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

Sirius XM (NASDAQ:SIRI) announced its quarterly earnings results on Thursday. The company reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.08), FiscalAI reports. The company had revenue of $2.16 billion during the quarter, compared to analysts’ expectations of $2.14 billion. Sirius XM had a net margin of 10.23% and a return on equity of 9.37%. Sirius XM’s revenue was up 1.0% on a year-over-year basis. During the same period last year, the firm earned $0.57 earnings per share.

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 Performance

Shares of NASDAQ SIRI traded down $1.35 during midday trading on Friday, reaching $29.62. 5,206,729 shares of the company were exchanged, compared to its average volume of 3,661,686. The company has a current ratio of 0.46, a quick ratio of 0.44 and a debt-to-equity ratio of 0.79. Sirius XM has a 1 year low of $19.76 and a 1 year high of $32.66. The stock has a fifty day simple moving average of $29.36 and a 200 day simple moving average of $25.33. The stock has a market cap of $9.97 billion, a P/E ratio of 11.85, a PEG ratio of 0.67 and a beta of 0.95.

Sirius XM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Monday, August 10th will be paid a dividend of $0.27 per share. The ex-dividend date is Monday, August 10th. This represents a $1.08 annualized dividend and a dividend yield of 3.6%. Sirius XM’s dividend payout ratio is 45.57%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Wells Fargo & Company lifted their target price on Sirius XM from $30.00 to $31.00 and gave the stock an “equal weight” rating in a research report on Friday. Morgan Stanley upped their target price on Sirius XM from $24.00 to $28.00 and gave the company an “underweight” rating in a research report on Tuesday, July 21st. Rosenblatt Securities reaffirmed a “buy” rating and set a $45.00 price target on shares of Sirius XM in a research report on Tuesday. Barrington Research lifted their price target on Sirius XM from $28.00 to $32.00 and gave the stock an “outperform” rating in a research report on Monday, May 4th. Finally, Weiss Ratings raised Sirius XM from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 9th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $30.82.

Sirius XM News Summary

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

• Positive Sentiment: Sirius XM reported 1% year-over-year revenue growth to approximately $2.16 billion, exceeding estimates, while adjusted EBITDA rose 3% and free cash flow increased 48%. The company also returned to positive net subscriber growth, adding 22,000 subscribers, and reported a record-low 1.4% churn rate. 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. Falling leverage toward the 3.4x target could allow Sirius XM to restart share repurchases, supporting the stock’s valuation and per-share cash-flow outlook. SiriusXM outlines 2026 targets
• Positive Sentiment: JPMorgan raised its price target from $26 to $34 while maintaining a neutral rating, and Wells Fargo lifted its target from $30 to $31 with an equal-weight rating. These changes suggest improved expectations, although neither firm adopted a bullish rating. Analyst price-target updates
• Neutral Sentiment: The company launched a $5-per-month Sports Pass featuring sports audio and WWE Radio. The offering could broaden Sirius XM’s subscriber base and advertising opportunities, but its financial impact has not yet been demonstrated. SiriusXM sports plan
• Negative Sentiment: Second-quarter adjusted earnings of $0.70 per share missed the $0.78 consensus estimate, even though earnings improved from $0.57 a year earlier. The earnings shortfall outweighed the revenue beat and prompted the post-results selloff. Sirius XM Q2 earnings miss
• Negative Sentiment: Investors viewed the revised 2026 outlook as insufficiently strong relative to expectations, with revenue guidance around $8.5 billion versus consensus near $8.6 billion. The departure of COO Wayne Thorsen amid restructuring adds an additional execution and leadership uncertainty. SiriusXM shares slide after earnings

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 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 sale, 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.27% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of SIRI. Rossby Financial LCC lifted its holdings in shares of Sirius XM by 57.7% during the fourth 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 period. Caitong International Asset Management Co. Ltd acquired a new position in Sirius XM in the 4th quarter valued at $40,000. Jessup Wealth Management Inc purchased a new position in Sirius XM during the 4th quarter worth $40,000. Geneos Wealth Management Inc. lifted its stake in shares of Sirius XM by 36.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,836 shares of the company’s stock worth $41,000 after acquiring an additional 493 shares during the period. Finally, Itau Unibanco Holding S.A. lifted its stake in shares of Sirius XM by 31.4% in the 4th quarter. Itau Unibanco Holding S.A. now owns 2,625 shares of the company’s stock worth $52,000 after acquiring an additional 627 shares during the period. Institutional investors and hedge funds own 10.69% of the company’s stock.

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.