Universal Music Group (UMG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 8.1% year-over-year in constant currency to €2,900 million, with adjusted EBITDA up 3.9% to €636 million; this marks the 19th consecutive quarter of growth in both metrics since going public.

• Adjusted EBITDA margin declined by 0.9 percentage points to 21.9%, mainly due to Downtown consolidation and merchandising losses.

• Downtown acquisition closed and consolidated from February 2026, significantly expanding label and artist services.

• Achieved highest global market share in recorded music (33%) in 12 years and record share in music publishing (24%) for 2025.

• Increased share buyback authorization to €1 billion, funded partly by monetizing half of the Spotify equity stake.

Financial highlights

• Recorded Music revenue up 8.9% year-over-year (5.4% ex-Downtown) to €2,241 million; subscription revenue up 12.5% in constant currency.

• Music Publishing revenue up 7% (4.3% ex-Downtown) to €552 million; adjusted EBITDA up 11.6% with margin improvement.

• Merchandising & Other revenue declined 9.9% to €101 million, with an adjusted EBITDA loss of €10 million.

• Virgin Music revenue grew at a 16% CAGR since 2023, reaching €790 million in 2025 and representing 8.4% of total recorded music revenue.

• Physical revenue increased 12.7% in constant currency, with strong sales in Japan and the U.S.

Outlook and guidance

• Anticipates further pricing benefits from Streaming 2.0 deals and additional agreements later in the year.

• Expects market share to recover as the release slate strengthens throughout 2026.

• Management remains focused on long-term value creation and sustained revenue and EBITDA growth.

• Revenue and EBITDA growth rates are presented in constant currency, with alternative performance indicators used for clarity.