Universal Music Group generated $3.90 billion in revenue in the three months to September 30, 2026, an increase of 11.7% year on year at constant currency, per musicbusinessworldwide.com. This is excluding Downtown Music Holdings, which it consolidated from February 20, 2026, revenue rose 5.3%.
The results, published on October 29, were driven by subscription streaming growth, higher physical sales, increased advertising-supported streaming revenue and stronger digital income at Universal’s music publishing division.
Recorded music revenue reached $2.94 billion, up 14.7% year on year at constant currency, or 7.4% excluding Downtown. Subscription and streaming revenues within the division rose 17.9% to $2.08billion.
Subscription streaming revenue alone increased 19.2% to $1.64 billion, helped by wholesale price increases and continued subscriber growth. Universal said the gains also reflected pricing benefits from its “Streaming 2.0” agreements. Excluding Downtown, subscription revenue rose 9.5%.
Advertising-supported streaming revenue rose 13.5% to $445.2 million, or 4.7% excluding Downtown, as several video and digital partners delivered growth and per-play rates improved.
Physical revenue increased 17.4% $451.0 million, with growth across North America, Japan and Europe and across both new releases and catalogue. Downloads and other digital revenue fell 15.4% to €33m ($38.0m), reflecting the continued shift away from that format.
Universal said its top-selling artists in recorded music during the quarter were Mrs Green Apple, Olivia Rodrigo, Stray Kids, Ariana Grande and The Beatles.
Music publishing revenue rose 7.5% to $678.8 million, or 1.5% excluding Downtown. Digital publishing revenue increased 11.8% to $425.7 million, while performance revenue rose 1.7% to $135.8 million. Synchronisation revenue was flat at $73.6 million.
Merchandising and other revenue declined 4.6% to $285.3 million, mainly because the prior-year quarter included more high-profile tours. The decline was partly offset by growth in direct-to-consumer merchandise sales.
Downtown contributed $224.3 million to group revenue in the quarter, including $186.4 million from recorded music and $38.0 million from publishing. It generated adjusted EBITDA of $15.0 million, a margin of 6.7%.
Universal’s adjusted EBITDA rose 9.0% to $838.7 million, producing a margin of 21.5%, down from 22.0% a year earlier but above the 20.5% recorded in the second quarter of 2026. Excluding Downtown, adjusted EBITDA grew 7.0% and the margin was 22.4%.
EBITDA increased 12.0% at constant currency to $773.1 million, with a margin of 19.8%.
Universal chairman and chief executive Sir Lucian Grainge said the company was investing in human artistry, improving streaming economics and expanding opportunities for artists and fans. Chief financial officer Matt Ellis said subscription revenue growth had accelerated and that the adjusted EBITDA margin excluding Downtown had expanded by 40 basis points.
All euro-dollar conversions in Universal’s results were made using the average Q3 2026 exchange rate published by the European Central Bank.