Universal Music Group (UMG) reported revenues of €2.9 billion (approximately $3.39 billion) for the first quarter ended March 31, 2026.
This represents an 8.1% year-on-year (YoY) increase at constant currency, supported by strong streaming growth, physical sales, and strategic acquisitions.
The world’s largest music company said growth was driven by the consolidation of Downtown Music Holdings, early gains from its Streaming 2.0 pricing model, and improved synchronization income across its recorded music and publishing divisions.
What they are saying
An excerpt from its financial statement published on the UMG website on Wednesday, April 29, 2026, reads,
- “Revenue of €2,900 million was flat year-over-year, while it grew 8.1% in constant currency, with the consolidation of Downtown Music Holdings (“Downtown”), initial pricing benefits of Streaming 2.0 agreements, strong physical sales and healthy synchronization income contributing to growth in Recorded Music and Music Publishing.
- “Recorded Music subscription revenue grew 4.1% year-over-year, or 12.5% in constant currency, benefitting from the consolidation of Downtown, as well as from initial pricing”.
Adjusted EBITDA for the quarter came in at €636 million ($744.3 million), translating to a margin of 21.9%, as the company continued to balance growth investments with profitability.
A major driver of performance was UMG’s recorded music subscription revenue, which rose 12.5% YoY at constant currency to €1.303 billion ($1.52 billion). This growth was supported by both pricing improvements under new streaming agreements and contributions from the Downtown acquisition.
Total recorded music revenue climbed 8.9% YoY to €2.253 billion ($2.64 billion), with streaming revenues including both subscription and ad-supported formats rising 10.9% to €1.642 billion.
Ad-supported streaming revenue grew modestly by 5% YoY to €339 million, as the company noted an ongoing shift in consumer behavior toward short-form platforms, which typically generate lower monetization per stream.
Physical music sales also posted strong growth, increasing 12.7% YoY to €310 million, driven largely by demand in key markets such as the United States and Japan.
More insight
However, some segments recorded declines. Licensing and other revenue fell 3.6% YoY due to the absence of one-off live income recorded in Q1 2025, while downloads and other digital formats dropped 5.6% amid continued industry-wide transitions away from legacy formats.
Top-performing artists for the quarter included BTS, Taylor Swift, Olivia Dean, Morgan Wallen, and the KPop Demon Hunters soundtrack, highlighting UMG’s continued dominance in global music consumption trends.
Commenting on the results, Chairman and CEO Sir Lucian Grainge said the company remains focused on long-term growth through talent acquisition, innovation, and global fan engagement.
What you should know
Universal Music Group remains the world’s largest music company, with operations spanning recorded music, publishing, and artist services.
In 2024, UMG deepened its footprint in Africa through a landmark partnership with Mavin Records, one of Nigeria’s leading music labels founded by Don Jazzy. The deal gives UMG a majority stake in Mavin, strengthening its presence in the fast-growing African music market.
Mavin Records’ roster includes globally recognized Afrobeats stars such as Rema and Ayra Starr, whose international success aligns with UMG’s strategy of expanding non-Western music markets.
