Warner Music Group's (WMG) fiscal Q4 revenue beat was driven by growth in recorded music revenue, music publishing revenue, as well as artist services and expanded rights, BofA Securities said in a Friday research report.

Warner Music is expected to see the benefit of per sub minimum increases from renewed deals with multiple digital service providers. The company has a robust pipeline of artist releases, while AI licensing deals offer scope for incremental revenue, according to the note.

The brokerage said the outlook is balanced, with muted trends in ad-supported streaming partly offset by potential improvement as emerging streaming deals come up later in fiscal 2026.

The firm said it raised its fiscal 2026 revenue guidance to $6.91 billion from $6.86 billion, while the adjusted operating income before depreciation and amortization forecast was $1.62 billion from $1.61 billion earlier, analysts wrote.

BofA reiterated its neutral rating on the stock and lowered its price objective to $33 per share from $36.

Shares of Warner Music were up 4.5% in recent trading.

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