Universal Music Group's shares dropped after the music giant reported fourth-quarter revenue of €3,605 million, missing analyst expectations. The company posted adjusted earnings per share of €1.03 for 2025, up from €0.96 in 2024, but investors focused on weaker margins and guidance concerns.

Fourth-quarter adjusted EBITDA grew 1.4% year-over-year to €810 million, though the EBITDA margin declined 0.7 percentage points to 22.5%. Recorded Music subscription revenue increased 2.4% year-over-year, or 7.7% in constant currency, excluding a prior-year catch-up payment. The company also announced it would postpone plans for a U.S. listing due to market uncertainty and valuation concerns.

For full year 2025, revenue reached €12,507 million, up 5.7% year-over-year, with adjusted EBITDA of €2,810 million increasing 5.6%. Despite strong top-line growth, the margin pressure and delayed U.S. IPO plans weighed on investor sentiment. CEO Sir Lucian Grainge highlighted progress in streaming, artist services, and AI initiatives, but the market reaction suggests investors remain cautious about near-term profitability.