Universal Music Group has announced its financial results for the third quarter to 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.”
Revenue for the third quarter of 2026 grew 11.7% in constant currency (all figures will be stated in constant currency), which included the consolidation of Downtown. Excluding Downtown, revenue grew 5.3% with growth in recorded music and music publishing.
The growth was 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.
In the nine months to September 30, UMG's revenue grew 11.1%, or 5.5% excluding Downtown, with growth in recorded music and music publishing, partially offset by a decline in merchandising.
The industry is healthy and growing, and we will keep evolving from a position of strength
Sir Lucian Grainge
Recorded music revenue grew 14.7% year-on-year in Q3, or 7.4% excluding Downtown. Top sellers in the quarter included Mrs Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande (pictured) and The Beatles.
Recorded music subscription revenue grew 19.2% year-on-year during the quarter, 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,” said a statement.
Physical revenue increased 17.4% year-on-year, both including and excluding Downtown, with broad-based strength in North America, Japan and Europe, and across frontline and catalogue.
Music publishing revenue grew 7.5% in constant currency, and grew 1.5% excluding Downtown.
Adjusted EBITDA in Q£ improved 9.0% year-on-year, or 7% excluding Downtown.
For the nine months, adjusted EBITDA grew 4.8% year-on-year, or 3.5% excluding Downtown.
PHOTO: Katia Temkin
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