UMG’s Q3 2025: Blockbuster Artists Fuel €3 Billion Growth

Universal Music Group (UMG) announced a strong close to its third quarter of 2025, posting impressive financial results that underscore both the power of its A-list roster and its forward-thinking strategic moves. The company’s revenue surged 5.3%, hitting a significant €3.02 billion ($3.53 billion). This growth was buoyed by success across all three of UMG’s business units, resulting in adjusted earnings (EBITDA) climbing 6.9% to €594 million. The report, released on October 30th, painted a picture of a company capitalizing on current musical hits while actively shaping the future of the industry.

Powered by Hits: The Financial Snapshot

The recorded music division was a major engine for this success, with revenue rising 3.6% to €2.22 billion. This achievement was directly attributed to top-selling releases from chart-dominating artists. The KPop Demon Hunters soundtrack proved to be a major hit, alongside successful projects from global stars Sabrina Carpenter and Morgan Wallen. Furthermore, in a compelling sign of vinyl and CD resilience, physical sales saw a massive jump of 18.4%. This rise was notably boosted by the initial shipments of Taylor Swift’s album, The Life of a Showgirl, demonstrating the lasting value of tangible music products. Recorded music subscription revenue also improved, remaining on track with the company’s projected annual growth goals of 8% to 10%.

Steering the Future: AI and Streaming 2.0 Initiatives

Beyond the financial statements, CEO Lucian Grainge emphasized the pivotal strategic direction UMG is taking to ensure long-term value. He noted the company is focused on “our artists’ and songwriters’ creative and commercial success, our global expansion, the industry’s embrace of our responsible AI initiatives and the continued implementation of Streaming 2.0.” UMG has been highly active in the Artificial Intelligence space. Just before the earnings release, UMG trumpeted a key partnership with Stability AI, aimed at creating powerful, responsibly trained generative AI tools for artists and producers. This move followed a significant settlement and licensing agreement reached with AI music generator Udio a day earlier, cementing UMG’s strategy to partner with, rather than fight, the emerging AI landscape.

In summary, UMG’s Q3 2025 results confirm its dominant position, driven by a powerhouse lineup of artists and robust subscription growth. Crucially, the company is not resting on its laurels, as its rapid implementation of the “Streaming 2.0” model and its proactive, responsible engagement with AI technology positions it at the forefront of the music industry’s ongoing evolution.