Revenue growth remains highly sensitive to release cycles, with quarterly growth rates swinging from 16.7% in 2026Q2 to a 4.7% contraction in 2025Q1, while gross margins remain anchored near a 46% structural ceiling.
| 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 | 7.13B | 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 % | 12.55% | 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 | 3.86B | 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 | 3.27B | 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 % | 45.8% | 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 | 2.36B | 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 | 909M | 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 % | 12.75% | 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 | 1.4B | 1.16B | 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 % | 19.6% | 17.24% | 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 % | 30.44% | 0.52% | 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) | 488M | 462M | 327M | 332M | 339M | 306M | 261M | 269M | 261M | 251M | 293M | 309M | 321M | 258M | 244M | 0 | 258M | 262M | 268M | 246M | 236M | 239M | 140M | 0 | 0 |
| EBIT | 767M | 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 | -169M | -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 | 169M | 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 | -314M | -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 | 595M | 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 % | 8.35% | 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 | 146M | 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 % | 24.54% | 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 | 452M | 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 % | 6.34% | 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 % | 0% | -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) | 449M | 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 | 234M | 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) | 0.87 | 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 % | 1.49% | -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 | 519.05M | 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 | 519.05M | 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% | - | - | - | - |
High Debt Leverage Sensitivity
According to recent financial disclosures, WMG's revenue growth has fluctuated significantly, ranging from a 16.7% expansion in 2026Q2 to a 4.7% contraction in 2025Q1, suggesting that the company's top-line performance remains highly sensitive to release cycles and the timing of digital licensing renewals.
The inconsistent revenue trajectory indicates that while streaming provides a foundational floor, the company remains dependent on periodic blockbuster releases to drive meaningful growth. Investors should monitor whether the recent 16.7% growth in 2026Q2 represents a sustainable shift or merely a temporary benefit from favorable licensing timing.
As reported in quarterly filings, WMG maintains a remarkably consistent gross margin profile hovering near 46%, which appears to be a structural limitation imposed by the royalty-sharing agreements inherent in the major label business model and the high variable costs of artist compensation.
The stability of these margins suggests limited pricing power to expand profitability beyond current levels without a fundamental shift in the revenue mix toward higher-margin catalog assets. The lack of significant margin expansion despite revenue fluctuations implies that the company's cost structure is tightly coupled with its top-line performance.
Based on the provided income statement data, WMG's operating income has shown significant volatility, with margins swinging from 7.7% to 20.3% over the last ten quarters, suggesting that the company struggles to consistently scale its SG&A expenses in proportion to its gross profit generation.
The inability to maintain steady operating leverage may indicate that the company is forced to reinvest heavily in marketing and A&R to defend its market share, preventing the realization of economies of scale. This pattern warrants further investigation into whether recent headcount reductions will successfully decouple operating expenses from revenue volatility.
Analysis of the reported figures reveals that net income has experienced extreme swings, including a negative $16 million result in 2025Q3, which appears to be driven by non-operating items and fluctuating tax impacts rather than purely operational performance, complicating the assessment of true earnings quality.
The erratic nature of the bottom line suggests that investors should focus more on operating income as a proxy for core business health, as net income is frequently distorted by one-time charges. The presence of stock-based compensation in most quarters further complicates the picture, requiring careful adjustment to understand the true cash-generative capacity of the firm.
Data from recent filings highlights a high debt-to-equity ratio, which may leave the company vulnerable to interest rate fluctuations and limit its ability to compete for premium catalog acquisitions, potentially leading to long-term margin compression if the company cannot effectively service its existing debt obligations.
Short-term observers might argue that the company's reliance on debt to fund its operations creates a structural disadvantage compared to better-capitalized peers. If interest expenses continue to consume a significant portion of operating income, the company may find its ability to invest in future talent and technology severely constrained.
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.