Compared to Estimates, Warner Music Group (WMG) Q1 Earnings: A Look at Key Metrics

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Compared to Estimates, Warner Music Group (WMG) Q1 Earnings: A Look at Key Metrics

For the quarter ended December 2025, Warner Music Group Corp. (WMG) reported revenue of $1.84 billion, up 10.4% over the same period last year. EPS came in at $0.33, compared to $0.45 in the year-ago quarter.

The reported revenue represents a surprise of +3.95% over the Zacks Consensus Estimate of $1.77 billion. With the consensus EPS estimate being $0.40, the EPS surprise was -16.69%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Warner Music Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Total Recorded Music: $1.48 billion versus the two-analyst average estimate of $1.43 billion. Revenue- Music Publishing: $362 million versus the two-analyst average estimate of $343.46 million. Revenue- Corporate expenses and eliminations: $-2 million versus $-2.05 million estimated by two analysts on average. Revenue- Recorded Music- Digital: $976 million versus $944.83 million estimated by two analysts on average. Revenue- Recorded Music- Physical: $152 million compared to the $157.21 million average estimate based on two analysts. Revenue- Recorded Music- Total Digital and Physical: $1.13 billion versus the two-analyst average estimate of $1.1 billion. Revenue- Music Publishing- Other: $5 million compared to the $5.43 million average estimate based on two analysts. Revenue- Recorded Music- Licensing: $121 million versus $113.85 million estimated by two analysts on average. Revenue- Music Publishing- Performance: $64 million compared to the $58.25 million average estimate based on two analysts. Revenue- Music Publishing- Digital: $215 million versus the two-analyst average estimate of $224.31 million. Revenue- Music Publishing- Mechanical: $18 million versus the two-analyst average estimate of $13.91 million. Revenue- Music Publishing- Synchronization: $60 million versus $41.56 million estimated by two analysts on average.

View all Key Company Metrics for Warner Music Group here>>>

Shares of Warner Music Group have returned -5.3% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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