Sirius XM (NASDAQ:SIRI) Announces Earnings Results, Misses Estimates By $0.08 EPS

Sirius XM (NASDAQ:SIRI) released its earnings results on Thursday. The company reported $0.70 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.08), FiscalAI reports. Sirius XM had a net margin of 9.86% and a return on equity of 9.19%. The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the previous year, the company earned $0.57 earnings per share. Sirius XM’s revenue for the quarter 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 Price Performance

NASDAQ SIRI traded down $1.62 during trading on Thursday, reaching $30.97. 7,774,712 shares of the company traded hands, compared to its average volume of 3,528,533. Sirius XM has a 1-year low of $19.76 and a 1-year high of $32.66. The company has a market cap of $10.43 billion, a price-to-earnings ratio of 13.07, a P/E/G ratio of 0.70 and a beta of 0.95. The stock’s 50 day moving average price is $29.34 and its two-hundred day moving average price is $25.30. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.44 and a current ratio of 0.44.

Sirius XM Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders 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 3.5%. The ex-dividend date of this dividend is Monday, August 10th. Sirius XM’s payout ratio is presently 45.57%.

Key Sirius XM News

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 record-low churn. Management also highlighted strong advertising performance and free cash flow. Sirius XM Q2 2026 earnings call highlights
• Positive Sentiment: Management raised its 2026 outlook, targeting approximately $8.525 billion in revenue and $1.375 billion in free cash flow, with the revenue outlook reportedly increased by $25 million. SiriusXM outlines 2026 targets
• Positive Sentiment: The company announced a $5-per-month Sports Pass featuring sports audio and content including WWE Radio, creating a potentially attractive low-cost offering to broaden engagement and subscriber monetization. SiriusXM sports plan
• Positive Sentiment: Wells Fargo upgraded Sirius XM, while Rosenblatt Securities reiterated a Buy rating, providing additional analyst support. Wells Fargo upgrade
• Neutral Sentiment: Revenue increased 1% year over year to $2.16 billion, exceeding the $2.14 billion consensus estimate, but growth remained limited. Sirius XM Q2 sales results
• Negative Sentiment: Adjusted earnings of $0.70 per share fell short of the $0.78 analyst consensus, an earnings surprise of roughly negative 10%, making the profit miss the primary pressure on the stock. Sirius XM misses Q2 earnings estimates
• Negative Sentiment: Chief Operating Officer Wayne Thorsen is departing amid a restructuring, introducing leadership-transition uncertainty as Sirius XM works to improve operating performance. Sirius XM COO departure

Insider Activity at Sirius XM

In related news, insider Scott Andrew Greenstein sold 20,744 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $29.83, for a total transaction of $618,793.52. Following the completion of the transaction, the insider owned 20,163 shares in the company, valued at $601,462.29. This trade represents a 50.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 3.27% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Rossby Financial LCC grew its holdings in shares of Sirius XM by 57.7% in the 4th quarter. Rossby Financial LCC now owns 1,621 shares of the company’s stock worth $32,000 after purchasing an additional 593 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Sirius XM during the 4th quarter worth approximately $40,000. Jessup Wealth Management Inc acquired a new stake in Sirius XM during the 4th quarter valued at $40,000. Geneos Wealth Management Inc. increased its holdings in Sirius XM by 36.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,836 shares of the company’s stock valued at $41,000 after purchasing an additional 493 shares in the last quarter. Finally, Itau Unibanco Holding S.A. raised its position in Sirius XM by 31.4% in the 4th quarter. Itau Unibanco Holding S.A. now owns 2,625 shares of the company’s stock valued at $52,000 after purchasing an additional 627 shares during the last quarter. 10.69% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on SIRI shares. Citigroup restated a “sell” rating and set a $22.00 price objective (up from $19.00) on shares of Sirius XM in a report on Monday, May 4th. Guggenheim restated a “buy” rating on shares of Sirius XM in a research note on Wednesday, June 17th. Benchmark reaffirmed a “buy” rating on shares of Sirius XM in a report on Wednesday. Wells Fargo & Company set a $30.00 price objective on Sirius XM and gave the stock an “equal weight” rating in a research report on Monday. Finally, Rosenblatt Securities reissued a “buy” rating and set a $45.00 price objective on shares of Sirius XM in a report on Tuesday. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Sirius XM has an average rating of “Hold” and an average target price of $29.64.

About Sirius XM

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.