Universal Music Group Reports Solid Q2 Growth

Universal Music Group (UMG) has reported second-quarter revenue growth in 2026, with gains driven by the consolidation of Downtown Music Holdings, Streaming 2.0 pricing benefits, and strength across physical, licensing, and performance revenue.

Q2 highlights:

• Revenue reached €3.294 billion (USD $3.83bn), up 10.5% YoY (13.3% in constant currency). Excluding Downtown, revenue grew 6.4% at constant currency.

• Overall Recorded Music revenue increased 16.2% at constant currency to €2.516 billion ($2.93bn). Excluding Downtown, Recorded Music revenue grew 8.7% YoY at constant currency.

• Within that category, subscription and streaming revenues (including ad-supported and subscription streaming revenues) were up 15.4% YoY at constant currency to €1.757 billion ($2.04bn).

• Recorded Music subscription revenue alone grew 16.6% at constant currency to €1.368 billion ($1.59bn), benefiting from Downtown’s contribution and Streaming 2.0 pricing.

• Physical revenue rose 15.9% and licensing and other revenue increased 34.9% at constant currency.

• Adjusted EBITDA was €674 million ($783.8m), down 0.3% YoY but up 1.5% at constant currency. Margin declined to 20.5% due to Downtown’s consolidation, pressure from revenue and repertoire mix in Recorded Music, and a merchandising loss.

• Top sellers included Noah Kahan, BTS, Olivia Rodrigo, Drake, and Olivia Dean.

What they said:

• Sir Lucian Grainge, Chairman and Chief Executive Officer of UMG: “We’re delivering on our strategic plan, and working to further sharpen our execution, while capitalizing on the opportunities presented by new technologies and the ever-evolving music ecosystem. Our unique combination of global reach, local expertise, artist development, vast audio and visual IP and entrepreneurial culture positions UMG to deliver long-term growth, sustained value creation, and creative and commercial success for our artists and songwriters.”