Sirius XM (NASDAQ:SIRI) Announces Earnings Results

Sirius XM (NASDAQ:SIRI) released its quarterly earnings data on Thursday. The company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.08), FiscalAI reports. Sirius XM had a return on equity of 9.19% and a net margin of 9.86%.The business had revenue of $2.16 billion for the quarter, compared to analysts’ expectations of $2.14 billion. During the same quarter in the prior year, the firm earned $0.57 earnings per share. Sirius XM’s quarterly revenue was up 1.0% compared to the same quarter last year.

Here are the key takeaways from Sirius XM’s conference call:

• Full-year 2026 guidance was raised by $25 million for revenue, adjusted EBITDA, and free cash flow, now targeting approximately $8.525 billion, $2.625 billion, and $1.375 billion, respectively.
• SiriusXM returned to positive self-pay net additions with 22,000 in Q2, while ARPU rose 1% to $15.32 and churn reached a company-record low of approximately 1.4%; management nonetheless expects modestly lower full-year net additions as promotional activity is reduced and favorable continuous-service comparisons fade.
• Advertising revenue grew 5% to $454 million, led by approximately 30% podcasting growth, stronger programmatic advertising, and technology fees. Management expects broader commercialization of YouTube Audio later this year, though it does not anticipate a meaningful financial contribution until the second half of 2027.
• Cost discipline expanded adjusted EBITDA 3% to $691 million and lifted margins to 32%, while free cash flow surged 48% to $593 million. The company has captured $74 million of its targeted $100 million in 2026 gross cost savings.
• SiriusXM reached its target leverage range at 3.4 times adjusted EBITDA, allowing share repurchases to become a larger use of excess cash, with nearly $1 billion remaining under authorization. Management continues to evaluate partnerships to monetize its 35 MHz spectrum portfolio while preserving service flexibility, but provided no timing or transaction details.

Sirius XM Stock Down 2.2%

SIRI traded down $0.69 during trading hours on Friday, reaching $30.27. 560,447 shares of the stock traded hands, compared to its average volume of 5,038,502. Sirius XM has a fifty-two week low of $19.76 and a fifty-two week high of $32.66. The company has a market cap of $10.19 billion, a price-to-earnings ratio of 12.76, a PEG ratio of 0.70 and a beta of 0.95. The company has a debt-to-equity ratio of 0.83, a current ratio of 0.44 and a quick ratio of 0.44. The firm’s fifty day simple moving average is $29.34 and its two-hundred day simple moving average is $25.30.

Sirius XM Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Investors of record on Monday, August 10th will be issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Monday, August 10th. Sirius XM’s dividend payout ratio (DPR) is presently 45.57%.

Key Headlines Impacting Sirius XM

Here are the key news stories impacting Sirius XM this week:

• Positive Sentiment: Sirius XM returned to positive net subscriber growth, adding 22,000 subscribers, while reporting historically low churn. Advertising performance and free cash flow were also described as strong. Sirius XM Q2 2026 earnings call highlights
• Positive Sentiment: Management raised its 2026 targets, including approximately $8.525 billion in revenue and $1.375 billion in free cash flow; the free-cash-flow outlook was increased by $25 million. SiriusXM 2026 targets
• Positive Sentiment: The company launched a $5-per-month Sports Pass featuring sports audio content, including WWE Radio. The offering could broaden Sirius XM’s appeal and create another subscription revenue opportunity. SiriusXM sports plan
• Neutral Sentiment: Wells Fargo upgraded Sirius XM, while Rosenblatt Securities reiterated a Buy rating, signaling that some analysts view the valuation and cash-flow profile favorably despite near-term execution concerns. Sirius XM upgraded at Wells Fargo
• Negative Sentiment: Second-quarter EPS was $0.70, below the $0.78 consensus estimate, although revenue of $2.16 billion modestly exceeded expectations and increased 1% year over year. The earnings shortfall and underwhelming outlook are the primary reasons the stock has decreased. SiriusXM shares after second-quarter earnings
• Negative Sentiment: Chief Operating Officer Wayne Thorsen is leaving amid a restructuring, adding leadership-transition uncertainty as Sirius XM works to improve growth and profitability. Sirius XM COO departure

Analyst Ratings Changes

A number of brokerages have recently commented on SIRI. Weiss Ratings raised shares of Sirius XM from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 9th. Wells Fargo & Company set a $30.00 price target on shares of Sirius XM and gave the stock an “equal weight” rating in a research report on Monday. Morgan Stanley increased their price target on Sirius XM from $24.00 to $28.00 and gave the company an “underweight” rating in a report on Tuesday, July 21st. Bank of America reissued an “underperform” rating on shares of Sirius XM in a research report on Friday. Finally, Guggenheim restated a “buy” rating and set a $35.00 price objective (up from $34.00) on shares of Sirius XM in a research note on Friday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $29.73.

Insider Buying and Selling

In other Sirius XM news, insider Scott Andrew Greenstein sold 20,744 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $29.83, for a total value of $618,793.52. Following the completion of the transaction, the insider directly owned 20,163 shares of the company’s stock, valued at $601,462.29. This represents a 50.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 3.27% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Brighton Jones LLC purchased a new stake in Sirius XM during the 4th quarter worth approximately $622,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Sirius XM by 11.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 925,313 shares of the company’s stock worth $20,861,000 after buying an additional 92,111 shares in the last quarter. Focus Partners Wealth grew its position in shares of Sirius XM by 5.2% during the first quarter. Focus Partners Wealth now owns 16,273 shares of the company’s stock worth $367,000 after buying an additional 800 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Sirius XM by 36.7% in the first quarter. Geneos Wealth Management Inc. now owns 1,836 shares of the company’s stock worth $41,000 after buying an additional 493 shares during the last quarter. Finally, Sivia Capital Partners LLC acquired a new stake in Sirius XM in the second quarter valued at $208,000. Institutional investors and hedge funds own 10.69% of the company’s stock.

Sirius XM Company Profile

Sirius XM Holdings Inc is a leading audio entertainment company specializing in subscription-based satellite and streaming radio services. Formed in 2008 through the merger of Sirius Satellite Radio and XM Satellite Radio, the company delivers a broad range of programming across music, sports, news, talk and comedy channels. Sirius XM’s offerings include exclusive live sports play-by-play, artist-curated music channels, news coverage from major networks and original talk and entertainment series.

Headquartered in New York City, Sirius XM serves listeners throughout the United States and Canada, reaching tens of millions of subscribers.