Universal Music Group generated revenues of EUR €3.394 billion (USD $3.90B) across all of its divisions (including recorded music, publishing, and more) in Q3 (the three months ending September 30, 2026).
That’s according to UMG‘s latest quarterly results, published on Thursday (October 29).
They reveal that UMG’s overall Q3 revenue grew 11.7% YoY at constant currency, a figure that includes the consolidation of Downtown Music Holdings.
Excluding Downtown, whose results are consolidated from its acquisition date of February 20, 2026, revenue grew 5.3% YoY at constant currency.
According to UMG, its Q3 growth was primarily 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”.
Adjusted EBITDA came in at €729 million ($838.7m), a margin of 21.5%, down from 22.0% in Q3 2025 but up on the 20.5% margin that UMG posted in the prior quarter (Q2 2026).
Excluding Downtown, UMG’s Q3 2026 adjusted EBITDA margin was 22.4%.
“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.”
Sir Lucian Grainge, UMG
One major highlight from UMG‘s latest results was the company’s recorded music subscription revenue, which grew 19.2% YoY at constant currency to €1.422 billion ($1.64bn) in Q3, and grew 9.5% YoY excluding Downtown.
That jump was supported, according to UMG, by “wholesale price increases and continued healthy subscriber growth”.
Another highlight came in the form of UMG‘s physical revenue, which grew 17.4% YoY at constant currency to €392 million ($451.0m), with growth that UMG said was “broad-based across North America, Japan and Europe”.
Commenting on the Q3 earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge, 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.”
RECORDED MUSIC
Universal‘s overall Recorded Music revenue for the third quarter of 2026 was €2.559 billion ($2.94bn), up 14.7% YoY at constant currency. Excluding Downtown, Recorded Music revenue grew 7.4% YoY at constant currency.
Within the Recorded Music segment, UMG‘s ‘Subscription and streaming revenues’ (including ad-supported and subscription streaming revenues) grew 17.9% YoY at constant currency to €1.809 billion ($2.08bn). Excluding Downtown, they grew 8.4% YoY at constant currency.
Breaking UMG’s recorded music streaming figure down further reveals that the company’s subscription streaming revenues grew 19.2% YoY at constant currency to reach €1.422 billion ($1.64bn). Excluding Downtown, subscription revenue grew 9.5% YoY at constant currency.
UMG added that “market share headwinds moderated compared to the first half of 2026”.
Universal‘s ad-supported recorded music streaming revenue grew 13.5% YoY at constant currency to €387 million ($445.2m), or 4.7% YoY excluding Downtown.
According to UMG, there was “growth across several key video and digital partners, partially driven by better per-play rates”.
Within Universal’s recorded music business, Physical revenue grew 17.4% YoY at constant currency to €392 million ($451.0m), both including and excluding Downtown, with growth “across frontline and catalog,” according to UMG.
‘License and other’ revenue rose 0.3% YoY at constant currency (down 0.9% YoY on a reported basis) to €325 million ($373.9m).
Excluding Downtown, ‘License and other’ revenue declined 2.8% YoY at constant currency, as “growth in synchronization and audiovisual revenue was more than offset by lower live and related income,” according to UMG.
Downloads and other digital revenue fell 15.4% YoY at constant currency to €33 million ($38.0m), or 30.8% YoY excluding Downtown. UMG said the decline reflected “the ongoing industry-wide format shift”.
Top sellers for the quarter included Mrs. Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande, and The Beatles.
MUSIC PUBLISHING
Universal‘s overall Music Publishing revenue for the third quarter of 2026 was €590 million ($678.8m), up 7.5% YoY at constant currency. Excluding Downtown, Music Publishing revenue grew 1.5% YoY at constant currency.
Digital revenue grew 11.8% YoY at constant currency to €370 million ($425.7m), or 3.9% YoY excluding Downtown, “reflecting subscription growth, partially offset by softer ad-supported streaming revenue,” UMG said.
Performance revenue increased 1.7% YoY at constant currency to €118 million ($135.8m), and was flat YoY excluding Downtown.
Synchronization revenue was flat YoY at constant currency (up 1.6% YoY in reported euros) at €64 million ($73.6m).
Excluding Downtown, Synchronization revenue declined 4.7% YoY at constant currency, “reflecting lower film and television activity, partially offset by improved advertising synchs,” according to UMG.
Mechanical revenue was flat YoY at constant currency at €26 million ($29.9m), both including and excluding Downtown.
Other revenue was flat YoY at constant currency at €12 million ($13.8m), and declined 16.7% YoY excluding Downtown.
MERCHANDISING AND OTHER
UMG‘s ‘Merchandising and Other’ revenue in the third quarter of 2026 was €248 million ($285.3m), down 4.6% YoY at constant currency.
According to UMG, the decline was primarily driven by “lower touring income compared to a prior-year quarter that included a greater number of high-profile tours”.
That was partially offset by “growth in direct-to-consumer revenue,” with UMG saying it had “broadened the roll-out of our ship-to-home program for merchandise on certain tours”.
The division posted an Adjusted EBITDA profit of €11 million ($12.7m) in Q3, compared with a €13 million profit a year earlier, with UMG attributing the decline to lower revenue.
DOWNTOWN
Downtown Music Holdings contributed €195 million ($224.3m) in total revenue in Q3 2026.
That compares with the €202 million Downtown added in Q2 2026.
The bulk of Downtown’s Q3 contribution came from Recorded Music, at €162 million ($186.4m), with Music Publishing accounting for a further €33 million ($38.0m).
Downtown‘s Adjusted EBITDA was €13 million ($15.0m), an Adjusted EBITDA margin of 6.7%.
EBITDA ETC.
In Q3 2026, UMG‘s EBITDA (earnings before interest, taxes, depreciation, and amortization) was €672 million ($773.1m), up 12.0% YoY at constant currency.
EBITDA margin was 19.8%, compared to 19.7% in the third quarter of 2025.
Adjusted EBITDA for Q3 was €729 million ($838.7m), up 9.0% YoY at constant currency.
Adjusted EBITDA margin was 21.5%, compared to 22.0% in Q3 2025.
Excluding Downtown, Adjusted EBITDA grew 7.0% YoY at constant currency, and the Adjusted EBITDA margin was 22.4%.
According to UMG, that margin reflected “margin expansion in Recorded Music”, partially offset by “lower profitability in Music Publishing and Merchandising”.
Excluding Downtown, Recorded Music’s Adjusted EBITDA margin was 26.2%, which UMG said 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.”
All EUR-USD conversions made at the average Q3 2026 exchange rate published by the European Central Bank.Music Business Worldwide