Universal Music Group NV shares rose on Tuesday after the Dutch music giant reported stronger-than-expected second-quarter earnings and lifted its full-year guidance, citing robust growth in streaming and artist services.
The company, majority-owned by Vivendi SE, said revenue increased 12% year-over-year to €2.84 billion ($3.12 billion), ahead of analyst expectations. Adjusted operating profit rose 14% to €530 million, while net profit climbed 11% to €378 million.
Universal Music attributed the performance to sustained demand for its artist roster, including global acts such as Taylor Swift and Drake, as well as continued expansion in subscription-based streaming services. The company also highlighted growth in its recorded music and music publishing divisions, which benefited from higher licensing fees and synchronization revenues.
For the full year, Universal Music raised its revenue growth guidance to between 7% and 9%, up from a prior range of 5% to 7%, while maintaining its adjusted operating profit margin target of 18% to 19%. The company cited strong momentum across its core markets, including the U.S., Europe, and emerging regions such as Latin America and Asia.
Analysts at Citi and UBS noted that the upward revision reflects Universal Music’s dominant position in the global recorded music industry, where it holds a market share of approximately 30%. The company’s ability to monetize its extensive catalog through streaming platforms and live performances has supported its pricing power and margin stability.
Shares of Universal Music, listed on Euronext Amsterdam under the ticker UMG.AS, were up 3.5% in midday trading, outperforming the broader European media and entertainment sector. The stock has gained roughly 15% since the start of the year, reflecting investor confidence in its growth trajectory and operational execution.
Universal Music’s performance contrasts with recent weakness in other media stocks, which have faced headwinds from advertising slowdowns and shifting consumer spending patterns. The company’s diversified revenue streams, including artist management and merchandise, have provided resilience amid broader economic uncertainty.
The earnings report follows Universal Music’s recent announcement of a strategic partnership with TikTok to expand its reach among younger audiences, further reinforcing its position as a leader in digital music distribution.
