Revenue growth accelerated to 10.4% in 2026Q3, with operating margin expanding to 16.4% from 10.0% a year earlier, though net income remains volatile (swinging from -$16M to $204M).
Warner Music Group Corp. (WMG) annual income statement — 24-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 |
|---|
| Sales/Revenue | 7.3B | 6.71B | 6.43B | 6.04B | 5.92B | 5.3B | 4.46B | 4.47B | 4B | 3.58B | 3.25B | 2.97B | 3.03B | 2.87B | 2.78B | 2.87B | 2.98B | 3.2B | 3.49B | 3.38B | 3.52B | 3.5B | 1.77B | 3.38B | 3.29B |
| Revenue Growth % | 12.91% | 4.37% | 6.44% | 1.99% | 11.66% | 18.78% | -0.27% | 11.74% | 12% | 10.17% | 9.44% | -2.02% | 5.43% | 3.27% | -3.1% | -3.85% | -6.69% | -8.39% | 3.13% | -3.73% | 0.4% | 97.97% | -47.6% | 2.61% | - |
| Cost of Goods Sold | 3.96B | 3.63B | 3.35B | 3.18B | 3.08B | 2.74B | 2.33B | 2.4B | 2.17B | 1.93B | 1.71B | 1.51B | 1.57B | 1.49B | 1.46B | 1.8B | 1.57B | 1.72B | 1.83B | 1.82B | 1.82B | 1.85B | 944M | 0 | 1.87B |
| COGS % of Revenue | - | 54.15% | 52.21% | 52.63% | 52.04% | 51.73% | 52.27% | 53.65% | 54.21% | 54% | 52.59% | 50.94% | 51.87% | 51.97% | 52.34% | 62.77% | 52.68% | 53.75% | 52.48% | 53.86% | 51.82% | 52.83% | 53.36% | - | 56.93% |
| Gross Profit | 3.34B | 3.08B | 3.07B | 2.86B | 2.84B | 2.56B | 2.13B | 2.07B | 1.83B | 1.65B | 1.54B | 1.46B | 1.46B | 1.38B | 1.32B | 1.07B | 1.41B | 1.48B | 1.66B | 1.56B | 1.69B | 1.65B | 825M | 3.38B | 1.42B |
| Gross Margin % | 45.77% | 45.85% | 47.79% | 47.37% | 47.96% | 48.27% | 47.73% | 46.35% | 45.79% | 46% | 47.41% | 49.06% | 48.13% | 48.03% | 47.66% | 37.23% | 47.32% | 46.25% | 47.52% | 46.14% | 48.18% | 47.17% | 46.64% | 100% | 43.07% |
| Gross Profit Growth % | - | 0.13% | 7.38% | 0.74% | 10.94% | 20.14% | 2.7% | 13.09% | 11.49% | 6.89% | 5.77% | -0.14% | 5.66% | 4.08% | 24.06% | -24.36% | -4.53% | -10.85% | 6.21% | -7.79% | 2.54% | 100.24% | -75.56% | 138.25% | - |
| Operating Expenses | 2.3B | 2.38B | 2.25B | 2.07B | 2.13B | 1.95B | 2.36B | 1.72B | 1.62B | 1.42B | 1.32B | 1.33B | 1.44B | 1.3B | 1.22B | 1.04B | 1.32B | 1.34B | 1.45B | 1.35B | 1.41B | 1.57B | 807M | 0 | 2.96B |
| OpEx % of Revenue | - | 35.5% | 34.98% | 34.29% | 35.9% | 36.79% | 52.86% | 38.39% | 40.37% | 39.79% | 40.82% | 44.77% | 47.51% | 45.42% | 43.74% | 36.11% | 44.3% | 42.03% | 41.59% | 39.79% | 40.13% | 44.77% | 45.62% | - | 89.94% |
| Selling, General & Admin | 1.7B | 1.71B | 1.78B | 1.74B | 1.79B | 1.72B | 2.17B | 1.51B | 1.41B | 1.22B | 1.08B | 1.07B | 1.17B | 1.1B | 1.02B | 945M | 1.1B | 1.12B | 1.23B | 1.16B | 1.23B | 1.3B | 677M | 0 | 1.28B |
| SG&A % of Revenue | - | 25.56% | 27.64% | 28.81% | 30.17% | 32.47% | 48.6% | 33.74% | 35.23% | 34.17% | 33.33% | 36.18% | 38.72% | 38.21% | 36.8% | 32.94% | 36.96% | 34.99% | 35.32% | 34.39% | 35.04% | 37.15% | 38.27% | - | 38.97% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 667M | 472M | 331M | 339M | 229M | 190M | 208M | 206M | 201M | 243M | 255M | 266M | 207M | 193M | 0 | 219M | 225M | 219M | 183M | 179M | 267M | 130M | 0 | 1.68B |
| Operating Income | 1.04B | 694M | 823M | 790M | 714M | 609M | -229M | 356M | 217M | 222M | 214M | 127M | 19M | 75M | 109M | 32M | 90M | 135M | 207M | 215M | 283M | 84M | 18M | 3.38B | -1.54B |
| Operating Margin % | 14.31% | 10.35% | 12.81% | 13.09% | 12.06% | 11.49% | -5.13% | 7.96% | 5.42% | 6.21% | 6.59% | 4.28% | 0.63% | 2.61% | 3.92% | 1.12% | 3.02% | 4.22% | 5.93% | 6.35% | 8.05% | 2.4% | 1.02% | 100% | -46.87% |
| Operating Income Growth % | - | -15.67% | 4.18% | 10.64% | 17.24% | 365.94% | -164.33% | 64.06% | -2.25% | 3.74% | 68.5% | 568.42% | -74.67% | -31.19% | 240.63% | -64.44% | -33.33% | -34.78% | -3.72% | -24.03% | 236.9% | 366.67% | -99.47% | 318.94% | - |
| EBITDA | 1.46B | 1.07B | 1.15B | 1.12B | 1.05B | 915M | 32M | 625M | 478M | 473M | 507M | 436M | 340M | 333M | 353M | 32M | 348M | 397M | 475M | 461M | 519M | 323M | 158M | 3.38B | -1.54B |
| EBITDA Margin % | 20.02% | 15.95% | 17.9% | 18.59% | 17.79% | 17.26% | 0.72% | 13.97% | 11.94% | 13.23% | 15.62% | 14.7% | 11.23% | 11.6% | 12.7% | 1.12% | 11.66% | 12.41% | 13.61% | 13.62% | 14.76% | 9.22% | 8.93% | 100% | -46.87% |
| EBITDA Growth % | 39.37% | -6.96% | 2.5% | 6.55% | 15.08% | 2759.38% | -94.88% | 30.75% | 1.06% | -6.71% | 16.28% | 28.24% | 2.1% | -5.67% | 1003.13% | -90.8% | -12.34% | -16.42% | 3.04% | -11.18% | 60.68% | 104.43% | -95.32% | 318.94% | - |
| D&A (Non-Cash Add-back) | 417M | 376M | 327M | 332M | 339M | 306M | 261M | 269M | 261M | 251M | 293M | 309M | 321M | 258M | 244M | 0 | 258M | 262M | 268M | 246M | 236M | 239M | 140M | 0 | 0 |
| EBIT | 1.03B | 652M | 762M | 750M | 865M | 578M | -320M | 409M | 580M | 147M | 214M | 106M | -126M | -22M | 117M | 37M | 90M | 135M | 207M | 265M | 283M | 91M | 44M | 3.38B | -1.54B |
| Net Interest Income | -175M | -159M | -161M | -141M | -125M | -122M | -127M | -142M | -138M | -149M | -173M | -181M | -203M | -203M | -225M | 0 | -190M | -195M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 175M | 159M | 161M | 141M | 125M | 122M | 127M | 142M | 138M | 149M | 173M | 181M | 203M | 203M | 225M | 0 | 195M | 195M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -172M | -204M | -222M | -181M | 26M | -153M | -218M | -89M | 225M | -224M | -173M | -202M | -348M | -300M | -217M | -170M | -194M | -189M | -193M | -187M | -176M | -198M | -212M | -3.38B | 1.54B |
| Pretax Income | 873M | 490M | 601M | 609M | 740M | 456M | -447M | 267M | 442M | -2M | 41M | -75M | -329M | -225M | -108M | -138M | -104M | -54M | 14M | 28M | 107M | -114M | -208M | 0 | 0 |
| Pretax Margin % | 11.95% | 7.31% | 9.35% | 10.09% | 12.5% | 8.6% | -10.02% | 5.97% | 11.04% | -0.06% | 1.26% | -2.53% | -10.87% | -7.84% | -3.88% | -4.81% | -3.49% | -1.69% | 0.4% | 0.83% | 3.04% | -3.26% | -11.76% | - | - |
| Income Tax | 208M | 120M | 123M | 170M | 185M | 149M | 23M | 9M | 130M | -151M | 11M | 13M | -26M | -31M | 1M | 0 | 41M | 50M | 49M | 49M | 47M | 55M | 30M | 1.35B | 6.03B |
| Effective Tax Rate % | 23.83% | 24.49% | 20.47% | 27.91% | 25% | 32.68% | -5.15% | 3.37% | 29.41% | 7550% | 26.83% | -17.33% | 7.9% | 13.78% | -0.93% | 0% | -39.42% | -92.59% | 350% | 175% | 43.93% | -48.25% | -14.42% | - | - |
| Net Income | 672M | 365M | 435M | 430M | 551M | 304M | -475M | 256M | 307M | 143M | 25M | -91M | -308M | -198M | -112M | -138M | -143M | -100M | -56M | -21M | 60M | -169M | -238M | -1.35B | -6.03B |
| Net Margin % | 9.2% | 5.44% | 6.77% | 7.12% | 9.31% | 5.73% | -10.64% | 5.72% | 7.67% | 4% | 0.77% | -3.07% | -10.18% | -6.9% | -4.03% | -4.81% | -4.79% | -3.13% | -1.6% | -0.62% | 1.71% | -4.83% | -13.45% | -40.08% | -183.16% |
| Net Income Growth % | 126.26% | -16.09% | 1.16% | -21.96% | 81.25% | 164% | -285.55% | -16.61% | 114.69% | 472% | 127.47% | 70.45% | -55.56% | -76.79% | 18.84% | 3.5% | -43% | -78.57% | -166.67% | -135% | 135.5% | 28.99% | 82.41% | 77.55% | - |
| Net Income (Continuing) | 665M | 370M | 478M | 439M | 555M | 307M | -470M | 258M | 312M | 149M | 30M | -88M | -303M | -194M | -109M | -138M | -145M | -104M | -35M | -21M | 60M | -169M | -238M | -1.35B | -1.23B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 232M | 110M | 157M | 123M | 16M | 15M | 18M | 20M | 14M | 15M | 15M | 18M | 19M | 17M | 17M | 17M | 54M | 59M | 0 | 12M | 0 | 0 | 204M | 0 | 0 |
| EPS (Diluted) | 1.28 | 0.70 | 0.84 | 0.82 | 1.06 | 0.58 | -0.93 | 0.50 | 0.62 | 0.28 | 0.05 | -0.18 | -0.61 | -0.39 | -0.22 | -0.42 | -0.96 | -0.67 | -0.38 | -0.14 | 0.40 | -1.40 | -0.47 | -2.70 | -12.00 |
| EPS Growth % | 128% | -16.67% | 2.44% | -22.64% | 82.76% | 162.37% | -286% | -19.35% | 121.43% | 462.25% | 127.67% | 70.49% | -56.41% | -77.27% | 47.62% | 56.25% | -43.28% | -76.32% | -171.43% | -135% | 128.57% | -197.87% | 82.59% | 77.5% | - |
| EPS (Basic) | - | 0.70 | 0.83 | 0.82 | 1.06 | 0.58 | -0.93 | 0.50 | 0.62 | 0.28 | 0.05 | -0.18 | -0.61 | -0.39 | -0.22 | -0.42 | -0.96 | -0.67 | -0.38 | -0.14 | 0.42 | -1.48 | -0.47 | -2.70 | -12.00 |
| Diluted Shares Outstanding | 524.42M | 519.05M | 517.52M | 515.72M | 519.81M | 513.47M | 510.03M | 510M | 501.99M | 501.99M | 501.99M | 501.99M | 501.99M | 501.99M | 501.99M | 326.9M | 149.7M | 149.4M | 148.3M | 146.2M | 150.9M | 120.71M | 501.99M | 501.99M | 501.99M |
| Basic Shares Outstanding | 521.68M | 519.05M | 517.52M | 515.72M | 519.81M | 513.47M | 510.03M | 510M | 501.99M | 501.99M | 501.99M | 501.99M | 501.99M | 501.99M | 501.99M | 326.9M | 149.7M | 149.4M | 148.3M | 146.2M | 142.8M | 114.1M | 501.99M | 501.99M | 501.99M |
| Dividend Payout Ratio | - | 104.93% | 82.99% | 79.07% | 57.71% | 87.17% | - | 36.72% | 301.3% | 58.74% | - | - | - | - | - | - | - | - | - | - | 123.33% | - | - | - | - |
Quick answers to the most common questions about buying WMG stock.
For fiscal year 2025, Warner Music Group Corp. (WMG) reported total revenue of $6.71B. This represents a 103.9% increase compared to $3.29B in 2002.
Warner Music Group Corp. (WMG) is profitable, generating $365.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
Warner Music Group Corp. (WMG) reported an operating income of $694.0M, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Warner Music Group Corp. (WMG) generated $3.08B in gross profit for the year, representing a gross profit margin of 45.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Earnings volatility from impairments
Metrics are mathematically derived from official filings.
Revenue Momentum Reaccelerates
WMG's revenue growth accelerated to 10.4% in 2026Q3, up from 8.7% a year earlier, according to the latest quarterly data, suggesting sustained demand across recorded music and publishing.
The 10.4% year-over-year growth in 2026Q3 marks a clear acceleration from the 8.7% pace in 2025Q3 and the negative prints in early 2025. This uptick appears driven by organic catalog strength and new releases, though the data does not break out volume versus pricing. Investors should monitor whether this momentum persists, as the industry is cyclical and dependent on hit-driven content.
Gross Margin Stability Amid Mix Shifts
Gross margin held near 46% in 2026Q3, slightly below the 47.6% peak in 2024Q4, as reported in financial statements, indicating stable cost of revenue despite revenue growth.
Gross margin has remained remarkably stable in a tight 44.6%-47.6% band over the past ten quarters, suggesting WMG's cost structure is well-controlled. The slight dip from the 2024Q4 peak may reflect a shift toward lower-margin revenue streams or increased royalty costs. This stability provides a solid foundation for operating leverage, but any sustained compression would warrant attention.
Operating Leverage Emerges in 2026
Operating income jumped to $305M in 2026Q3, a 45% increase from the prior-year quarter, with operating margin expanding to 16.4% from 10.0%, based on reported figures, as SG&A grew slower than revenue.
The 16.4% operating margin in 2026Q3 is the highest in the ten-quarter window, up from 7.7% in 2025Q4. This leverage appears driven by SG&A growth of only 8% year-over-year versus 10.4% revenue growth, indicating overhead discipline. If WMG can sustain this efficiency, operating margins may have room to expand further, though the 2025Q4 dip to 7.7% shows quarter-to-quarter volatility.
Earnings Quality Clouded by Volatility
Net income swung from a $16M loss in 2025Q3 to $204M in 2026Q3, with EPS of $0.39, according to the income statement data, reflecting non-operating items and tax effects.
The wide swings in net income—from -$16M to $236M over the past ten quarters—suggest that reported earnings are heavily influenced by one-time items, impairments, or tax benefits. Stock-based compensation averaged around $15M per quarter, which is modest relative to net income, but the volatility in EPS growth (e.g., -111.8% in 2025Q3) indicates that investors should focus on operating income rather than net income for trend analysis.
SG&A Discipline Drives Margin Expansion
SG&A as a percentage of revenue fell to 24.4% in 2026Q3 from 27.7% in 2025Q3, as reported in the quarterly data, highlighting cost control as a key earnings driver.
The reduction in SG&A intensity is notable, with the $464M in 2026Q3 representing only a 1.5% increase from the prior-year quarter despite 10.4% revenue growth. This suggests management is effectively scaling overhead, though R&D is not separately disclosed, implying it is embedded in SG&A or COGS. The sustainability of this discipline is crucial, as any reversion to higher spending could pressure margins.
Earnings Volatility Undermines Consistency
Despite strong 2026Q3 results, WMG's operating margin swung from 7.7% in 2025Q4 to 16.4% in 2026Q3, per the income statement data, raising questions about earnings predictability.
Short-sellers might argue that the impressive 2026Q3 margins are not sustainable, given the historical volatility—operating margin ranged from 7.7% to 17.8% in the past year. The 2025Q3 net loss and the 2025Q4 margin collapse suggest that WMG's earnings are sensitive to timing of releases, impairments, or one-time costs. Investors should demand evidence that the recent margin expansion is structural rather than episodic.