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Universal Music Group generated revenues of EUR €2.9 billion (USD $3.39bn) across all of its divisions (including recorded music, publishing, and more) in Q1 (the three months ending March 31, 2026).
That’s according to UMG’s fresh set of quarterly results, published today (April 29).
They reveal that UMG’s overall Q1 revenue grew 8.1% YoY at constant currency, driven by the consolidation of Downtown Music Holdings, initial pricing benefits from Streaming 2.0 agreements, strong physical sales, and synchronization income, contributing to growth in Recorded Music and Music Publishing.
Excluding Downtown, whose results are included from its acquisition date of February 20, 2026, revenue grew 4.9% YoY in constant currency.
Adjusted EBITDA weighed in at €636 million ($744.3m) — a margin of 21.9%.
Among the highlights in UMG’s latest results was the company’s recorded music subscription revenue, which grew 12.5% YoY at constant currency to reach €1.303 billion ($1.52bn) in Q1, benefiting from the consolidation of Downtown and initial pricing benefits from Streaming 2.0 agreements.
Physical revenue grew 12.7% YoY at constant currency to €310 million ($362.8m), with particular strength in Japan and the US.
Photo: Austin Hargrave
“We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders.”
Sir Lucian Grainge, UMG
Commenting on the Q1 earnings announcement, UMG’s Chairman and CEO, Sir Lucian Grainge, said: “We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry.
“We continue to build the most successful music company in history by attracting the world’s top talent, engaging fans globally, and delivering long-term value for stakeholders. Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry.”
RECORDED MUSIC
Universal’s overall Recorded Music revenue for the first quarter of 2026 was €2.253 billion ($2.64bn), up 8.9% YoY at constant currency. Excluding Downtown, Recorded Music revenue grew 5.4% YoY at constant currency.
Within the Recorded Music segment, UMG’s ‘Subscription and streaming revenues’ (including ad-supported and subscription streaming revenues) grew 10.9% YoY at constant currency to €1.642 billion ($1.92bn).
Breaking UMG’s recorded music streaming figure down further reveals that the company’s subscription streaming revenues grew 12.5% YoY at constant currency to reach €1.303 billion ($1.52bn). Excluding Downtown, subscription revenue grew 7.9% YoY at constant currency.
Universal’s ad-supported recorded music streaming revenue reached €339 million ($396.7m), up 5.0% YoY at constant currency, though the company noted that consumers continue to shift consumption from “better-monetized video platforms to short-form platforms”.
Within Universal’s recorded music business, Physical revenue grew 12.7% YoY at constant currency to €310 million ($362.8m), with particular strength in Japan and the U.S.
‘License and other’ revenue decreased 3.6% YoY at constant currency to €267 million ($312.5m), as underlying licensing revenue growth from strong synchronization revenue “was more than offset by meaningful, non-recurring live income in the first quarter of 2025.”
Downloads and other digital revenue reached €34 million ($39.8m), down 5.6% YoY at constant currency, due to the “continued industry-wide format shift”.
Top sellers for the quarter included BTS, Olivia Dean, Taylor Swift, the KPop Demon Hunters soundtrack and Morgan Wallen.
MUSIC PUBLISHING
Universal’s overall Music Publishing revenue for the first quarter of 2026 was €552 million ($645.8m), up 7.0% YoY at constant currency. Excluding Downtown, Music Publishing revenue grew 4.3% in constant currency.
Synchronization revenue grew 15.3% YoY at constant currency to €68 million ($79.6m), driven by stronger advertising, trailers, and motion picture income.
Performance revenue increased 6.5% YoY at constant currency to €115 million ($134.6m).
Digital publishing revenue reached €328 million ($383.9m), up 4.8% YoY at constant currency, with UMg citing a “difficult comparison against strong digital growth in the prior-year quarter”.
Mechanical revenue grew 12.0% YoYat constant currency to €28 million ($32.8m), partially due to physical strength in Japan.
MERCHANDISING AND OTHER
UMG’s ‘Merchandising and Other’ revenue in the first quarter of 2026 reached €101 million ($118.2m), down 1.9% YoY at constant currency.
According to UMG, the decline was driven by lower direct-to-consumer revenue due to the timing of product releases and a decline in retail sales, partially offset by strong growth in touring income driven by tours for Lady Gaga, Conan Gray, and Nine Inch Nails, amongst others.
DOWNTOWN
Downtown Music Holdings contributed €86 million ($100.6m) in total revenue from its consolidation date of February 20 — approximately five-and-a-half weeks of the quarter.
The vast majority of Downtown’s contribution came from Recorded Music, which accounted for €72 million ($84.3m) of the total. Within that, subscription and streaming revenue reached €66 million ($77.2m), of which €54 million ($63.2m) came from subscription revenue specifically.
Downtown’s Music Publishing operations contributed €14 million ($16.4m), with digital revenue of €11 million ($12.9m) making up the bulk of the publishing figure.
Downtown’s Adjusted EBITDA was €3 million ($3.5m), an Adjusted EBITDA margin of 3.5%.
EBITDA ETC.
In Q1 2026, UMG’s EBITDA (earnings before interest, taxes, and depreciation) grew 2.1% YoY at constant currency to €571 million ($668.2m).
EBITDA margin came in at 19.7%, compared to 20.8% in the first quarter of 2025.
Adjusted EBITDA for Q1 was €636 million ($744.3m), up 3.9% YoY at constant currency. Adjusted EBITDA margin was 21.9%, compared to 22.8% in the first quarter of 2025, with the decline primarily due to the consolidation of Downtown.
Excluding Downtown, Adjusted EBITDA grew 3.4% YoY in constant currency.
SHARE BUYBACK AND SPOTIFY STAKE
Alongside its Q1 results, UMG announced that its Board has increased the size of its share buyback authorization to €1 billion ($1.17bn).
When UMG completes its €500 million share buyback program announced in March, it intends to initiate another buyback program for the incremental €500 million, subject to market conditions and shareholder approval at UMG’s 2026 Annual General Meeting on May 13.
As first reported by MBW earlier today, UMG also confirmed that, in March 2026, its Board authorized the monetization of half of its equity stake in Spotify.
The announcement comes against the backdrop of Bill Ackman’sPershing Square having submitted a non-binding proposal to acquire UMG in a deal valued at approximately $64 billion earlier this month, a bid which itself proposed the sale of UMG’s full Spotify stake to help fund its cash component.
“Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future.”
Matt Ellis, UMG
Matt Ellis, UMG’s CFO, said: “Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future.
“In addition, the important steps we are announcing today to increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success.”
All EUR-USD conversions made at the average Q1 2026 exchange rate published by the European Central Bank.Music Business Worldwide
The Blockchain Association says a group of its members, including Coinbase, the Solana Institute, and others, held an informational gathering on Capitol Hill today to help educate staffers and their members on the CLARITY Act.
Crypto market infrastructure legislation remains in limbo because legacy banks fear losing revenue to competition. More specifically, incumbent banks worry that stablecoin holders who earn yield may compel them to pay higher rates to deposit holders.
Via X, the Association shared:
The discussion walked Hill staffers through the market structure debate and the need for workable rules for developers, balanced regulatory authority, and clear protections for non-custodial software developers.
Meanwhile, crypto reporter Eleanor Terret reported that Senator Thom Tillis says they are ready to move the bill to Markup.
“I’m going to ask the chair to move forward with scheduling a markup when we get back… I think we’ve made a lot of progress… and it’s time to get it before the committee to move it forward.”
Apparently, bank concerns regarding yield have been addressed.
The digital asset industry is concerned that if legislation gets pushed back even further, it will lose momentum, or even worse, fall to the wayside as elected officials gear up for the midterms.
While the White House has been supportive of the crypto industry, including the debate on stablecoin yield, legacy banks have dug in, refusing to accept a future that incorporates crypto – one where they can choose to compete.
Most investors see Brookfield Corporation (BN 2.40%) as an asset manager. That’s not wrong, but it misses what the business is becoming.
Brookfield Corporation isn’t just managing capital anymore. It’s building a system that can generate, control, and reinvest capital within its own ecosystem — a model that increasingly resembles how Berkshire Hathaway compounds wealth over time.
That shift may look subtle today. But over time, it could create enormous wealth for shareholders.
Image source: Getty Images.
Brookfield Corporation controls capital, not just manages it
Most asset managers raise capital and invest it on behalf of clients. Brookfield Corporation goes further.
Alongside third-party funds (more than $1 trillion), it invests the capital on its own balance sheet ($180 billion) and is expanding its wealth solution (insurance) business, which now holds $135 billion in assets. That gives Brookfield Corporation access to capital it doesn’t need to return for some time.
That flexibility matters. It allows the company to hold assets longer, reinvest cash flows, and deploy capital when markets are weak, rather than selling on a fixed timeline. That’s a competitive advantage, since few asset managers operate this way.
That’s also what makes the comparison to Berkshire Hathaway legitimate since both models rely on patient capital and a long-term outlook in their investment decision-making.
Today’s Change
(-2.40%) $-1.06
Current Price
$43.17
Key Data Points
Market Cap
$97B
Day’s Range
$42.95 – $44.46
52wk Range
$35.66 – $49.56
Volume
1.6K
Avg Vol
6.3M
Gross Margin
26.37%
Dividend Yield
0.58%
Its earnings are becoming more predictable
Another important shift is happening in how Brookfield Corporation makes money.
Through Brookfield Asset Management, the company generates roughly $3 billion in annual fee-related earnings, growing at more than 20% year over year. These earnings come from long-term capital commitments and are generally stable.
At the same time, many of Brookfield Corporation’s underlying assets — such as infrastructure and renewable power — generate consistent cash flows. And let’s not forget the insurance business, which is slowly becoming the third profit engine for the company.
Together, this creates a business with more visible, repeatable earnings rather than relying heavily on one-time gains. To put it into perspective, the infrastructure, renewable power, and insurance businesses generated $1.6 billion in distributable earnings in the 2025 fourth quarter.
For long-term investors, having a consistent profit engine is crucial to sustaining the growth machine.
Why may the market be underestimating it?
Brookfield Corporation now manages more than $1 trillion in assets, yet it remains a complex company.
It operates across multiple segments, reports different types of earnings, and doesn’t fit neatly into a single category. As a result, some investors may overlook how the pieces fit together.
That complexity can create a gap between perception and reality. But for those willing to do the extra work, it may present an opportunity. One thing is that as its asset management’s fee-based earnings grow and its insurance platform scales, the business may become easier to understand.
Also, Berkshire Hathaway has always been complex, if not more so. Still, that complexity hasn’t stopped it from becoming one of the most successful companies during the past few decades.
If Brookfield Corporation continues to execute, it could become the next Berkshire Hathaway, with a similar business structure and long-term shareholders’ wealth creation.
What does it mean for investors?
Brookfield Corporation doesn’t look exactly like Berkshire Hathaway today. But it shares some of the same foundations: long-term capital, operational control, and a focus on reinvesting cash flows over time.
In simple terms, Brookfield Corporation is becoming a company that can generate, manage, and reinvest capital within its own system.
If the model continues to scale, Brookfield Corporation may evolve into something that investors are looking for: a long-term compounding machine.
And for investors willing to look past the complexity, this is the stock that they may want to add to their portfolio.
This article is presented by Cost Segregation Guys.
If you own investment property, you have probably heard the term “cost segregation” thrown around at real estate meetups or on podcasts. But most investors I talk to have a vague idea that it involves depreciation and saving on taxes, without a clear picture of what actually happens during the process.
As a CPA who works with real estate investors, I want to break it down so you know exactly what you are paying for and why it matters.
What Happens During a Study
A cost segregation study is a formal engineering and tax analysis that breaks a commercial or residential investment property into its individual components, then assigns each component the correct depreciation life under the tax code. Instead of treating the entire building as a single asset depreciated over 27.5 or 39 years, the study identifies components that qualify for five-, seven-, or 15-year depreciation schedules. That acceleration of deductions is where the tax savings come from.
The process begins with a site visit. A qualified engineer physically walks the property to catalog every component, from the HVAC system to the parking lot lighting to the decorative finishes inside. They photograph, measure, and document everything that could potentially be reclassified.
Engineering vs. Accounting Roles
This is where a lot of investors get confused. A cost segregation study is not something a CPA does alone at a desk. It requires a licensed engineer to lead the physical inspection and prepare the technical analysis. The engineer’s job is to identify and value the building’s components based on construction cost principles.
Your CPA’s role is to take that engineering report and apply it correctly to your tax return, confirm that the classifications comply with IRS guidance, and make sure the resulting deductions are claimed in a way that holds up to scrutiny.
The two disciplines have to work together. Be cautious of any firm that offers cost segregation studies without involving a licensed engineer, because that is a red flag the IRS has flagged as well.
How Property Parts Get Reclassified
The IRS allows certain building components to be treated as personal property or land improvements rather than structural building components, which means they qualify for shorter depreciation lives and bonus depreciation. Common examples include:
Specialty electrical wiring
Decorative lighting
Carpet
Certain plumbing fixtures
Parking lots
Sidewalks
Landscaping
Site drainage systems
The key question the engineer is answering is whether a component is specifically related to the operation of the building itself, or whether it serves a more specific business function, or could be removed without affecting the structural integrity of the property.Components that serve the business rather than the building tend to qualify for shorter lives.
Why Documentation Matters to the IRS
The IRS does not take accelerated depreciation claims on faith. If you are ever audited, the quality and completeness of your cost segregation report is the difference between keeping your deductions and losing them.
Here is a breakdown of what the IRS actually looks for and why each piece matters.
The written report itself
A defensible cost segregation study is a formal written report, typically ranging from 30 to 100 pages depending on the property’s complexity. It is not a spreadsheet summary or a one-page memo.
The report needs to clearly identify the property, describe the methodology used, and explain how each component was classified and valued. The IRS Audit Techniques Guide for cost segregation, which agents use when reviewing these studies, specifically calls out the need for a detailed, well-organized report that documents the basis for every reclassification.Thin reports without a supporting rationale are one of the most common reasons studies get challenged.
Photographs and site visit records
Physical evidence matters. The report should include photographs of the components being reclassified, showing exactly what was observed during the site inspection. This confirms that a licensed professional actually visited the property and that the classifications are based on real conditions, not assumptions.
If a study was prepared without a site visit, which some low-cost providers do, that alone can be grounds for disallowance. The IRS expects to see evidence that someone actually walked the property.
Engineering-based cost estimates
Each reclassified component needs a defensible cost estimate. Engineers use industry-standard cost estimating databases, such as RSMeans, to calculate the installed cost of individual components when the original construction records are not available. If you have original contractor invoices or construction cost breakdowns, those are even better.
The point is that the cost allocations need to be grounded in actual construction economics, not just percentages pulled from a table. The IRS wants to see that the numbers have a credible, traceable basis.
Tax code and revenue procedure citations
The report needs to cite the specific tax authorities supporting each classification. This includes the Asset Class tables in Revenue Procedure 87-56, which define the recovery periods for different categories of property. It also includes the relevant sections of the Internal Revenue Code, particularly IRC Section 168, covering modified accelerated cost recovery, and any applicable court cases or IRS rulings that support the methodology.
Without these citations, the report has no legal foundation. A good cost segregation firm knows the case law cold, because that’s what stands between you and a disallowed deduction when the IRS pushes back.
Qualifications of the preparer
The IRS also looks at who prepared the study. A credible report will include the credentials of the engineer who conducted the site inspection, their licensure information, and their professional background in cost estimating or construction.
Studies prepared solely by accountants without engineering involvement are treated with skepticism. The IRS Audit Techniques Guide explicitly notes that the preparer’s qualifications are a factor in evaluating the reliability of the study.
A quick reference: What the IRS expects to see
Document Element
Why It Matters
Formal written report
Establishes the methodology and provides a paper trail for every reclassification
Site visit evidence and photos
Confirms physical inspection occurred and classifications reflect real conditions
Engineering cost estimates
Validates that component values are grounded in construction economics, not guesswork
Tax code citations (Rev. Proc. 87-56, IRC 168)
Provides the legal authority for each depreciation class assignment
Preparer credentials
Demonstrates that qualified engineering and tax professionals prepared the study
Cost segregation studies that cut corners on documentation are not just sloppy; they are a liability. A cheap study that cannot survive audit scrutiny will end up costing far more than you saved when the IRS requires you to recapture disallowed depreciation with interest and penalties.
The documentation is not paperwork for the sake of paperwork. It is your defense.
What Kind of Properties Qualify?
Generally speaking, cost segregation studies make sense for commercial real estate, multifamily residential properties, short-term rentals, and mixed-use buildings. On the residential side, single-family rentals can qualify, but the cost of the study often needs to be weighed against the potential benefit, since the components tend to be less complex.
The sweet spot tends to be properties with a cost basis of $500,000 or more, newly constructed buildings, recently purchased properties, or buildings that have undergone significant renovation. Studies can also be done retroactively using a look-back analysis, which allows you to catch up on missed depreciation from prior years without amending returns.
If you own investment property and have not had a conversation with your CPA about cost segregation, it is worth putting on the agenda. The upfront cost of a study can often be recovered many times over in tax savings, especially with current bonus depreciation rules still in play. Just make sure you are working with a firm that brings both engineering credibility and solid tax knowledge to the table.
Ready to See What You Could Be Missing?
If this has you wondering how much depreciation you have left on the table, consider Cost Segregation Guys. They are the firm I recommend to investors who want a study done right, meaning a licensed engineer on every project, detailed documentation that holds up under IRS scrutiny, and a team that actually understands real estate investing. They work with everything from small multifamily to large commercial portfolios, and they will give you a free analysis upfront so you can see the potential benefit before you commit to anything.
Donnie Powell is a seasoned Mortgage Loan Originator, bringing decades of high-level financial and market experience to every client relationship. With a background rooted in trading, capital markets, and institutional finance, Donnie has a deep understanding of how market conditions, pricing, and timing impact financial decisions—an advantage he now leverages to guide clients through the mortgage process with confidence.
Throughout his career, Donnie has worked closely with a wide range of clients, from individual borrowers to high-net-worth investors, developing a strong ability to assess complex financial scenarios and deliver tailored solutions. His experience navigating fast-paced, highly regulated environments has sharpened his attention to detail, risk management, and execution—skills that translate directly into smooth, efficient loan closings.
Donnie is known for his hands-on approach, clear communication, and commitment to finding the right loan strategy for each client’s unique goals. Whether assisting first-time homebuyers, refinancing homeowners, or seasoned investors, he takes the time to educate and guide clients every step of the way.
Licensed across securities trading, supervision, and capital markets (Series 7, 57, 24, 21, 25, 63), he bridges institutional finance with real estate and credit to originate, structure, and scale investment opportunities. With a strong analytical background and a client-first mindset, Donnie is dedicated to making the mortgage process straightforward, strategic, and successful.
An HBR Executive Live conversation with Lyft CEO David Risher. by Adi Ignatius
April 29, 2026
Lyft CEO David Risher has said that 2026 will be a “transformational” year for the company, as it introduces autonomous vehicles and looks to evolve from a ride-sharing app to a “global hybrid transportation platform.”
If you’re planning a trip to Disney parks, Sam’s Club will be offering a 10% discount on gift cards. You will be able to purchase up to $1,000 in gift cards for $900 online. Check out more details below.
Offer Details
Buy a $500 Disney Gift Card for $450.
Limit 2 per member.
Offer valid April 29- May 31, 2026.
OFFER LINK
Guru’s Wrap-up
A 10% discount on Disney Gift Cards is as good as it gets. Disney is expensive in general, so any discount helps. You can also check out the best shopping portals for Sam’s Club purchases to maximize your savings.
HT: DoC
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The last 1–2 years have been confusing for many stock market investors.
Global conflicts, tariff wars, rising crude oil prices, and uncertainty in the economy have created fear among investors.
Because of this, many people have started losing confidence in the stock market.
But what does the data actually say?
In this video, we analyze:
• Why the stock market has been moving sideways
• How government spending affects corporate earnings
• The relationship between interest rates and asset prices
• Why real estate boomed after 2002 in India
• How bond yields influence stock market valuations
• What Nifty PE ratio tells us about current market valuation
• Why crises sometimes create the best investment opportunities
History shows that when most people lose interest in an asset class, that is often when long-term opportunities start building.
This video explains the economic logic, historical data, and market behavior behind such situations in a simple and practical way.
⚠️ Disclaimer:
This video is for educational purposes only. The views expressed are personal opinions based on publicly available information. Investments are subject to market risks. Past performance does not guarantee future returns.
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Please consult a SEBI-registered professional before making any financial decisions.
Investing in the stock market is subject to market risks. Do your own research before investing.
Ever since Google was founded in 1998, search has been the core of the company’s identity. For much of that time, search has also been the engine (no pun intended) driving Google’s business.
On Wednesday, that began to change.
The company’s cloud computing business was the undisputed star of parent company Alphabet’s first-quarter earnings, posting an eye-popping 63% revenue growth from the prior year, for a total of $20 billion.
AI is of course what’s driving the booming growth in the Google Cloud business, as CEO Sundar Pichai and other company executives noted on the earnings call. And investors were delighted, sending shares of Alphabet up 7% in after hours trading.
But lost in the excitement of the moment is something more fundamental: Google Cloud now represents 18% of the company’s overall business. It’s perhaps just one quarter or two more quarters away from comprising one-fifth of the Google empire—something that would have been unthinkable a few years ago.
At this time last year, Google Cloud represented 13.6% percent of Alphabet’s total revenue. In the first quarter of 2024, Cloud was just 11.8%.
Alphabet
Advertising has always been the center of gravity for Google, with its high-margin and recession-proof search ads at the top of a mountain that includes YouTube video ads, display ads that Google distributes to other sites, and ads that appear in Google’s portfolio of popular properties like Gmail and Maps.
It’s not that Google’s ads business is in any danger of going away. Ads generated $77 billion in the first three months of the year, up roughly 16% year-over-year. That’s more revenue than American Express generated in all of 2025. And many Google-watchers believe that AI will only enhance the company’s capacity to serve ads to searchers.
But the cloud business has reached an inflection point where it’s no longer just a cute sideshow. In addition to the revenue growth, Google’s cloud’s operating income tripled from the year-ago period to $6.6 billion. More impressive still, the cloud business operating margin expanded from 9.4% a year ago to 32.9% in Q1.
The blooming of the cloud business is likely to have a significant impact at Google beyond the income statement. The cloud business is run by enterprise sales people in suits like Cloud boss Thomas Kurian, an Oracle veteran. It’s a completely different culture than the rest of Google, where sandal-wearing engineers, product managers, and media types set the tone. How that cultural contrast plays out inside the company in the quarters and years ahead will be fascinating to watch, especially when the time comes to choose a successor to Alphabet CEO Sundar Pichai.
Of course, the main factor that will determine how big the Cloud business becomes is AI. Right now, customer demand for AI is insatiable (Google Cloud’s current backlog is $460 billion) and Google’s cloud business is rising along with it. If the AI train suddenly comes to a halt, or even slows—which many observers think could happen—Google’s cloud business could find itself back in second class.
