Spotify, Universal, Warner and Sony Post Strong 2026 Earnings as the Music Business Shifts From Growth to Maturity

NEW YORK, NY — The biggest names in recorded music all reported solid first-quarter 2026 results, and the numbers point to an industry that has largely won the streaming battle. Spotify, Universal Music Group, Warner Music Group and Sony Music each posted growth, with cash flow and profits generally holding up well.

But the mood around those results was more complicated than a simple victory lap. Investors are now watching for slower growth in mature markets, tighter margins and a new round of strategic moves that could reshape how labels and platforms do business.

Spotify’s record quarter still raised questions on Wall Street

Spotify said April 28 that revenue reached €4.53 billion in the first quarter, up 8% from a year earlier, while gross margin hit a record 33%. The company also reported €715 million in operating income and €824 million in free cash flow, along with 761 million monthly active users and 293 million premium subscribers.

Even with those results, the stock fell sharply in early trading after the company forecast second-quarter operating income below analysts’ expectations. The reaction suggested that investors now want more than proof Spotify can be profitable; they want evidence that earnings growth can keep accelerating.

Universal’s Spotify stake sale became the biggest story of the quarter

Universal Music Group also turned in a steady quarter, posting €2.9 billion in revenue and 12.5% constant-currency growth in subscription revenue for recorded music. But the headline development came when the company said it would sell about half of its Spotify stake, cutting its ownership from roughly 3% to about 1.5%.

The sale is expected to bring in about $1.4 billion, money Universal plans to use for an expanded share buyback program. The move also matters symbolically: it marks a step away from the old streaming-era bargain that tied major labels directly to Spotify’s equity story.

Warner and Sony show the business is healthy but entering a new phase

Warner Music Group reported revenue of $1.84 billion for its fiscal first quarter, up 10.4%, with operating profit jumping 36.9% and free cash flow rising 42%. Sony Music, meanwhile, posted about ¥542 billion in revenue, up 13%, with growth across recorded music, publishing and even physical sales.

Together, the results suggest the music industry is still making money from streaming, but the easy growth phase is over. Labels are now leaning more heavily on catalog, licensing, AI deals and other revenue streams as the market matures and North America shows signs of saturation.

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