Universal Music Group generated revenues of EUR €2.9 billion (USD $3.39bn) across all of its divisions (including recorded music, publishing, and more) in Q1 (the three months ending March 31, 2026).
That’s according to UMG’s fresh set of quarterly results, published today (April 29).
They reveal that UMG’s overall Q1 revenue grew 8.1% YoY at constant currency, driven by the consolidation of Downtown Music Holdings, initial pricing benefits from Streaming 2.0 agreements, strong physical sales, and synchronization income, contributing to growth in Recorded Music and Music Publishing.
Adjusted EBITDA weighed in at €636 million ($744.3m) — a margin of 21.9%.
Among the highlights in UMG’s latest results was the company’s recorded music subscription revenue, which grew 12.5% YoY at constant currency to reach €1.303 billion ($1.52bn) in Q1, benefiting from the consolidation of Downtown and initial pricing benefits from Streaming 2.0 agreements.
Physical revenue grew 12.7% YoY at constant currency to €310 million ($362.8m), with particular strength in Japan and the US.
Photo: Austin Hargrave
“We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders.”
Commenting on the Q1 earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge, said: “We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry.
“We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders. Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry.”
RECORDED MUSIC
Universal’s overall Recorded Music revenue for the first quarter of 2026 was €2.253 billion ($2.64bn), up 8.9% YoY at constant currency. Excluding Downtown, Recorded Music revenue grew 5.4% YoY at constant currency.
Within the Recorded Music segment, UMG’s ‘Subscription and streaming revenues’ (including ad-supported and subscription streaming revenues) grew 10.9% YoY at constant currency to €1.642 billion ($1.92bn).
Breaking UMG’s recorded music streaming figure down further reveals that the company’s subscription streaming revenues grew 12.5% YoY at constant currency to reach €1.303 billion ($1.52bn). Excluding Downtown, subscription revenue grew 7.9% YoY at constant currency.
Universal’s ad-supported recorded music streaming revenue reached €339 million ($396.7m), up 5.0% YoY at constant currency, though the company noted that consumers continue to shift consumption from “better-monetized video platforms to short-form platforms”.
Within Universal’s recorded music business, Physical revenue grew 12.7% YoY at constant currency to €310 million ($362.8m), with particular strength in Japan and the U.S.
‘License and other’ revenue decreased 3.6% YoY at constant currency to €267 million ($312.5m), as underlying licensing revenue growth from strong synchronization revenue “was more than offset by meaningful, non-recurring live income in the first quarter of 2025.”
Downloads and other digital revenue reached €34 million ($39.8m), down 5.6% YoY at constant currency, due to the “continued industry-wide format shift”.
Top sellers for the quarter included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.
MUSIC PUBLISHING
Universal’s overall Music Publishing revenue for the first quarter of 2026 was €552 million ($645.8m), up 7.0% YoY at constant currency. Excluding Downtown, Music Publishing revenue grew 4.3% in constant currency.
Synchronization revenue grew 15.3% YoY at constant currency to €68 million ($79.6m), driven by stronger advertising, trailers, and motion picture income.
Performance revenue increased 6.5% YoY at constant currency to €115 million ($134.6m).
Digital publishing revenue reached €328 million ($383.9m), up 4.8% YoY at constant currency, with UMg citing a “difficult comparison against strong digital growth in the prior-year quarter”.
Mechanical revenue grew 12.0% YoYat constant currency to €28 million ($32.8m), partially due to physical strength in Japan.
MERCHANDISING AND OTHER
UMG’s ‘Merchandising and Other’ revenue in the first quarter of 2026 reached €101 million ($118.2m), down 1.9% YoY at constant currency.
According to UMG, the decline was driven by lower direct-to-consumer revenue due to the timing of product releases and a decline in retail sales, partially offset by strong growth in touring income driven by tours for Lady Gaga, Conan Gray, and Nine Inch Nails, amongst others.
DOWNTOWN
Downtown Music Holdings contributed €86 million ($100.6m) in total revenue from its consolidation date of February 20 — approximately five-and-a-half weeks of the quarter.
The vast majority of Downtown’s contribution came from Recorded Music, which accounted for €72 million ($84.3m) of the total. Within that, subscription and streaming revenue reached €66 million ($77.2m), of which €54 million ($63.2m) came from subscription revenue specifically.
Downtown’s Music Publishing operations contributed €14 million ($16.4m), with digital revenue of €11 million ($12.9m) making up the bulk of the publishing figure.
Downtown’s Adjusted EBITDA was €3 million ($3.5m), an Adjusted EBITDA margin of 3.5%.
EBITDA ETC.
In Q1 2026, UMG’s EBITDA (earnings before interest, taxes, and depreciation) grew 2.1% YoY at constant currency to €571 million ($668.2m).
EBITDA margin came in at 19.7%, compared to 20.8% in the first quarter of 2025.
Adjusted EBITDA for Q1 was €636 million ($744.3m), up 3.9% YoY at constant currency. Adjusted EBITDA margin was 21.9%, compared to 22.8% in the first quarter of 2025, with the decline primarily due to the consolidation of Downtown.
Excluding Downtown, Adjusted EBITDA grew 3.4% YoY in constant currency.
Alongside its Q1 results, UMG announced that its Board has increased the size of its share buyback authorization to €1 billion ($1.17bn).
When UMG completes its €500 million share buyback program announced in March, it intends to initiate another buyback program for the incremental €500 million, subject to market conditions and shareholder approval at UMG’s 2026 Annual General Meeting on May 13.
As first reported by MBW earlier today, UMG also confirmed that, in March 2026, its Board authorized the monetization of half of its equity stake in Spotify.
“Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future.”
Matt Ellis, UMG
Matt Ellis, UMG’s CFO, said: “Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future.
“In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success.”
All EUR-USD conversions made at the average Q1 2026 exchange rate published by the European Central Bank.Music Business Worldwide
