Courtesy of WMG.com
Warner Music Group entered fiscal 2026 riding the wave of a blockbuster finish to last year, and the numbers suggest the momentum is holding. For the quarter ending December 31, 2025, the company posted double-digit revenue growth, fueled by strength across digital streaming, artist services, licensing, and catalog exploitation.
Total revenue for the quarter reached $1.84 billion. Digital income remained the core of that growth, rising to $978 million as streaming, platform deals, and rights expansion continued to pay off. Artist services and licensing also delivered gains, alongside improved results from sync, performance, and mechanical royalties.
That topline growth, however, didn’t fully translate to the bottom line. Net income slipped 27% to $175 million, a reminder that even in a strong market, margins remain under pressure. Still, Warner’s profitability metrics told a more optimistic story. Adjusted OIBDA surged, signaling improved operational efficiency.
On the catalog side, Warner benefited from a mix of current hits and catalog revival. Releases from Alex Warren, Ed Sheeran, Teddy Swims, and sombr leveraged the quarter. Songs featured in Stranger Things drove massive year-over-year streaming spikes, with Prince’s “Purple Rain” and David Bowie’s “Heroes” seeing triple-digit growth following their appearances in the series.
Executives framed the quarter as evidence of a broader strategic shift. Warner has spent the past year renegotiating deals with major digital service providers, pushing the industry toward pricing structures that prioritize sustainable growth. A renewed agreement with TikTok, featuring improved economics, further strengthened that position.
Artificial intelligence also loomed large in the company’s outlook. Through partnerships with emerging AI platforms and expanded in-house tools, Warner is using the technology to accelerate discovery, marketing, and catalog engagement, which is an approach the company sees as central to long-term growth.
With market share rising on key streaming charts and a busy release calendar ahead, Warner Music Group appears determined to make 2026 memorable as they get back on track.
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