freight Line (ODFL) Faces Weaker Volumes And Returns, Is It Still 10% Undervalued?](https://longbridge.com/en/news/296691524.md) - [Evercore ISI Sticks to Its Buy Rating for Warner Music Group (WMG)](https://longbridge.com/en/news/294846253.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**