Warner Music Group Corp. (Warner Music (WMG)) shares jumped on Friday after the music giant delivered a second-quarter performance that had analysts reaching for their calculators — and raising their price targets.

The company reported revenue of $1.732 billion for the quarter ended March 31, 2026, easily beating the $1.612 billion analysts were expecting. Earnings came in at $0.35 per share, ahead of the consensus estimate of $0.27. Total revenue rose 17% year over year (or 12% in constant currency), with growth across both recorded music and music publishing.

Adjusted OIBDA climbed 31% year over year (24% in constant currency) to $397 million, reflecting what the company described as improved operating leverage and cost discipline. In other words, Warner Music is not just growing — it's growing profitably.

Streaming: The Engine That Keeps Humming

The growth was fueled by accelerating streaming performance, with higher per-subscriber pricing and continued market share gains. Management also highlighted ongoing cost-saving initiatives that helped expand margins. The company now expects full-year margin expansion to land at the high end of its previously guided range of 150 to 200 basis points.

Bain Joint Venture: Building a Catalog for the Long Haul

Warner Music also made strategic progress through its joint venture with Bain Capital, which deployed $650 million to acquire recorded music and music publishing catalogs. The company said these acquisitions strengthen its long-term content portfolio and reinforce future revenue opportunities tied to owned intellectual property.

Balance Sheet Snapshot

As of March 31, 2026, Warner Music had $741 million in cash and equivalents and $4.719 billion in total debt.

Analysts Turn Up the Volume

Following the results, analysts got more bullish on the stock.

Guggenheim Partners analyst Michael Morris raised his price target to $36 from $34 while maintaining a Buy rating. He said Warner Music delivered results that "significantly exceeded expectations," and the higher valuation reflects an improved earnings growth outlook, supported by continued subscription streaming momentum and cost-efficiency measures.

Morris also noted that Warner Music is well-positioned to benefit from the broader adoption of artificial intelligence. According to him, the company's proprietary content library should remain a key driver of consumer demand as music distribution models evolve.

Separately, Evercore ISI analyst Vijay Jayant raised his price target to $43 from $37 while maintaining an Outperform rating.

Price Action

Warner Music shares were up 5.69% at $32.80 at the time of publication on Friday.