Universal Music Group posts Q2 2026 revenue of €3.294 billion, up 10.5%

Universal Music Group reported second-quarter 2026 revenue of €3,294 million, up 10.5% year over year, or 13.3% in constant currency, as the consolidation of Downtown Music Holdings, pricing benefits from Streaming 2.0 agreements, strong physical and licensing sales, and healthy music publishing performance revenue supported growth. The company said subscription and streaming momentum accelerated in the quarter, helping revenue top a Visible Alpha analyst forecast of €3.27 billion. Adjusted EBITDA fell 0.3% to €674 million, though it rose 1.5% in constant currency, while adjusted EBITDA margin contracted 2.2 percentage points to 20.5% because of the Downtown consolidation, recorded music mix pressure and a loss in merchandising. For the first half, revenue rose 5.3% to €6,194 million, or 10.8% in constant currency, while adjusted EBITDA declined 1.9% to €1,310 million and adjusted diluted EPS slipped 1.7% year over year to €0.47. EPS was €0.12 per share versus €0.78 a year earlier, largely due to variance in revaluation of investments in listed and other companies. UMG declared a 2026 interim dividend of €0.24 per share, in line with 2025. The company also revised its definition of free cash flow, restating prior periods; under the new definition, free cash flow fell to €24 million in H1 2026 from €163 million in H1 2025. Top sellers in the quarter included Noah Kahan, BTS, Olivia Rodrigo, Drake and Olivia Dean.