Warner Music Group posted $1.8 billion in revenue for its first quarter ended December 31, 2025, the company reported on Thursday, a 10 percent jump from a year ago.
Net income fell 27 percent though, to $175 million from $241 million last year, with the company attributing the drop in exchange rates on debt and loans. WMG’s recorded music revenues from its labels rose 10 percent to about $1.48 billion, while revenues from music publishing rose 12 percent to $362 million.
“2026 is off to a strong start as our creative success continues to fuel consistent market share growth and financial performance,” said Robert Kyncl, CEO, Warner Music Group. “We have an exciting slate of new music ahead and are leading the charge with AI to drive a step change in value creation for artists, songwriters, and shareholders, ensuring that WMG is well-positioned for long-term success.”
During the call, Kyncl lauded high-profile synchs like with Stranger Things, which featured WMG artists Prince’s “Purple Rain” and David Bowie’s Heroes in the series finale, driving more streams to both songs.
AI was a frequent topic on the earnings call as well. WMG had closed deals with AI music platforms Suno and Udio last year, and CFO Armin Zerza said the company would begin to see financial benefit from those deals this fiscal year, with more material earnings expected in 2027.
WMG’s earnings report comes as the company expects new music from stars including Bruno Mars, whose upcoming fourth album The Romantic will drop on February 27. Fellow heavy-hitter Zach Bryan released his latest album With Heaven on Top through Warner Records in January, with the album debuting atop Billboard’s 200 Albums chart. Others with new music on the way include Charli XCX, best new artist nominees Sombr and Alex Warren and Charlie Puth amongh others.
The report arrives a day after WMG and Bain Capital, who established a $1.2 billion catalog acquisition joint venture together last year, revealed in an SEC filing that they’d committed another $200 million for that vehicle.