The story of Universal Music Group‘s share price this year has been one of decline.
As of Thursday’s close (October 29), UMG’s share price on Amsterdam’s Euronext stood at €15.84, down around 30% year-to-date.
That slide included the stock plummeting by double digits following UMG‘s Q2 earnings in July.
But on Friday (October 30), following a positive earnings announcement the day before, things looked decidedly brighter.
According to Euronext data, UMG’s share price opened at €17.06 on Friday, up 7.7% on Thursday’s close.
It then climbed as high as €18.20 – a rise of a whopping 14.9% – before settling back to close the day at €17.09, up 7.9%.
At its peak, the rally added around USD $4.8 billion (EUR €4.3bn) to UMG’s market capitalization.
By the close, the gain was worth around USD $2.5 billion (EUR €2.3bn).
UMG was the biggest riser on Amsterdam’s AEX index on Friday.
Some 6.04 million UMG shares changed hands during the session, more than three times Thursday’s volume of 1.93 million.
UMG’s Q3 results showed that its recorded music subscription revenues grew 9.5% YoY at constant currency in the quarter, excluding the contribution of Downtown Music Holdings.
That figure was ahead of the 8.2% growth analysts had expected, according to an ING note cited by Reuters.
It also marked a rebound from earlier in 2026. UMG’s subscription revenue growth had slowed to 6.7% in Q2, from 7.9% in Q1.
On July 31, the day after those Q2 numbers were published, UMG’s shares were trading down by around 25% in Amsterdam, which Reuters reported was on track to be the company’s biggest one-day share price drop on record.
Including Downtown, which UMG’s Virgin Music Group acquired in February, UMG’s Q3 subscription revenues grew 19.2% YoY at constant currency to €1.422 billion ($1.64bn).
UMG attributed that growth to “wholesale price increases and continued healthy subscriber growth”, adding that “market share headwinds moderated compared to the first half of 2026”.
UMG’s profitability also improved in Q3 vs. Q2.
The company’s Adjusted EBITDA margin was 21.5% in Q3, up from 20.5% in Q2 2026.
The Adjusted EBITDA margin of UMG’s Recorded Music division, excluding Downtown, expanded by 1.2 percentage points YoY to 26.2%.
UMG said that reflected “lower relative A&R expense” and “improved cost discipline across marketing and overhead”, partially offset by “pressure from revenue and repertoire mix”.
“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.”
Across all of its divisions, UMG generated revenues of €3.394 billion ($3.90bn) in Q3, up 11.7% YoY at constant currency, or 5.3% excluding Downtown.
UMG’s Adjusted EBITDA rose 9.0% YoY at constant currency to €729 million ($838.7m).
Growth was slower at UMG’s Music Publishing division, where revenues grew 1.5% YoY at constant currency excluding Downtown.
The division’s Adjusted EBITDA margin (excluding Downtown) declined by 1.5 percentage points to 24.2%.
Commenting on the results, Sir Lucian Grainge, UMG’s Chairman and CEO, said: “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. 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.”
In May, UMG’s board rejected an unsolicited takeover proposal from Bill Ackman‘s Pershing Square, which valued UMG at approximately €55.8 billion ($64.4 billion), or €30.40 per share.
UMG‘s board said at the time that the proposal “fundamentally and materially undervalues UMG and will not deliver superior value creation”.Music Business Worldwide