Warner Music Group Revenue Up 10% Driven by Streaming & AI Deals

Warner Music Group is reporting a strong start to 2026, with quarterly revenue increasing by 10% to $1.84 billion, according to reports released on Thursday, February 5th. The growth is attributed to successes across recorded music, publishing, and streaming, with key contributions from artists like Alex Warren and sombr.

CEO Robert Kyncl described the company as “humming,” highlighting consistent streaming revenue growth and market share gains. He stated, “2026 is off to a strong start as our creative success continues to fuel consistent market share growth and financial performance,” emphasizing the company’s positive trajectory.

The results, covering the three months ended December 31, 2025, show overall digital revenue rose 10%, with streaming revenue up 10.7%. Specifically, recorded music digital revenue increased by 10.9%, and music publishing streaming revenue saw a 12.8% rise, even after accounting for settlements with digital streaming partners and the termination of a distribution agreement with BMG.

Streaming subscriptions were a significant driver, increasing by 9% when factoring in the aforementioned adjustments. This reflects WMG’s growing market share and the chart performance of its artists. According to the report, Alex Warren held a 3.9% share of the Billboard Hot 100 and a 2.8% share of the Billboard Global 200 in the fourth quarter, while sombr captured 1.9% of the Hot 100 and 2.3% of the Billboard Global 200.

Overall recorded music revenue climbed 10% to $1.48 billion, fueled by a 10.5% increase in digital revenue to $976 million, which offset a $14 million decline in physical music sales.

Looking ahead, WMG is making significant investments, particularly in music catalogs. A 50-50 joint venture with Bain Capital, established in mid-2025, is now valued at approximately $1.65 billion. The company plans to deploy a substantial portion of these funds towards catalog acquisitions throughout the year. CFO Armin Zerza stated the company plans to “deploy a significant portion of the JV’s total capacity by the end of the fiscal year.”

The company is also leveraging the success of catalog placements in popular media. For example, the inclusion of Prince’s “Purple Rain” and David Bowie’s “Heroes” in Netflix’s Stranger Things led to a resurgence in their popularity. Following the episodes’ airing, “Purple Rain” re-entered the Billboard Hot 100 for the first time in a decade, with weekly streams increasing sixfold. “Heroes” saw a nearly 2.5x increase in weekly streaming activity.

WMG is also at the forefront of integrating Artificial Intelligence (AI) into its operations. The company has reached licensing agreements with two leading AI music generation platforms, Suno and Udio, effectively resolving prior lawsuits filed by Universal Music Group and others. Kyncl has emphasized the importance of shaping these AI models to benefit the commercial music industry. The partnership with Suno is expected to be a “material top and bottom line growth driver” starting in fiscal 2027.

WMG is utilizing AI in A&R to discover new artists, and is working with streaming platforms to track artist exposure, improve consumer engagement, and identify opportunities for remixes and music videos. Zerza noted that many artists and songwriters are already using AI tools for more data-driven marketing and real-time forecasting.

The company anticipates a strong release schedule in the coming months, beginning with Bruno Mars’ fourth studio album, slated for release in late February. Additional releases are planned from Charli xcx, Kehlani, sombr, Alex Warren, and Fred Again..