Sirius XM Holdings Inc (SIRI) AI Stock Analysis

Sirius XM Holdings Inc. provides subscription-based entertainment services across the United States. The company operates through two primary segments: Sirius XM and Pandora and Off-platform. The Sirius XM segment offers music, sports, entertainment, comedy, news, podcasts, and infotainment through satellite radio systems and mobile streaming apps, alongside automaker partnerships. The Pandora and Off-platform segment runs a music and podcast streaming service across mobile, vehicle, and connected devices, and distributes podcasts under the Stitcher brand. Sirius XM also provides connected vehicle location-based services, such as safety, security, remote diagnostics, and vehicle locator tools, in addition to satellite television.

Sirius XM grew revenue from $8.70B in FY2021 to $9.00B in FY2022, before declining to $8.95B in FY2023, $8.70B in FY2024, and $8.56B in FY2025. Gross margin decreased from 50.6% in FY2021 to 47.0% in FY2025. Operating margin dropped sharply to -17.4% in FY2024 before rebounding to 17.2% in FY2025, while net income swung from -$1.67B to $805.0M with diluted EPS of $2.86. In the latest quarter ended June 30, 2026, revenue increased 1.0% year-over-year, and earnings grew 23.7%. Over the trailing twelve months, revenue was $8.60B with an operating margin of 22.1% and net profit margin of 10.2%.

As of June 30, 2026, Sirius XM held $174.0M in cash and short-term investments against total debt of $9.46B, resulting in net debt of $9.28B. Shareholders' equity was $11.91B, with total assets of $27.18B. The company recorded a current ratio of 0.46 and a debt-to-equity ratio of 0.79. In FY2025, operating cash flow reached $1.90B and free cash flow stood at $1.25B. Cash deployment in FY2025 included $653.0M in capital expenditures, $365.0M in dividends paid, and $136.0M directed toward share buybacks.

Sirius XM trades at a trailing P/E of 10.8x and a forward P/E of 8.1x, below the median of its US-listed Communication Services peers at 16.2x and 14.1x, respectively. Its EV to EBITDA ratio stands at 8.1x versus the peer median of 10.0x, while its price-to-sales multiple is 1.1x compared to the peer median of 0.8x. Over the past year, the stock returned 32.2%, outperforming the S&P 500 return of 16.8%. However, over a 5-year period, Sirius XM returned -45.9% compared to an 83.0% gain for the S&P 500.

Sirius XM pays a quarterly dividend with an annualized forward rate of $1.08, representing a dividend yield of 4.00%. The company has paid dividends for 11 consecutive years, delivering a 5-year annualized dividend growth rate of 14.9%. Its payout ratio stands at 34.4%, with the most recent ex-dividend date on August 10, 2026.

Wall Street coverage consists of 4 Strong Buy, 2 Buy, 5 Hold, 1 Sell, and 2 Strong Sell ratings. The mean price target is $33.23, representing an upside of 23.2% from the last close of $26.97. For FY2026, analysts estimate revenue of $8.59B and EPS of $2.97, reflecting 33.1% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings date is October 29, 2026.

This page is an AI-written research summary of Sirius XM Holdings Inc (SIRI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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