Q3 2026 Results Highlights1
Subscription growth accelerated, core margins expanded, and Downtown broadened UMG's artist and label services capabilities
- Revenue growth flowing from core momentum plus Downtown contribution: Revenue of €3,394 million grew 12.3% year-over-year, or 11.7% in constant currency. Excluding Downtown, revenue grew 5.3% in constant currency. The company is successfully integrating Downtown's broad capabilities across the broader group.
- Subscription growth accelerated: Recorded Music subscription revenue grew 19.2% in constant currency, or 9.5% excluding Downtown, supported by wholesale price increases and continued healthy subscriber growth. Ad-supported streaming revenue grew 4.7% excluding Downtown, and physical revenue increased 17.4%.
- Disciplined execution resulted in margin progression: The company further progressed on various efficiency initiatives, which contributed to total UMG Adjusted EBITDA growing 9.0% in constant currency, and Adjusted EBITDA excluding Downtown growing 7.0%, with margin expanding 0.4 percentage points to 22.4%.
- Creative performance was broad across genres, geographies, and generations: Top sellers included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles. Physical growth was broad-based across North America, Japan and Europe, and across both frontline and catalog.
1 This press release includes certain alternative performance indicators which are not defined in the IFRS Accounting Standards ('IFRS') issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release. |
HILVERSUM, Netherlands, Oct. 29, 2026 /PRNewswire/ -- Universal Music Group N.V. ("UMG" or "the Company") today announced its financial results for the third quarter and nine months ended September 30, 2026.
"Our results show the enduring value of backing extraordinary artists, bold ideas, and the teams and technology that help bring their work to the world," said Sir Lucian Grainge, Chairman and CEO of Universal Music Group. "The industry is healthy and growing, and we will keep evolving from a position of strength. We are investing in human artistry, improving the economics of streaming, and expanding what's possible for artists and fans. To support that strategy, we are making UMG faster and more focused so we can operate more efficiently and drive sustained growth and long-term value."
"This quarter showed clear progress: subscription revenue growth accelerated, and Adjusted EBITDA margin excluding Downtown expanded by 40 basis points, led by stronger margins in Recorded Music," said Matt Ellis, UMG's CFO. "We are focused on sustaining that progress, capturing the strategic and financial benefits of Downtown, and improving efficiency across the whole company."
UMG Results
Three Months Ended | % | % | % | Nine Months Ended | % | % | % | ||||
(millions of euros) | 2026 | 2025 | YoY | const. | const. | 2026 | 2025 | YoY | const. | const. | |
(unaudited) | (unaudited) | ||||||||||
Revenue | 3,394 | 3,021 | 12.3 % | 11.7 % | 5.3 % | 9,588 | 8,902 | 7.7 % | 11.1 % | 5.5 % | |
EBITDA | 672 | 594 | 13.1 % | 12.0 % | 9.8 % | 1,853 | 1,808 | 2.5 % | 5.3 % | 3.8 % | |
EBITDA margin | 19.8 % | 19.7 % | 0.1pp | 0.9pp | 19.3 % | 20.3 % | (1.0pp) | (0.3pp) | |||
Adjusted EBITDA | 729 | 664 | 9.8 % | 9.0 % | 7.0 % | 2,039 | 2,000 | 2.0 % | 4.8 % | 3.5 % | |
Adjusted EBITDA margin | 21.5 % | 22.0 % | (0.5pp) | 0.4pp | 21.3 % | 22.5 % | (1.2pp) | (0.4pp) | |||
1 DMG = Downtown. | |||||||||||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. Constant currency is calculated by taking current year results and comparing against prior year results restated at current year rates. |
Q3 2026 Results
Revenue for the third quarter of 2026 grew 11.7% in constant currency, which included the consolidation of Downtown. Excluding Downtown, revenue grew 5.3% in constant currency with growth in Recorded Music and Music Publishing primarily driven by:
- subscription revenue growth, including pricing benefits from Streaming 2.0 agreements;
- strong physical sales;
- higher ad-supported streaming revenue; and
- increased Music Publishing digital revenue.
Adjusted EBITDA improved 9.0% in constant currency. Excluding Downtown, Adjusted EBITDA grew 7.0% in constant currency and Adjusted EBITDA margin increased by 0.4pp to 22.4% reflecting:
- margin expansion in Recorded Music; partially offset by
- lower profitability in Music Publishing and Merchandising.
YTD 2026 Results
In the nine months ended September 30, 2026, UMG's revenue grew 11.1% in constant currency, or 5.5% excluding Downtown, with growth in Recorded Music and Music Publishing, partially offset by a decline in Merchandising, as discussed further below.
Adjusted EBITDA grew 4.8% in constant currency. Excluding Downtown, Adjusted EBITDA grew 3.5% in constant currency and Adjusted EBITDA margin declined 0.4pp year-over-year due to:
- higher contribution from artist and label services revenue within Recorded Music;
- an increase in corporate overhead, partially due to higher professional fees; and
- a loss in Merchandising.
Recorded Music
Three Months Ended | % | % | % | Nine Months Ended | % | % | % | ||||
(millions of euros) | 2026 | 2025 | YoY | const. | const. | 2026 | 2025 | YoY | const. | const. | |
(unaudited) | (unaudited) | ||||||||||
Subscriptions and streaming | 1,809 | 1,515 | 19.4 % | 17.9 % | 8.4 % | 5,208 | 4,675 | 11.4 % | 14.8 % | 6.8 % | |
of which subscription | 1,422 | 1,178 | 20.7 % | 19.2 % | 9.5 % | 4,093 | 3,627 | 12.8 % | 16.1 % | 8.0 % | |
of which streaming | 387 | 337 | 14.8 % | 13.5 % | 4.7 % | 1,115 | 1,048 | 6.4 % | 10.1 % | 2.6 % | |
Downloads and other digital | 33 | 39 | (15.4 %) | (15.4 %) | (30.8 %) | 105 | 148 | (29.1 %) | (26.6 %) | (35.0 %) | |
Physical | 392 | 341 | 15.0 % | 17.4 % | 17.4 % | 1,043 | 951 | 9.7 % | 15.2 % | 15.1 % | |
License and other | 325 | 328 | (0.9 %) | 0.3 % | (2.8 %) | 972 | 913 | 6.5 % | 10.3 % | 8.1 % | |
Recorded Music revenues | 2,559 | 2,223 | 15.1 % | 14.7 % | 7.4 % | 7,328 | 6,687 | 9.6 % | 13.3 % | 7.2 % | |
EBITDA | 608 | 521 | 16.7 % | 15.8 % | 13.5 % | 1,692 | 1,613 | 4.9 % | 7.9 % | 6.4 % | |
EBITDA margin | 23.8 % | 23.4 % | 0.4pp | 1.4pp | 23.1 % | 24.1 % | (1.0pp) | (0.1pp) | |||
Adjusted EBITDA | 640 | 553 | 15.7 % | 14.9 % | 12.7 % | 1,798 | 1,716 | 4.8 % | 7.9 % | 6.5 % | |
Adjusted EBITDA margin | 25.0 % | 24.9 % | 0.1pp | 1.2pp | 24.5 % | 25.7 % | (1.2pp) | (0.2pp) | |||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q3 2026
Recorded Music revenue grew 14.7% in constant currency, or 7.4% excluding Downtown:
- Subscription revenue grew 19.2% in constant currency, or 9.5% excluding Downtown. Wholesale price increases and continued healthy subscriber growth contributed to the performance, while market share headwinds moderated compared to the first half of 2026.
- Streaming revenue grew 13.5% in constant currency, or 4.7% excluding Downtown, with growth across several key video and digital partners, partially driven by better per-play rates.
- Downloads and other digital revenue declined 15.4% in constant currency, or 30.8% excluding Downtown, reflecting the ongoing industry-wide format shift.
- Physical revenue increased 17.4% in constant currency, both including and excluding Downtown, with broad-based strength in North America, Japan and Europe, and across frontline and catalog.
- License and other revenue was largely flat in constant currency, and declined 2.8% excluding Downtown, as growth in synchronization and audiovisual revenue was more than offset by lower live and related income.
Recorded Music Adjusted EBITDA grew 14.9% in constant currency, or 12.7% excluding Downtown. Recorded Music Adjusted EBITDA margin excluding Downtown expanded 1.2pp to 26.2% in Q3 2026, reflecting:
- lower relative A&R expense; and
- improved cost discipline across marketing and overhead; partially offset by
- pressure from revenue and repertoire mix.
Music Publishing
Three Months Ended | % | % | % | Nine Months Ended | % | % | % | ||||
(millions of euros) | 2026 | 2025 | YoY | const. | const. | 2026 | 2025 | YoY | const. | const. | |
(unaudited) | (unaudited) | ||||||||||
Digital | 370 | 327 | 13.1 % | 11.8 % | 3.9 % | 1,091 | 1,016 | 7.4 % | 10.2 % | 3.4 % | |
Performance | 118 | 115 | 2.6 % | 1.7 % | 0.0 % | 356 | 340 | 4.7 % | 6.9 % | 4.8 % | |
Synchronisation | 64 | 63 | 1.6 % | 0.0 % | (4.7 %) | 190 | 193 | (1.6 %) | 1.6 % | (2.1 %) | |
Mechanical | 26 | 26 | 0.0 % | 0.0 % | 0.0 % | 83 | 80 | 3.8 % | 5.1 % | 2.5 % | |
Other | 12 | 12 | 0.0 % | 0.0 % | (16.7 %) | 38 | 38 | 0.0 % | 2.7 % | (10.8 %) | |
Music Publishing revenues | 590 | 543 | 8.7 % | 7.5 % | 1.5 % | 1,758 | 1,667 | 5.5 % | 8.1 % | 2.7 % | |
EBITDA | 129 | 137 | (5.8 %) | (6.5 %) | (7.2 %) | 391 | 388 | 0.8 % | 3.2 % | 2.4 % | |
EBITDA margin | 21.9 % | 25.2 % | (3.3pp) | (2.1pp) | 22.2 % | 23.3 % | (1.1pp) | (0.1pp) | |||
Adjusted EBITDA | 136 | 140 | (2.9 %) | (3.5 %) | (4.3 %) | 404 | 400 | 1.0 % | 3.6 % | 2.8 % | |
Adjusted EBITDA margin | 23.1 % | 25.8 % | (2.7pp) | (1.5pp) | 23.0 % | 24.0 % | (1.0pp) | 0.0pp | |||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q3 2026
Music Publishing revenue grew 7.5% in constant currency, and grew 1.5% excluding Downtown.
- Digital revenue grew 11.8% in constant currency, and grew 3.9% excluding Downtown, reflecting subscription growth, partially offset by softer ad-supported streaming revenue;
- Performance revenue grew 1.7% in constant currency, and was flat excluding Downtown.
- Synchronization revenue was flat in constant currency, and declined 4.7% excluding Downtown, reflecting lower film and television activity, partially offset by improved advertising synchs.
- Mechanical revenue was flat in constant currency, both including and excluding Downtown.
Music Publishing Adjusted EBITDA declined 3.5% in constant currency, or 4.3% excluding Downtown. Music Publishing Adjusted EBITDA margin excluding Downtown declined 1.5pp to 24.2% in Q3 2026, reflecting a timing benefit to expenses in the prior year period.
Merchandising and Other
Three Months Ended | % | % | % | Nine Months Ended | % | % | % | ||||
(millions of euros) | 2026 | 2025 | YoY | const. | const. | 2026 | 2025 | YoY | const. | const. | |
(unaudited) | (unaudited) | ||||||||||
Merchandising and other revenues | 248 | 259 | (4.2 %) | (4.6 %) | (4.6 %) | 516 | 563 | (8.3 %) | (6.2 %) | (6.2 %) | |
EBITDA1 | 11 | 12 | (8.3 %) | (8.3 %) | (8.3 %) | (4) | 9 | nm | nm | nm | |
EBITDA margin | 4.4 % | 4.6 % | (0.2pp) | (0.2pp) | (0.8 %) | 1.6 % | (2.4pp) | (2.4pp) | |||
Adjusted EBITDA1 | 11 | 13 | (15.4 %) | (15.4 %) | (15.4 %) | (3) | 10 | nm | nm | nm | |
Adjusted EBITDA margin | 4.4 % | 5.0 % | (0.6pp) | (0.6pp) | (0.6 %) | 1.8 % | (2.4pp) | (2.4pp) | |||
1 nm: not meaningful | |||||||||||
Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. |
Q3 2026
Merchandising and Other revenue declined 4.6% in constant currency, primarily driven by:
- lower touring income compared to a prior-year quarter that included a greater number of high-profile tours; partially offset by
- growth in direct-to-consumer revenue, as we broadened the roll-out of our ship-to-home program for merchandise on certain tours.
Merchandising and Other Adjusted EBITDA of €11 million declined by €2 million due to lower revenue while Adjusted EBITDA margin declined 0.6pp to 4.4%.
Items Impacting Comparability of Results
Downtown Results
ANALYSIS OF REVENUES AND OPERATING RESULTS BY BUSINESS SEGMENT | |||||||
Q3 2026 | Nine Months Ended September 30, 2026 | ||||||
(in millions of euros) | UMG excl. | DMG1 | UMG Total | UMG excl. | DMG1 | UMG Total | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||
Revenues | |||||||
Recorded Music | 2,397 | 162 | 2,559 | 6,932 | 396 | 7,328 | |
Music Publishing | 557 | 33 | 590 | 1,670 | 88 | 1,758 | |
Merchandising & Other | 248 | - | 248 | 516 | - | 516 | |
Total UMG2 | 3,199 | 195 | 3,394 | 9,104 | 484 | 9,588 | |
Adjusted EBITDA | |||||||
Recorded Music | 628 | 12 | 640 | 1,775 | 23 | 1,798 | |
Music Publishing | 135 | 1 | 136 | 401 | 3 | 404 | |
Merchandising & Other | 11 | - | 11 | (3) | - | (3) | |
Total UMG2 | 716 | 13 | 729 | 2,013 | 26 | 2,039 | |
Adjusted EBITDA margin | 22.4 % | 6.7 % | 21.5 % | 22.1 % | 5.4 % | 21.3 % | |
EBITDA | 659 | 13 | 672 | 1,827 | 26 | 1,853 | |
EBITDA margin | 20.6 % | 6.7 % | 19.8 % | 20.1 % | 5.4 % | 19.3 % | |
1 Downtown results included are from the date of acquisition on February 20, 2026. |
2 Total UMG revenue and adjusted EBITDA include Corporate Centres and intercompany eliminations. |
RECORDED MUSIC | |||||||
Q3 2026 | Nine Months Ended September 30, 2026 | ||||||
(in millions of euros) | UMG excl. | DMG1 | UMG Total | UMG excl. | DMG1 | UMG Total | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||
Subscriptions and streaming revenue | 1,663 | 146 | 1,809 | 4,845 | 363 | 5,208 | |
of which subscription | 1,306 | 116 | 1,422 | 3,806 | 287 | 4,093 | |
of which streaming | 357 | 30 | 387 | 1,039 | 76 | 1,115 | |
Downloads and other digital revenue | 27 | 6 | 33 | 93 | 12 | 105 | |
Physical revenue | 392 | - | 392 | 1,042 | 1 | 1,043 | |
License and other revenue | 315 | 10 | 325 | 952 | 20 | 972 | |
Recorded Music revenues | 2,397 | 162 | 2,559 | 6,932 | 396 | 7,328 | |
EBITDA | 596 | 12 | 608 | 1,669 | 23 | 1,692 | |
EBITDA margin | 24.9 % | 7.4 % | 23.8 % | 24.1 % | 5.8 % | 23.1 % | |
Adjusted EBITDA | 628 | 12 | 640 | 1,775 | 23 | 1,798 | |
Adjusted EBITDA margin | 26.2 % | 7.4 % | 25.0 % | 25.6 % | 5.8 % | 24.5 % | |
1 Downtown results included are from the date of acquisition on February 20, 2026. | |||||||
MUSIC PUBLISHING | |||||||
Q3 2026 | Nine Months Ended September 30, 2026 | ||||||
(in millions of euros) | UMG excl. | DMG1 | UMG Total | UMG excl. | DMG1 | UMG Total | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||
Digital revenue | 344 | 26 | 370 | 1,024 | 67 | 1,091 | |
Performance revenue | 116 | 2 | 118 | 349 | 7 | 356 | |
Synchronisation revenue | 61 | 3 | 64 | 183 | 7 | 190 | |
Mechanical revenue | 26 | - | 26 | 81 | 2 | 83 | |
Other revenue | 10 | 2 | 12 | 33 | 5 | 38 | |
Music Publishing revenues | 557 | 33 | 590 | 1,670 | 88 | 1,758 | |
EBITDA | 128 | 1 | 129 | 388 | 3 | 391 | |
EBITDA margin | 23.0 % | 3.0 % | 21.9 % | 23.2 % | 3.4 % | 22.2 % | |
Adjusted EBITDA | 135 | 1 | 136 | 401 | 3 | 404 | |
Adjusted EBITDA margin | 24.2 % | 3.0 % | 23.1 % | 24.0 % | 3.4 % | 23.0 % | |
1 Downtown results included are from the date of acquisition on February 20, 2026. | |||||||
Conference Call Details
The Company will host a conference call to discuss these results on Thursday, October 29, 2026 at 6:15PM CET. A link to the live audio webcast will be available on investors.universalmusic.com and a link to the replay will be available after the call.
While listeners may use the webcast, a dial-in telephone number is required for investors and analysts to ask questions. Investors and analysts interested in asking questions can pre-register for a dial-in line at investors.universalmusic.com under the "Financial Reports" tab.
Cautionary Notice
This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7(1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements with respect to UMG's financial condition, results of operations, business, strategy and plans. Such forward-looking statements may be identified by the use of words such as 'profit forecast', 'expect', 'estimate', 'project', 'anticipate', 'should', 'intend', 'plan', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'optimistic', 'prospects' and similar expressions or variations on such expressions. Although UMG believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMG's control, including, but not limited to, UMG's inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMG's reliance on digital service providers, UMG's inability to execute its business strategy, the global nature of UMG's operations, changes in global economic and financial conditions, UMG's inability to protect its intellectual property and against piracy, challenges related to generative AI, UMG's inability to attract and retain key personnel, UMG's restructuring and reorganization activities, UMG's acquisitions and other investments, changes in laws and regulations (and UMG's compliance therewith) and the other risks that are described in UMG's 2025 Annual Report. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Alternative Performance Indicators
This press release includes certain alternative performance indicators which are not defined in IFRS Accounting Standards issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release.
About Universal Music Group
At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit www.universalmusic.com.
Appendix
Non-IFRS Alternative Performance Indicators and Reconciliations
Reconciliation of Adjusted EBITDA by Segment
(in millions of euros) | Recorded | Music | Merchandising | Corporate | Total UMG1 |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
Three months ended September 30, 2026 | |||||
EBITDA | 608 | 129 | 11 | (76) | 672 |
Non-cash share-based compensation expenses | 30 | 7 | - | 14 | 51 |
Integration and business transformation costs2 | 2 | - | - | 4 | 6 |
Adjusted EBITDA | 640 | 136 | 11 | (58) | 729 |
Nine months ended September 30, 2026 | |||||
EBITDA | 1,692 | 391 | (4) | (226) | 1,853 |
Non-cash share-based compensation expenses | 99 | 13 | 1 | 43 | 156 |
Integration and business transformation costs2 | 7 | - | - | 23 | 30 |
Adjusted EBITDA | 1,798 | 404 | (3) | (160) | 2,039 |
1 | Downtown results included are from the date of acquisition on February 20, 2026. |
2 | Includes integration costs related to the Downtown transaction, previously committed US listing preparation costs and certain other business transformation and capital advisory costs. |
Definitions
In this press release, UMG presents certain financial measures when discussing UMG's performance that are not measures of financial performance or liquidity under IFRS ("non-IFRS"). These non-IFRS measures (also known as alternative performance indicators) are presented because management considers them important supplemental measures of UMG's performance and believes that they are widely used in the industry in which UMG operates as a means of evaluating a company's operating performance and liquidity. UMG believes that an understanding of its sales performance, profitability, financial strength and funding requirements is enhanced by reporting the following non-IFRS measures. All non-IFRS measures should be considered in addition to, and not as a substitute for, IFRS measures of operating and financial performance as described in this press release. In addition, it should be noted that other companies may have definitions and calculations for these non-IFRS measures that differ from those used by UMG, thereby affecting comparability.
EBITDA and EBITDA margin
UMG considers EBITDA and EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance. It excludes restructuring expenses, which may impact period-to-period comparability. EBITDA margin is EBITDA divided by revenue.
To calculate EBITDA, the accounting impact of the following items is excluded from the Operating Profit:
i. amortisation of intangible assets;
ii. impairment of goodwill and other intangibles;
iii. depreciation of tangible assets including right of use assets;
iv. (gains)/losses on the sale of tangible assets, including right of use assets and intangible assets; and
v. restructuring expenses.
Adjusted EBITDA and Adjusted EBITDA margin
The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expense, integration and business transformation costs and certain one-time items, that are deemed by management to be significant and incidental to normal business activity. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.
UMG considers Adjusted EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance and performance of its operating segments excluding items that may be incidental to normal business activity and excluding non-cash share-based compensation expense which may impact period-to-period comparability.
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SOURCE Universal Music Group N.V.
