Warner Music Group Opens 2026 With Strong Growth and an AI-Focused Strategy

As the global music business continues to recalibrate around streaming, rights management, and emerging technologies, Warner Music Group is entering 2026 with clear momentum. Reporting results for fiscal Q1 2026 (calendar Q4 2025), the company posted solid revenue growth across recorded music and publishing, alongside improving profitability and a renewed emphasis on ethical AI as a long-term value driver.

Revenue Growth Across Recorded Music and Publishing

For the quarter ending December 31, 2025, Warner Music Group generated $1.84 billion in total revenue, up 7.1% year-over-year at constant currency. Recorded music revenue rose 6.6% to $1.48 billion, driven largely by streaming, which climbed 9.1% to $960 million. Subscription streaming remained the standout performer, increasing 10.9%, while ad-supported streaming also posted modest gains.

Music publishing also delivered strong results. Warner’s publishing arm, Warner Chappell Music, reported revenue of $362 million, up 9.4% year-over-year. Growth was fueled by digital, performance, synchronization, and mechanical income, with sync revenue jumping sharply following increased television and commercial licensing activity and the acquisition of Tempo Music.

Adjustments, Artists, and Market Dynamics

The quarter included several one-time adjustments, including digital revenue settlements and the impact of a terminated distribution agreement with BMG, as well as prior-year royalty activity tied to the Mechanical Licensing Collective. Excluding these factors, Warner said total revenue would have grown slightly faster, underscoring the underlying strength of its business.

Artist services and expanded-rights revenue rose 12.7%, helped by strong concert promotion activity in France. Major sellers during the quarter included Cardi B, Ed Sheeran, and Teddy Swims, reflecting Warner’s continued chart presence across genres.

Profitability and an AI-Led Outlook

While net income dipped to $175 million due largely to currency effects, operating income rose 26.3% and adjusted OIBDA climbed 22.2%, pointing to improved efficiency. CEO Robert Kyncl said, “2026 is off to a strong start,” emphasizing creative success and the company’s push to use AI to unlock new value for artists and songwriters. CFO Armin Zerza echoed that confidence, highlighting Warner’s third consecutive quarter of broad-based growth.

Warner Music Group enters 2026 financially strong and strategically focused, betting that streaming scale, disciplined cost management, and ethical AI partnerships will sustain long-term growth in an increasingly data-driven music economy.