Spotify had a strong third quarter, reaching 788 million monthly active users and generating nearly €5 billion (around $5.6 billion USD) in revenue. But the more interesting takeaway from its earnings call was how the company sees people listening to music in the future, and why the rise of AI agents could be good news for its business.
Co-CEO Gustav Söderström thinks the music streaming giant is particularly well-suited to this shift.
“Spotify is in one of the few categories that actually stands to thrive in the agentic age,” Söderström tells investors. “This is because agents excel at replacing and taking care of things people would rather not do. People love getting rid of chores. But entertainment is the opposite. Nobody asks an agent to ‘summarize a song’ for them.”
Instead of opening Spotify, searching for an artist, and building a playlist themselves, listeners could ask an AI assistant to do the work for them. They might want music for a run, a podcast about something they’ve been discussing with an AI, or an audiobook recap that picks up exactly where they left off.
Spotify wants to be the service those agents turn to, letting people discover music and interact with Spotify through conversations rather than just its own app. Notably, Spotify was the first music service to integrate with Meta’s Muse assistant, and it also integrates with ChatGPT and Claude.
“Our goal is to be the media service that you use from any agent, really turning the growth of agents into a tailwind rather than a headwind. That is exactly what we are seeing now. We are seeing really good adoption of Spotify inside these agents. While other companies are maybe trying to figure out what to do and many are leaning out, we are actually leaning in and participating in the growth instead of standing by the roadside and looking at it,” said Söderström.
The market is already showing signs of friction over how agents access third-party services. Amazon, for example, has blocked Meta’s Muse from shopping on its platform, illustrating how major players may restrict outside agents when questions arise around access, security, privacy, or commercial control.
Spotify’s pitch isn’t just that AI should just make entertainment easier to find. It should make the experience more personal, too.
Söderström describes Spotify today as “an intelligent media service encapsulated as an agent, whether you use it directly through our application or via another agent…Spotify is now an agent that you can not only click on in our app, but talk to, ask questions of, and instruct. We can do things today that no other media services can do,” he said.
“For example, you can ask Spotify to go through your listening history song by song back to 2008, picking your true favorites, beat-stretching them by speeding them up or down, and then sorting them by key and BPM. Then you can ask it to mix them together into the perfect running playlist at your exact cadence,” Söderström explained.
Spotify has years of listening history to draw on, including the artists people return to, the songs they skip, and the music they discover. That information can help it make recommendations that feel more personal than a generic playlist generated by an AI assistant that doesn’t know much about someone’s tastes.
However, Söderström also emphasized that Spotify isn’t sending its listener data to partners. Instead, the agent asks Spotify for something, and Spotify uses its own systems to reason about the request and choose what to play.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Lauren covers media, streaming, apps and platforms at TechCrunch.
You can contact or verify outreach from Lauren by emailing [email protected] or via encrypted message at laurenforris22.25 on Signal.
Spotify zavádí ověřování členů rodinného tarifu pomocí QR kódu; na potvrzení společné domácnosti mají sedm dní, jinak po dobu 12 měsíců nebudou moci přejít na jiný rodinný ani Duo tarif.
Spotify confirmed the reports of its crackdown on Family Plan sharing during its third-quarter call with investors, calling its new method “a routine improvement” to its existing verification tools.
Over the past several days, reports had surfaced indicating that Spotify was rolling out a “QR code verification” method, where the app would prompt members on its Family Plan to verify they lived with the plan manager by scanning a QR code. This code appears on the plan manager’s phone, which the plan member then needs to scan with their own phone, according to Spotify’s support documentation.
Plan members have seven days to complete the QR code after getting a notification, which means they could be out of luck if they live outside the home and aren’t planning a return visit anytime soon. If the verification window is missed, they won’t be able to join another Family or Duo plan for 12 months, but would instead have to shift to an individual plan that they pay for themselves.
The move is meant to boost subscriptions to Spotify’s profitable Premium plans, rather than allowing adult children or friends who live apart from gaming the system to get a cheaper plan by splitting a Family Plan subscription.
During the earnings call, an investor asked a question about the crackdown and what it means, but Spotify co-CEO Alex Norström downplayed the change, calling it a “routine improvement,” not a “crackdown.”
“Family Plan has existed for a long while. It has been around for, I think it is now close to 12, 13 years in Spotify history, and it makes up a pretty significant proportion of our subscriber base,” said Norström. “As such, it is important for us to just make sure over time that we improve the verification methods that we have. There are certainly ways, over time, to find holes around it. As that happens, we figure out how to improve it over time,” he added.
The executive said that the company’s attempt to better verify its users is not something that would have an end date or would ever be complete, but would be considered an ongoing routine improvement.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.
Spotify (SPOT.N) forecast fourth-quarter profit above Wall Street estimates on Thursday, as the Swedish music streaming company bets on its AI-powered features to drive user growth in the crucial holiday season.
Shares of the company rose nearly 4% in premarket trading.
Investors have closely watched the company's profitability as it spends on AI to improve discovery and engagement to attract more users and fend off emerging music-generation rivals such as Suno and Udio.
Spotify expects operating income of €820 million ($920.53 million), compared with analysts' average estimate of €813.4 million, according to data compiled by LSEG.
The company's AI-powered features include AI DJ, which curates personalized music mixes with spoken commentary, and prompt-based playlists that let users describe a mood or listening preference to generate tailored selections.
"We've built a strong business that keeps compounding, we invest when we see a path for growth, our costs are moderating, and there is more runway ahead," co-CEO Alex Norstrom said in a statement.
In the third quarter, Spotify's operating income of €672 million came in line with Visible Alpha-compiled analysts' average estimate of €671.8 million.
It posted revenue of €4.97 billion in the three months ended September 30, compared with an LSEG-compiled estimate of €4.98 billion. It reported earnings per share of €2.48, compared with estimates of €2.80.
Spotify's monthly active users forecast of 818 million for the fourth quarter was marginally below Visible Alpha estimates of 819 million, while its outlook for about 10 million increase in premium subscribers to 316 million was above expectations of 314.7 million.
Its monthly active users grew 1% sequentially in the third quarter to reach 788 million.
Earlier this week, Spotify announced a licensing deal with music distributor Believe for its upcoming paid tool for fan-made AI covers and remixes. It has also signed licensing deals with Universal Music Group (UMG.AS), Merlin and Kobalt for the tool.
Spotify ve třetím čtvrtletí zvýšila počet platících předplatitelů o 2 % na 306 milionů, ale tržby z reklamy ve výši 482 milionů eur zaostaly za odhady.
Výsledky Spotify potvrdily stabilní růst služby i vysokou loajalitu uživatelů, ale zároveň naznačily, že firma stále hledá další významný zdroj příjmů mimo předplatné. Vedení proto sází na rozvoj audioknih, exkluzivních podcastů a nových AI nástrojů, které mají zvýšit zapojení uživatelů a posílit monetizaci platformy.
Spotify Technology navýšila ve třetím čtvrtletí počet měsíčních aktivních uživatelů oproti předchozímu kvartálu o 1 % na 788 milionů. Počet platících předplatitelů se zvýšil o 2 % na 306 milionů. Investoři očekávali 305 milionů platících zákazníků a celkem 788 milionů uživatelů, píše Bloomberg. Akcie v New Yorku rostou v pre-marketu přes 4 %.
Celkové tržby za tři měsíce končící v září vzrostly na 4,97 miliardy eur, to představuje meziroční nárůst o 16 %, což je o něco méně, než předpovídal trh (4,98 miliardy eur). Tržby z reklamy rostly pomaleji a dosáhly 482 milionů eur, čímž zaostaly za odhadem ve výši 484,8 milionu eur. Prodej reklamy je pro společnost dlouhodobě výzvou – firmě se nedaří tento segment proměnit v významný zdroj příjmů, a to přesto, že má více uživatelů využívajících bezplatnou verzi než platících předplatitelů. Hrubá marže ve třetím čtvrtletí dosáhla 33 %, což přesně odpovídá odhadům analytiků.
Pro čtvrté čtvrtletí společnost předpovídá tržby ve výši 5,2 miliardy eur a 818 milionů měsíčních uživatelů, kdy obě hodnoty víceméně odpovídají odhadům analytiků.
V uplynulém čtvrtletí Spotify oznámilo plány na rozšíření své nabídky audioknih. Audioknihy, které podle společnosti zvyšují tržby, zejména u velmi aktivních uživatelů („super users“), kteří si připlácejí za delší dobu poslechu, nyní přicházejí na nové trhy, včetně Španělska, Mexika a Norska.
Aktivity společnosti v oblasti podcastů, které se nyní stále více soustředí na omezený počet velkých pořadů, získaly nový impuls díky obnovení smlouvy s Joe Roganem. Spotify tím získalo práva na prodej reklamy v jeho podcastu, který zůstává nejpopulárnějším pořadem ve Spojených státech. Společnost rovněž spolupracuje s Amy Poehlerovou na jejím podcastu a uzavřela dohodu se společností Netflix o distribuci vybraných pořadů na této streamovací platformě.
Společnost pokračuje v uzavírání hudebních dohod s nahrávacími společnostmi a vydavateli, aby mohla vyvinout připravovaný nástroj pro remixování založený na umělé inteligenci. Ten uživatelům umožní si za příplatek upravovat skladby podle vlastních představ.
Spotify Technology SA (NYSE:SPOT) is heading into its third-quarter results with scope for improving advertising growth, moderating cost pressures and a potential artificial intelligence product launch providing catalysts for the shares, according to Jefferies.
The investment bank reiterated its Buy rating on the music-streaming company and raised its price target to $620 from $600, citing a favorable set-up against muted investor expectations.
Gross margin will be a key focus when Spotify reports. Jefferies expects investors to look for a third-quarter margin of about 33.1%, slightly above the company’s guidance of 32.9%. That would represent a decline from the 33.4% reported in the second quarter, reflecting seasonal factors and a regulatory charge that has historically weighed on margins by 30 to 40 basis points.
Jefferies considers the guidance achievable, with room for a modest upside surprise based on historical trends. Fourth-quarter margin expectations will also be closely watched, with investors looking for around 33.7%, below the bank’s previous forecast of 34.3%.
Analysts lowered their fourth-quarter gross margin estimate but said 2026 has been an investment year, potentially limiting the sequential improvement typically seen at year-end.
Beyond margins, Jefferies expects operating expense growth to peak in the third quarter before moderating into the fourth quarter and 2027. Advertising revenue growth could also improve over the coming quarters as programmatic advertising accounts for a larger share of the business.
Another potential catalyst is an AI-powered remixing product tied to Spotify’s partnership with Warner Music Group. Jefferies expects a possible launch announcement later in 2026, although it does not include any AI-related revenue in its base-case forecasts.
Jefferies also expects US and UK subscription price increases to be announced within the next six to 12 months, while arguing that Spotify’s platform remains well positioned against concerns that AI could disrupt its business.
Spotify on Tuesday launched paid memberships, a new way for podcasters to make money from their biggest fans beyond paywalled bonus episodes. Creators can decide which perks to offer listeners, which could be bonus audio or video, fewer ads, early access to shows, or some combination of these.
The streaming service first previewed the idea at its Investor Day in May, where it also introduced AI capabilities that let listeners ask questions about what they’re listening to or watching and debuted new tools for managing creator sponsorships.
Image Credits:Spotify
As the company explained at the time, memberships would help to “create a natural path to go deeper, unlocking new and exclusive experiences for fans and new revenue opportunities for creators.”
The feature is now rolling out to 34 markets globally, including the U.S.
The launch is the latest example of Spotify’s effort to make its platform more attractive to podcast creators, particularly as it moves further into the video space to compete with YouTube. Though podcasters have long been able to monetize through ads, the new memberships could entice more fans to support creators by offering more than just an occasional bonus episode.
Creators keep 90% of the membership revenue and can package their benefits across multiple tiers and pricing options to appeal to fans at different levels of commitment. To qualify, podcasters must host their shows on Spotify for Creators or Megaphone, have at least 100 consumption hours, 100 listeners or viewers, and at least three published episodes.
Image Credits:Spotify
Fans will see memberships promoted on the show’s Spotify page, where they can subscribe, pay, and immediately access the exclusive content. (The company tells us that memberships will be purchased on the web, not through in-app purchases).
A handful of shows will offer memberships at launch, including “The Adam Friedland Show,” “Making Sense with Sam Harris,” “Shawn Ryan Show,” “The Sculpt Society,” “Two Hot Takes,” as well as YMH Studios, which is bringing memberships to 12 shows across its network.
Memberships join other Spotify monetization tools, including advertising and the Spotify Partner Program, as well as features that help creators grow their audience, like promotions, free trials, and analytics. Soon, Spotify says creators will be able to offer fans membership badges and welcome clips, too.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.
Spotify ve třetím čtvrtletí očekává tržby ve výši 5,73 miliardy USD, což představuje meziroční nárůst o 14,8 %, a zisk na akcii ve výši 3,12 USD, což je meziročně o 18,5 % méně.
Wall Street analysts expect Spotify (SPOT - Free Report) to post quarterly earnings of $3.12 per share in its upcoming report, which indicates a year-over-year decline of 18.5%. Revenues are expected to be $5.73 billion, up 14.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Spotify metrics that Wall Street analysts commonly model and monitor.
The collective assessment of analysts points to an estimated 'Total Monthly Active Users (MAUs)' of 790.07 million. Compared to the current estimate, the company reported 713.00 million in the same quarter of the previous year.
Analysts predict that the 'Premium Subscribers' will reach 305.06 million. Compared to the current estimate, the company reported 281.00 million in the same quarter of the previous year.
Analysts forecast 'Ad-Supported MAUs' to reach 499.83 million. Compared to the current estimate, the company reported 446.00 million in the same quarter of the previous year.
View all Key Company Metrics for Spotify here>>>
Spotify shares have witnessed a change of +4.1% in the past month, in contrast to the Zacks S&P 500 composite's +1.5% move. With a Zacks Rank #4 (Sell), SPOT is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Spotify má ve čtvrtletí vykázat zisk 3,12 USD na akcii, což by představovalo meziroční pokles o 18,5 %, při tržbách ve výši 5,73 miliardy USD, meziročně vyšších o 14,8 %.
Wall Street expects a year-over-year decline in earnings on higher revenues when Spotify (SPOT - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 22. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis music-streaming service operator is expected to post quarterly earnings of $3.12 per share in its upcoming report, which represents a year-over-year change of -18.5%.
Revenues are expected to be $5.73 billion, up 14.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.01% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Spotify?For Spotify, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.82%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Spotify will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Spotify would post earnings of $3.27 per share when it actually produced earnings of $3.03, delivering a surprise of -7.34%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Spotify doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Spotify Technology S.A. (NYSE:SPOT) announced Thursday that it has signed a new multiyear licensing agreement with Joe Rogan, extending a podcast partnership that began in 2020.
The agreement will keep The Joe Rogan Experience available on Spotify, with new episodes released weekly. Listeners can also continue watching or streaming the podcast on other platforms.
Joe Rogan’s Podcast Remains a Major DrawThe Joe Rogan Experience has 18 million followers and has remained Spotify’s most-followed podcast since the partnership began six years ago.
The show also ranked as the top podcast across major platforms in 2025, according to Spotify.
Its popularity stems from long-form conversations covering a wide range of subjects, helping the podcast attract a large international audience.
Rogan expressed enthusiasm about extending the agreement, describing his relationship with Spotify as highly successful and praising the company’s support.
Spotify Strengthens Its Podcast BusinessJordan Newman, Spotify’s head of content partnerships, said Rogan has built a lasting franchise that continues to attract listeners worldwide.
Newman also highlighted the growth of Spotify’s podcast business alongside the show and expressed confidence in the partnership’s future.
The renewal allows Spotify to maintain its association with one of the industry’s most popular podcasts while continuing to reach audiences across multiple platforms.
Spotify did not disclose the financial terms or specific duration of the new licensing agreement.
Deal Reportedly Mirrors Previous $250 Million AgreementAccording to a Thursday report by The Wall Street Journal, the new multiyear agreement gives Spotify licensing and advertising sales rights for The Joe Rogan Experience.
The deal reportedly carries terms similar to Rogan’s previous agreement, which allowed the podcast to reach audiences across multiple platforms and offered him potential earnings estimated at $250 million. The report cited people familiar with the matter.
The podcast also remains No. 1 in U.S. listenership, underscoring its importance to Spotify’s podcast and advertising businesses.
Separately, Piper Sandler analyst James Callahan initiated coverage of Spotify on Thursday with a Neutral rating and a $540 price forecast.
SPOT Price Action: Spotify Technology shares were up 1.34% at $519.79 at the time of publication on Thursday, according to Benzinga Pro data.
Spotify is formalizing efforts around its enterprise and developer tools business with Thursday’s launch of technology.spotify.com, a new site that will make its internal tech available to outsiders.
The company’s foray into this space is not exactly new. As Spotify points out in its announcement of the new site, it’s been offering different products to the wider tech community since 2020 when it open sourced Backstage, a platform and framework for building customizable developer portals.
It has also been selling its enterprise-focused software experimentation platform Confidence since 2023 and its enterprise software development platform Portal since 2024. Earlier this year, it began selling its developer tool for managing AI coding agents, Xirp.
While many technology companies build their own internal systems to help their developers work more efficiently, it’s somewhat unusual to see a company like Spotify sell those tools to other businesses.
Spotify’s SVP of Technology & Platform, Tyson Singer, acknowledged that the company’s move into this space has raised questions.
“I get asked a version of this question every day: why is Spotify in the business of selling software?,” he wrote in a post on Spotify’s engineering site. “The truth is, the Spotify you know and love is more than a great streaming service. Behind our consumer app are hundreds of cross-functional squads shipping products and code day in, day out,” he explained.
The new technology website will house the solutions Spotify has built to serve its own audience of 777 million monthly active users, including both open source and paid services.
Though AI has made building such software faster, Spotify points out that this doesn’t necessarily mean it’s simpler — “the complexity, the cost and the operational surface area all grow with it,” Singer wrote. The company’s bet is that, despite AI’s advances, software development teams will still require certain core services, like those Spotify sells, which it says will be agent-ready.
So far, it’s unclear how much revenue Spotify’s enterprise sales are generating, as the company hasn’t disclosed those figures in its financial reporting. That could potentially change as Spotify makes a more concerted push into the enterprise market, turning what was once a side business into a more formal operation.
The technology website doesn’t include pricing; instead, companies can fill out a form to contact sales and discuss their needs.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.
Spotify má hodnocení Zacks Rank č. 4 („prodat“), protože konsenzuální odhad EPS pro letošní rok se za posledních 30 dní snížil o 2,6 %; akcie za poslední měsíc ztratily 7,7 %.
Spotify (SPOT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this music-streaming service operator have returned -7.7%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Spotify falls in, has gained 9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Spotify is expected to post earnings of $3.12 per share, indicating a change of -18.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $13.85 points to a change of +16.5% from the prior year. Over the last 30 days, this estimate has changed -2.6%.
For the next fiscal year, the consensus earnings estimate of $17.48 indicates a change of +26.2% from what Spotify is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Spotify is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Spotify, the consensus sales estimate of $5.76 billion for the current quarter points to a year-over-year change of +15.3%. The $22.61 billion and $25.75 billion estimates for the current and next fiscal years indicate changes of +16.4% and +13.9%, respectively.
Last Reported Results and Surprise HistorySpotify reported revenues of $5.55 billion in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $3.03 for the same period compares with -$0.48 a year ago.
Compared to the Zacks Consensus Estimate of $5.55 billion, the reported revenues represent a surprise of 0%. The EPS surprise was -7.34%.
Over the last four quarters, Spotify surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Spotify is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Spotify. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Spotify rozšiřuje nabídku audioknih na více než 180 trzích, čímž ji zpřístupní více než 750 milionům uživatelů. Nabídka zahrnuje více než 350 000 titulů ve více než 120 jazycích.
Spotify announced on Wednesday that it’s expanding audiobook access to over 180 markets worldwide, including regions across Europe, the Americas, the Caribbean, the Middle East, Africa, and Asia. The rollout is starting today and will continue over the coming months. With this move, more than 750 million users will be able to access audiobooks, allowing Spotify to better compete with both music streaming providers and audiobook apps like Audible.
Before this, audiobooks were available primarily in English-speaking markets like the U.S., U.K., Ireland, Australia, and New Zealand, as well as in Germany.
The audio platform said it has more than 350,000 titles for its new markets and has increased its collection to include over 120 languages. With its launch in Spain, users in the country will have access to over 45,000 titles in Spanish.
Spotify is working with more than 300 publishers worldwide, including Planeta and Mondadori, to increase the number of titles available in different markets.
With a Premium subscription, users can listen to 12 hours of audiobooks in eligible countries such as Brazil, Mexico, Colombia, Poland, Chile, Norway, and Peru. People across the world can also purchase an Audiobook+ standalone subscription to get access to titles with a 15-hour allowance. Alternatively, users can buy individual titles directly.
Spotify is also adding an Audiobook+ add-on for student plans in select regions in November. The company said that since its launch last year, Audiobook+ has gained over 1 million subscribers and has fetched over 100 million in annual recurring revenue for the platform.
In February, the company launched a “Page Match” feature, which lets users scan a page of a physical book and find the corresponding point in the audiobook to listen to. Since the launch, 1 million people have been using the feature monthly, the company noted.
Spotify said that over the last year, monthly listeners of audiobooks grew by 40% and listening hours increased by 30%.
This year, the company introduced Audiobook Charts to let people discover popular titles. It also launched an AI-powered tool for authors to turn their books into audiobooks using models from ElevenLabs. Plus, Spotify started experimenting with physical sales of books through its audiobook platform in select markets like the U.S. and the U.K.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Ivan covers global consumer tech developments at TechCrunch. He is based out of India and has previously worked at publications including Huffington Post and The Next Web.
You can contact or verify outreach from Ivan by emailing [email protected] or via encrypted message at ivan.42 on Signal.
Trust Division společnosti Central Pacific Bank ve třetím čtvrtletí zvýšila svůj podíl ve Spotify Technology o 28,8 % na 4 760 akcií v hodnotě 2,32 milionu USD.
Central Pacific Bank Trust Division grew its stake in shares of Spotify Technology (NYSE:SPOT – Free Report) by 28.8% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 4,760 shares of the company’s stock after purchasing an additional 1,063 shares during the quarter. Central Pacific Bank Trust Division’s holdings in Spotify Technology were worth $2,320,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also recently made changes to their positions in the company. Montanova Capital LLC boosted its holdings in shares of Spotify Technology by 9,154.5% during the second quarter. Montanova Capital LLC now owns 101,800 shares of the company’s stock worth $46,739,000 after purchasing an additional 100,700 shares during the period. Sycale Advisors NY LLC increased its holdings in Spotify Technology by 89.6% during the 4th quarter. Sycale Advisors NY LLC now owns 36,075 shares of the company’s stock valued at $20,949,000 after purchasing an additional 17,050 shares during the period. HS Management Partners LLC bought a new position in Spotify Technology during the 2nd quarter valued at approximately $13,404,000. Ally Financial Inc. raised its position in Spotify Technology by 100.0% during the 2nd quarter. Ally Financial Inc. now owns 7,000 shares of the company’s stock valued at $3,214,000 after purchasing an additional 3,500 shares during the last quarter. Finally, Plato Investment Management Ltd purchased a new stake in Spotify Technology in the 2nd quarter worth approximately $1,363,000. Institutional investors own 84.09% of the company’s stock.
Analyst Ratings Changes Several equities analysts have recently issued reports on the company. Wells Fargo & Company reduced their target price on Spotify Technology from $600.00 to $570.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Cantor Fitzgerald lifted their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. UBS Group decreased their price objective on shares of Spotify Technology from $690.00 to $675.00 and set a “buy” rating for the company in a report on Monday. Wall Street Zen cut shares of Spotify Technology from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, Benchmark cut their target price on shares of Spotify Technology from $695.00 to $650.00 and set a “buy” rating on the stock in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $592.75.
View Our Latest Stock Analysis on SPOT Spotify Technology Stock Up 2.1% NYSE SPOT opened at $482.92 on Tuesday. The firm has a market capitalization of $99.42 billion, a PE ratio of 30.07, a P/E/G ratio of 1.45 and a beta of 1.61. The stock’s 50 day moving average is $517.61 and its 200 day moving average is $493.27. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $700.12.
Spotify Technology (NYSE:SPOT – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The business had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.47 billion. During the same quarter last year, the company posted ($0.42) EPS. Spotify Technology’s revenue for the quarter was up 13.9% compared to the same quarter last year. On average, research analysts anticipate that Spotify Technology will post 13.85 earnings per share for the current year.
Trending Headlines about Spotify Technology Here are the key news stories impacting Spotify Technology this week:
Positive Sentiment: UBS maintained a constructive outlook and said Spotify is expected to continue progressing toward its financial targets despite increased platform-investment costs. The bank believes new products and features can create more monetization opportunities and improve operating leverage. Its AI-powered Remix tool could launch by late 2026 or early 2027. Spotify expected to make progress towards financial targets, UBS says Positive Sentiment: UBS retained a Buy rating, indicating it still sees substantial long-term upside for SPOT. The investment case centers on differentiated products, feature innovation and stronger monetization of Spotify’s large user base. Spotify’s Differentiated Products Support Additional Monetization Opportunities Neutral Sentiment: UBS lowered its price target from $690 to $675 while keeping the Buy rating. The reduction reflects some caution around investment-related costs, but the revised target still implies meaningful upside relative to the referenced trading level. Neutral Sentiment: Spotify’s marketing and brand-engagement initiatives are drawing attention ahead of earnings. Analysts expect revenue growth but are also watching for a possible decline in earnings per share, making profitability and conversion of user engagement key investor issues. Is Spotify Prioritizing Brand Engagement Over Profit Discipline As Earnings Expectations Shift? Negative Sentiment: Consumer-demand commentary suggested some listeners may be favoring Apple Music over Spotify, raising concerns about competitive pressure and potential slowing engagement growth. A sustained shift toward Apple could weigh on subscriber growth, pricing power and monetization. Consumers Tuning Out SPOT in Favor of AAPL Insider Buying and Selling at Spotify Technology In related news, CEO Alex Norström sold 5,436 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the sale, the chief executive officer directly owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This represents a 7.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the sale, the chief executive officer owned 20,025 shares of the company’s stock, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 47,182 shares of company stock valued at $24,677,392 over the last 90 days. Corporate insiders own 0.40% of the company’s stock.
Spotify Technology Company Profile (Free Report)
Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.
Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.
Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.
Featured Articles Five stocks we like better than Spotify Technology NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Want to see what other hedge funds are holding SPOT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Spotify Technology (NYSE:SPOT – Free Report).
Receive News & Ratings for Spotify Technology Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Spotify Technology and related companies with MarketBeat.com's FREE daily email newsletter.
UBS čeká, že Spotify ve třetím čtvrtletí zvýší tržby o 14,7 % očištěné o vliv měnových kurzů na 4,97 mld. EUR a provozní zisk dosáhne 674 mil. EUR, navzdory vyšším výdajům na AI a marketing.
UBS remains constructive on Spotify Technology SA (NYSE:SPOT) and expects the streaming company to continue progressing towards its financial targets despite higher costs from investments in its platform.
The Swiss investment bank said Spotify’s new products and features should create additional monetization opportunities and improve operating leverage, with the artificial intelligence (AI) Remix tool potentially launching by the end of 2026 or early 2027.
UBS expects third-quarter revenue of €4.97 billion, up 14.7% on a foreign exchange-neutral basis, with gross margin rising 130 basis points year on year to 32.9%.
The bank forecasts 5 million net additions to premium subscribers, supported by new features including taste profile management and prompted playlists and podcasts, while premium revenue is expected to grow 15.2% on a foreign exchange-neutral basis.
Advertising revenue growth is forecast to accelerate to 8.6% as comparisons with last year ease and self-service and programmatic channels continue to expand.
UBS expects operating income of €674 million, slightly above Spotify’s €670 million guidance, despite operating expenses rising 18% year on year as the company increases spending on AI and marketing.
For the fourth quarter, UBS forecasts revenue growth of 13.6% on a foreign exchange-neutral basis to €5.2 billion, with 10 million premium net additions and slower average revenue per user growth as last year’s price increases fall out of comparisons.
The bank largely maintained its 2026 forecasts, including revenue of €19.5 billion, 33.2% gross margin and free cash flow of €3.4 billion, up 19% year on year.
UBS expects Spotify to deliver similar 14% foreign exchange-neutral revenue growth in 2027, with gross margin expanding to 34.2% as its product mix improves and operating expense growth normalizes.
UBS cut its price target to $675 from $690 while maintaining its 'buy' rating, valuing Spotify at 24 times forward EBITDA and citing a valuation of about one time growth.
Spotify (SPOT - Free Report) ended the recent trading session at $497.51, demonstrating a -2.45% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
Coming into today, shares of the music-streaming service operator had lost 6.85% in the past month. In that same time, the Computer and Technology sector gained 6.26%, while the S&P 500 gained 0.96%.
The upcoming earnings release of Spotify will be of great interest to investors. The company's earnings report is expected on October 22, 2026. The company is predicted to post an EPS of $3.24, indicating a 15.4% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.76 billion, up 15.31% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.16 per share and revenue of $22.57 billion. These totals would mark changes of +19.09% and +16.12%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 36.03. This valuation marks a premium compared to its industry average Forward P/E of 18.89.
It's also important to note that SPOT currently trades at a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SPOT's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Bank of America potvrdila pro Spotify doporučení Buy a cílovou cenu 685 USD. Vidí růst díky novým monetizačním nástrojům, včetně audioknih, videopodcastů a funkcí AI.
Bank of America is standing firmly behind streaming giant Spotify Technology SA (NYSE:SPOT) despite a rough week for the stock.
In a note Friday, the bank reiterated its Buy rating and $685 price target, pushing back against any narrative that the company's growth story is faltering.
BofA analysts called Spotify "a uniquely positioned multi product global platform" with a growing number of products and monetization levers.
The bank pointed to the company's recent investor day, where Spotify laid out a shift in strategy from scaling its user base to monetizing and segmenting its existing market, while noting the company still has "an extremely long runway for subscriber growth."
Analysts highlighted Spotify's expansion beyond its core music subscription business into audiobooks, video podcasts, fitness, ticketing, social features, AI-enabled experiences and deeper personalization.
According to the note, Spotify is moving away from a one-size-fits-all subscription structure toward a more stratified product mix with variable, consumption-based pricing. The company is working to preserve the value of its core Premium tier while giving highly engaged users more ways to spend, through products such as Audiobooks+ and upcoming AI-driven music tools.
BofA said most add-ons are expected to be margin accretive over time, and that the company's long-term financial model doesn't depend on any single new product succeeding at scale.
The bank also said Spotify has established an operating model capable of supporting continued product investment alongside sustainable profit and free cash flow growth. While CY26 operating expenses are elevated, BofA expects that spending growth to moderate, and it sees ample opportunity for capital returns over the intermediate term.
BofA also pointed to five drivers of longer-term profit growth: deeper subscriber penetration, price increases, new pricing tiers, advertising improvement in the second half of 2026, and new businesses.
The bank noted audiobooks have yet to roll out across the large Spanish-speaking population, calling it an untapped opportunity.
Spotify plánuje AI doplňky, video a další vertikály, aby rostl mimo hudbu. Audioknižní doplněk už dosáhl 100 milionů EUR v ročních opakovaných tržbách.
3 Companies That Could Thrive While the Fed Holds Rates SteadySpotify Technology NYSE: SPOT Co-CEO, Chief Product Officer and Chief Technology Officer Gustav Söderström outlined the company’s strategy for using artificial intelligence, expanding into additional media formats and monetizing highly engaged users during an investor conference appearance.
Söderström, who became co-CEO alongside Alex Norström in January after serving as Spotify’s chief product and technology officer, described AI as the next major technology shift for the company. He compared the opportunity with earlier shifts including broadband, smartphones and connected devices, which Spotify sought to use to expand its position.
Get Spotify Technology alerts:
MarketBeat Week in Review – 06/08 - 06/12“The job for me and Alex… is to be able to understand technology deeply, try to understand what it means for Spotify, for the business model, reposition the company to turn it into a tailwind, and then ride it,” Söderström said.
Building an Intelligent Media Service Söderström said Spotify has been rebuilding its product to become what he called “the first truly intelligent media service.” He said consumers increasingly expect to interact conversationally with digital services, including asking questions about artists, songs, touring schedules and music credits without leaving the platform.
Spotify's "North Star" Outlook Was Music to Investors EarsSpotify has added music videos and capabilities intended to answer questions about bands, producers, samples and live performances, he said. The company believes its access to licensed and proprietary information, combined with broader real-time information, can support a more interactive user experience.
The executive also said AI is changing the economics of software by introducing inference costs that rise with usage. Spotify’s existing experience managing per-stream content costs, particularly in its free tier, could help it manage that transition, according to Söderström.
He pointed to audiobooks as an example of Spotify’s approach. The company includes about 15 audiobook listening hours in Premium and offers additional listening hours as add-ons for heavier users. Söderström said the audiobook add-on business had reached €100 million in annual recurring revenue after about a year, exceeding the company’s expectations.
Spotify plans to apply a similar model to AI-powered features, he said: offering a baseline amount of functionality in free and paid tiers while allowing users with greater usage needs to pay for additional access.
Free access is intended to broaden Spotify’s potential market. Premium subscriptions can bundle additional content and features. Add-ons are designed to monetize users with higher engagement and potentially higher average revenue per user. Growth, Pricing and New Verticals Söderström said Spotify sees opportunities to expand beyond music, podcasts and audiobooks into more verticals. He cited fitness as one example, arguing that Spotify is already used during activities such as running, gym sessions, commuting, studying and social gatherings.
He also emphasized the company’s focus on subscription retention rather than maximizing time spent on the platform. Söderström said a survey of Spotify users and non-users found that respondents regretted less than 10% of the time they spent on Spotify, while some other services had much higher levels of reported regret.
Because Spotify derives roughly 90% of its revenue from subscriptions, Söderström said the company is focused on providing valuable time rather than simply seeking the highest possible engagement. He said the company’s strategy is to become “the lowest regret or the most valuable time spent on the internet.”
On pricing, Söderström said Spotify held its standard price near €9.99 for an extended period while adding catalog depth and product features. The company has since raised prices and has not experienced the churn it expected from those increases, he said. Spotify is also priced above competitors in certain markets without seeing material churn, according to Söderström.
“The value always has to be vastly bigger than the price you are paying,” he said, adding that Spotify plans to continue adding value to Premium while developing more add-ons across music, podcasts, audiobooks and other categories.
AI Music Tools and Rights Holders Addressing generative music, Söderström said Spotify intends to pursue tools for remixes and covers involving existing intellectual property while seeking permission from rights holders and giving artists the ability to opt in.
He said other generative music services are largely focused on creating new music, while remixes and covers involve copyright considerations. Spotify believes its existing relationships with artists and rights holders position it to create a legal framework for AI-assisted versions of established songs, he said.
Söderström said Spotify has been training its own generative music model and has made progress with Universal Music Group on cover modeling. The company’s next step is expected to be a research preview, through which users could compare versions of generated remixes and provide preference data to improve the model.
Spotify’s nearly 800 million users could provide significant scale for that feedback process, Söderström said. Artists would not be required to participate, but he argued that fan-created remixes and covers could increase an artist’s share of streaming activity and royalties.
Video, Emerging Markets and User Targets Spotify has also expanded video capabilities across podcasts and music. Söderström said podcast video grew 50% year over year on Spotify and that the service now hosts more than 500,000 video shows. He said younger podcast audiences increasingly expect video, while older users remain more likely to consume audio-only shows.
The company introduced its Spotify Partner Program to support video podcast creators by reducing Spotify advertising within Premium and paying creators from the Premium revenue pool, Söderström said. He added that music videos have been particularly important for discovery, with songs that have video 24% more likely to be streamed or saved than songs without video, according to Spotify’s data.
Looking toward 2030, Spotify has said it is targeting 1 billion monthly active users and has a longer-term ambition of reaching 1 billion subscribers. Söderström said emerging markets are expected to drive much of the user growth, while more mature markets continue to convert free users into paid subscribers over time.
He said Spotify has tested individualized advertising load and conversion gates in India to maintain the desired monetization trajectory. Over the next year, Söderström said he hopes Spotify can demonstrate multiple successful add-on products and further develop interactive features, including personalized running playlists that can match music tempo to a user’s requested cadence.
About Spotify Technology (NYSE:SPOT)Spotify Technology SA is a Luxembourg-based audio streaming company that operates the Spotify platform. The service gives users access to a broad catalog of music, podcasts and audiobooks, with features for searching, discovering, creating and sharing audio content across connected devices.
Spotify offers an ad-supported service at no subscription cost and paid Premium plans that provide additional features, including ad-free listening and offline playback. The company generates revenue primarily through subscriptions and advertising, while working with music labels, publishers, podcast creators and other rights holders to distribute content.
Founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched its streaming service in 2008.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Spotify Technology Right Now?Before you consider Spotify Technology, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Spotify Technology wasn't on the list.
While Spotify Technology currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Spotify za poslední měsíc přidal asi 16 % po zveřejnění výsledků za 2. čtvrtletí, kdy tržby vzrostly o 14 % na 5,55 mld. USD, ale zisk na akcii zaostal za odhady.
It has been about a month since the last earnings report for Spotify (SPOT - Free Report) . Shares have added about 16% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Spotify due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Spotify's Q2 EarningsSpotify Technology S.A. reported second-quarter 2026 earnings of $3.03 per share, missing the Zacks Consensus Estimate of $3.27 by 7.3%. The company had incurred a loss in the year-ago quarter. Higher marketing, cloud and artificial intelligence spending weighed on the bottom line.
Revenues of $5.55 billion increased 14% year over year on a reported basis and 15% at constant currency. The figure beat the consensus estimate by a slight margin. Premium subscribers reached 300 million, exceeding management’s guidance by one million.
SPOT's User Growth Reaches New HighsMonthly active users, or MAUs, increased 12% year over year and 2% sequentially to 777 million. Spotify added 16 million MAUs during the quarter, one million below its guidance. Growth was recorded across all regions, with notable strength in Europe and North America.
Premium subscribers rose 9% year over year and 2% from the prior quarter. Net additions totaled seven million, exceeding the company’s forecast by one million. Ad-supported MAUs advanced 14% year over year to 494 million, reflecting continued expansion of Spotify’s global audience.
Spotify's Premium Revenues Gain MomentumPremium revenues increased 15% year over year to €4.33 billion. On a constant-currency basis, revenues grew 16%, supported by subscriber gains and higher pricing. Premium average revenue per user increased 7% to €4.89, or 7.4% excluding currency effects.
The benefits of price increases were partly offset by product and geographic mix. Management also highlighted improving engagement, with active days among global subscribers increasing. The company continues to add value through services such as Reserved concert-ticket access, personalized podcasts and additional audiobook offerings.
SPOT's Margins Expand Despite SpendingGross profit increased 21% year over year to €1.60 billion. Gross margin expanded 193 basis points to a record 33.4%, topping management’s forecast of 33.1%. Premium gross margin reached 34.9%, helped by revenue growth outpacing music costs, net of marketplace programs, audiobook expenses and video-podcast costs.
Operating expenses increased 3% to €941 million. Excluding currency movements and social charges, expenses rose 19%, mainly because of temporary investments in marketing, cloud infrastructure and AI initiatives. Operating income climbed 61% to €655 million, while operating margin expanded to 13.7% from 9.7%.
Spotify's Ad Business Starts to StabilizeAd-supported revenues increased 1% year over year to €446 million, or 3% at constant currency. Growth in music-advertising impressions was partially offset by softer pricing. Podcast advertising benefited from sponsorship gains across Spotify’s owned and licensed portfolio.
Automated sales channels represented nearly 40% of ad-supported revenues, up from slightly more than 30% in the first quarter. Active advertisers increased 60% year over year. Management completed its price-optimization work and migrated ad inventory to an in-house ad server, supporting its expectation for double-digit advertising growth in the second half of 2026.
SPOT's Cash Flow Supports BuybacksFree cash flow increased 14% year over year to €797 million, marking a record second-quarter performance. The improvement reflected higher net income adjusted for noncash items, partly offset by working-capital movements. Trailing 12-month free cash flow reached €3.3 billion.
Spotify ended the quarter with €9.4 billion in cash, restricted cash and short-term investments. The company repurchased $662 million of shares through Aug. 3, 30% more than during the comparable 2025 period. It has bought back nearly 2.2 million shares since resuming repurchases in 2025.
Spotify Guides for Continued Q3 GrowthFor the third quarter of 2026, Spotify expects MAUs of 788 million, implying 11 million sequential additions. The outlook incorporates product optimization in emerging markets that is intended to improve free-to-paid conversion. Premium subscribers are projected to reach 305 million, representing five million net additions.
Revenues are forecast at approximately €5 billion, indicating 17% year-over-year growth. Spotify expects a gross margin of 32.9% and operating income of €670 million. Management continues to anticipate about €200 million of incremental marketing and AI-related operating expenses in 2026, while expecting full-year gross and operating margins to improve.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -12.06% due to these changes.
VGM ScoresCurrently, Spotify has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Spotify has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSpotify belongs to the Zacks Internet - Software industry. Another stock from the same industry, Palantir Technologies Inc. (PLTR - Free Report) , has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Palantir Technologies reported revenues of $1.94 billion in the last reported quarter, representing a year-over-year change of +92.8%. EPS of $0.41 for the same period compares with $0.16 a year ago.
Palantir Technologies is expected to post earnings of $0.41 per share for the current quarter, representing a year-over-year change of +95.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Palantir Technologies. Also, the stock has a VGM Score of D.
Spotify ve 2. čtvrtletí zvýšil provozní zisk meziročně o 61 % na 655 milionů EUR a volný cash flow o 14 % na 797 milionů EUR. Akcie SPOT se ale obchodují za 32,08násobek forwardového zisku, nad odvětvovým průměrem 27,33násobku.
Key Takeaways Spotify's 2026 EPS estimate implies 20.3% growth, while Q2 operating income rose 61% y/y.SPOT trades at 32.08X forward earnings versus 27.33X for its industry, raising execution pressure.Spotify's free cash flow grew 14% year over year in Q2 2026 as new products broaden monetization. Spotify Technology S.A. (SPOT - Free Report) is producing faster earnings growth, stronger cash generation and wider monetization opportunities, but the stock's valuation already reflects demanding expectations.
For investors considering whether to buy now, the debate centers on whether margin expansion and revenue growth can keep advancing fast enough to support that premium without leaving the shares exposed to execution setbacks.
Spotify's Earnings Growth Supports the Bull CaseThe Zacks Consensus Estimate for 2026 earnings is $14.30 per share, implying 20.3% growth from 2025. That outlook follows a second quarter in which operating income rose 61% year over year to €655 million and gross margin reached a record 33.4%.
Management's 2030 framework calls for a mid-teens revenue compound annual growth rate, gross margin of 35% to 40% and operating margin above 20%. Reaching those targets would extend the shift from a user-growth story toward a model with greater earnings leverage.
SPOT's Valuation Demands Strong ExecutionSPOT trades at 32.08X forward earnings compared with 27.33X for its industry. That gap leaves less room for subscriber, pricing or margin results to fall short of expectations.
Image Source: Zacks Investment Research
The latest quarter also produced a 7.3% negative earnings surprise, while the 2026 earnings estimate declined 1.5% over the past four weeks. A premium multiple paired with softer estimate revisions makes consistent execution more important to the near-term investment case.
Spotify's Cash Flow Adds Financial FlexibilityFree cash flow reached €797 million in the second quarter, up 14% year over year, and totaled €3.3 billion over the trailing 12 months. The company ended the quarter with €9.4 billion in cash, restricted cash and short-term investments.
Spotify had no debt other than lease liabilities. It also repurchased $662 million of shares year to date through Aug. 3, giving management room to balance growth investment, potential acquisitions and capital returns.
SPOT Faces Content and AI Spending RisksSpotify still depends on licenses from major and minor rights holders, keeping royalty and content economics central to margin performance. Management expects marketing and artificial intelligence initiatives to add about €200 million of operating expenses in 2026.
Competition adds another execution test. Apple Inc. (AAPL - Free Report) offers Apple Music as an ad-free subscription across Apple devices and other platforms. Amazon.com, Inc. (AMZN - Free Report) markets Amazon Music Unlimited with 100 million songs and offline listening, giving consumers another broad subscription alternative.
Spotify's Monetization Runway Still Has DepthSpotify is expanding beyond traditional music subscriptions through audiobooks, artificial intelligence-driven discovery, creator tools, live-event features and advertising. Audiobooks+ has passed $100 million in annual recurring revenue, while audiobook penetration among Premium listeners more than doubled during the year.
Other products are broadening engagement. Prompted Playlists reached 14 million users among the first 100 million offered the feature, while nearly 50 million people use Jam each month. These initiatives could deepen monetization if engagement gains translate into retention, add-ons or advertising demand.
SPOT's Style Scores Favor Growth Over ValueFor investors weighing whether Spotify is worth buying now, the company's earnings growth, cash flow and monetization runway are meaningful positives, but the valuation premium and reinvestment requirements argue for a measured view rather than an aggressive entry thesis.
SPOT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spotify’s Growth Score of A reflects favorable growth characteristics, while the Value Score of D and Momentum Score of F are less supportive. The VGM Score of C points to a mixed overall profile, consistent with waiting for a more favorable balance between growth, valuation and near-term momentum.
Spotify začne označovat profily interpretů vytvořené pomocí AI štítkem „AI Persona“ a jejich hudbu vyřadí z redakčních i algoritmických doporučení. Štítky se objeví od příštího měsíce.
Spotify will begin labeling AI-generated artists with “AI Persona” profile tags and ban their music from its editorial and algorithmic recommendations, the company announced on Tuesday.
In mid-September, Spotify users will see “AI Persona” badges appear on some artists’ profiles that signal the artist’s identity is AI-generated, instead of representing a real person. While Spotify will allow artists to identify themselves as AI Personas, the company says it won’t rely on self-disclosure alone.
Image Credits:Spotify It will also review artist profiles and identify those where the artist’s name and imagery appear to represent photorealistic AI-generated identities. Spotify said it will begin its review with profiles that have met pre-defined audience thresholds to ensure the more listened-to artists are covered first.
Once labeled, the AI Persona badges will appear on the artist’s profile in the banner and the About section, in Search, and on track rows across playlists.
By default, Spotify won’t include AI Personas in its editorial or algorithmic recommendations, nor will it add AI Personas’ music to users’ personalized recommendations — unless they happen to follow an AI Persona. Only users can choose to follow an artist, so it’s an explicit signal that the user wants to hear more music from that person or group.
Image Credits:Spotify The move is the latest expansion of Spotify’s AI policies, which detail guidelines for how AI-generated music appears on its service. First announced in September 2025, Spotify’s current policy identifies and labels AI music using industry-standard techniques, and bans unauthorized AI voice clones and deepfakes from its platform.
Like others in the music industry, Spotify is attempting to balance innovations driven by AI, like its own AI-powered Prompted Playlists, AI DJ and chat, and forthcoming AI remixes, while still managing to thwart the deluge of AI-generated slop — low-quality content that AI has made it easier to mass produce. Allowing slop to proliferate could lead to a poor user experience and subscription cancellations.
Spotify also notes that artists will be able to appeal their AI Persona label if they think it’s been incorrectly applied.
Image Credits:Spotify Signaling its understanding of a growing consumer backlash against AI-generated art, Spotify wrote in its announcement that, “while we believe all artists have creative choice in determining how they present themselves, Spotify’s programming is focused on elevating music from authentic artists building careers in music.”
However, the company clarified that an AI Persona is a judgment on the artist’s profile, not the music.
“Although there’s a broad spectrum in how artists use AI as a creative tool, the question of whether a profile represents an actual human is one where Spotify can help make a clear determination. This badge is about the artist’s public identity, not about how the music was made,” the company said.
Information about how the music itself was made will continue to be available through Spotify’s other features, like AI Credits and SongDNA.
In the months ahead, Spotify will also roll out a tool that allows users to report artist profiles that appear to be AI Personas that haven’t yet been labeled.
The addition of the labels will also help Spotify users to differentiate between AI Personas and the forthcoming AI-generated remixes and covers, soon to be permitted by Spotify’s recent licensing deals with labels UMG and Merlin. The latter will allow for fan-made remixes and covers, while still funneling money back to the participating artists.
As for the AI Personas, Spotify says artists will be able to self-disclose starting on August 11, 2026, through Spotify for Artists. The labels themselves will appear starting next month.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.
It has been a volatile year for the stock market, with investors having to navigate the ongoing geopolitical tensions in the Middle East, new leadership at the Federal Reserve, and a series of new tariffs imposed by the Trump administration. But Spotify (SPOT +4.33%) stock is down 37% from its all-time high for a different reason.
The company operates the world's largest music streaming platform, and management is currently investing less aggressively in growth in order to prioritize profitability. The strategy is working very well, but it has forced investors to reconsider Spotify's previously elevated valuation.
According to Wall Street, the recent dip might be a great buying opportunity. The majority of analysts tracked by The Wall Street Journal have rated Spotify stock a buy, with none recommending selling. Plus, their average price target points to substantial potential upside over the coming 12 months. Here's why their bullishness might be justified.
Image source: Getty Images.
Transforming the user experience through technology Most music streaming services offer similar content catalogs, because a small handful of record labels control most of the industry's rights, and they want their artists to reach the widest possible audience. Therefore, Spotify can only differentiate its service from the competition by offering a better user experience, and it's leaning heavily on technologies like artificial intelligence (AI) to do so.
Spotify has a growing portfolio of AI-powered features that are driving engagement. There is Prompted Playlist, which will curate custom music playlists based on a description provided by the user. Then there is AI DJ, which autonomously plays songs based on a user's listening history, complete with a software-powered voiceover.
Over the last few weeks, Spotify started rolling out a niche feature called Running Mode, which is tailored to the fitness community. A user can tell Spotify to craft a playlist based on the length of their workout, and it will group a series of appropriate songs together based on their beats per minute, and the user's individual tastes.
The more time a paying subscriber spends on Spotify, the more likely they are to stick around for the long term. The more time a free user spends on the app, the more likely they are to convert into a paying subscriber. That is why the company is focusing so heavily on developing features to lift engagement.
Sacrificing revenue growth for higher profits During the second quarter, Spotify had a record 300 million premium subscribers, and another 494 million free monthly active users who were monetized by advertising. The company generated a combined $5.5 billion in revenue from both user categories, which was up 14% year over year.
Spotify could have grown its revenue even faster if it spent more aggressively in areas like marketing, but management is prioritizing profitability instead. As a result, the company increased its total operating expenses by just 3% year over year to $1.08 billion during the quarter.
With the money coming in (revenue) growing much faster than the money going out (operating expenses), Spotify managed to generate $628 million in net income during Q2, which was a massive improvement over the $99 million net loss it produced in the same quarter last year.
This is really important because Spotify will have a more sustainable business over the long term if its profits continue to increase. Over time, this will give management more flexibility to redirect money into growth initiatives like marketing and research and development, without having to rely on debt or external funding from investors.
Wall Street is very bullish on Spotify stock, and I concur The Wall Street Journal tracks 42 analysts who cover Spotify stock, and 26 of them have given it a buy rating. Seven others are in the overweight (bullish) camp, while the remaining nine recommend holding. None recommend selling.
The analysts have an average price target of $600, implying a potential upside of 26% for Spotify stock over the next 12 months or so. The Street-high target of $720 suggests the stock could soar by 51% instead.
Today's Change
(
4.33
%) $
21.13
Current Price
$
509.27
Based on Spotify's trailing 12-month earnings of $15.86 per share, its stock is trading at a price-to-earnings (P/E) ratio of 30. That is a slight discount to the Nasdaq-100 index, which has a P/E of 32.6, so Spotify might be considered undervalued.
Moreover, Wall Street's average estimate (provided by Yahoo! Finance) suggests the company could grow its earnings to $18.20 per share in 2027, placing its stock at a forward P/E of 26. In other words, the stock would have to climb by 25% over the next 18 months or so to match the P/E of the Nasdaq-100, so Wall Street's average price target of $600 certainly looks achievable.
Reaching $720 might take more time, but it will be possible in the future, particularly if Spotify's bottom line keeps improving at the current pace.
MarketBeat Week in Review – 06/08 - 06/12Spotify Technology NYSE: SPOT reported second-quarter results marked by accelerating revenue growth, record gross margin and subscriber growth that pushed its Premium base above 300 million for the first time.
Co-CEO Alex Norström said the company’s revenue rose 15% year over year on a constant-currency basis, accelerating from 14% growth in the first quarter. Gross margin reached a record 33.4%, while free cash flow continued to strengthen. Spotify added 7 million net subscribers during the quarter and ended the period with 300 million subscribers, exceeding its guidance by 1 million.
Get Spotify Technology alerts:
Spotify's "North Star" Outlook Was Music to Investors Ears“More people are choosing Spotify, they’re engaging more deeply, and they’re converting,” Norström said, adding that active days among global subscribers increased during the quarter.
Financial Results and Third-Quarter Outlook CFO Christian Luiga said monthly active users, or MAUs, grew 12% year over year, including notable outperformance in Europe and North America. Spotify added 16 million net MAUs, which was 1 million below its forecast, and ended the quarter with 777 million users.
Total revenue was EUR 4.8 billion, up 15% year over year on a constant-currency basis. Premium revenue increased about 16%, driven by 9% subscriber growth and 7.4% year-over-year growth in average revenue per user. Ad-supported revenue rose 3%, consistent with the first quarter. Operating income totaled EUR 655 million, above guidance of EUR 630 million, for an operating margin of 13.7%. Free cash flow was EUR 797 million, up 14% year over year. Peloton Stock Gives Back Gains After Upbeat Earnings ReportGross-margin performance exceeded Spotify’s guidance by 30 basis points. Luiga said the result reflected quarterly timing shifts related to growth investments and a small one-time benefit from the cancellation of Canada’s digital services tax, which allowed Spotify to reverse an accrual from prior years.
For the third quarter, Spotify forecast 788 million MAUs, representing net additions of 11 million, and 305 million subscribers, or 5 million net additions. The company expects third-quarter revenue of approximately EUR 5 billion, representing 14% growth, gross margin of 32.9% and operating income of EUR 670 million.
Luiga said Spotify continues to expect advertising revenue growth to “inflect towards double-digit growth” in the second half of 2026. The company also expects both gross margin and operating margin to improve on a full-year basis, along with meaningful growth in free cash flow.
Free-Service Changes and Advertising Buildout Spotify is making product and monetization changes in selected emerging markets, including adjustments to sign-up flows, reduced support for certain lower-end Android devices, changes to advertising load and limitations in the free tier. Norström said the moves are intended to create a higher-quality MAU base and improve monetization over time.
The changes are expected to affect third-quarter MAU growth, but Norström said they should not come at the expense of subscriber growth in the near term. He described the strategy as shifting toward a “monetization lever” after periods of strong user growth in emerging markets.
On advertising, the company said its automated sales channels represented nearly 40% of ad-supported revenue during the second quarter, up from just over 30% in the first quarter. Active advertisers rose 60% year over year to 33,000, according to Norström.
Spotify has completed its migration to an in-house advertising server, with Norström saying that 99% of impressions are now served through its proprietary ad stack. Luiga said the company’s direct-sales channel had experienced expected declines, but that price-optimization work in the channel was completed and it is now stabilizing.
Premium Features, AI and Live Events The company highlighted several new products intended to increase engagement and expand the value of its Premium offering. Its Reserved ticketing feature, launched in the U.S. with Live Nation in June, has supported multiple tours and reserved nearly 100,000 tickets through Spotify. Norström said some allocations sold out and were increased by Live Nation during the run.
Spotify said Reserved is currently focused on adding value for Premium subscribers rather than direct monetization. The product gives eligible users earlier access to tickets while helping artists reach dedicated fans, Norström said.
AI-powered features were also a central focus of the call. Spotify’s DJ feature is used by roughly one-quarter of active users, while Prompted Playlist has attracted about 14 million users out of the first 100 million users to whom it has been rolled out. Söderström said early retention trends for Prompted Playlist are promising.
The company’s large taste model, which uses data from 3.4 trillion daily platform events, has been deployed in its autoplay recommendation system. Söderström said that in the first two months following deployment, active days increased, autoplay minutes and track saves rose significantly, and autoplay drop-off declined.
Spotify also said SongDNA has been used by more than 100 million subscribers, making it among the company’s fastest-adopted features. Other recently introduced or planned products include Talk to Spotify, Personal Podcasts, Studio by Spotify, Running Mode and audiobook Prompted Playlists.
Music Add-Ons and Cost Discipline Norström said Audiobooks+ has surpassed $100 million in annual recurring revenue, while overall audiobook penetration among Premium listeners has more than doubled this year. He described add-ons as a way to drive structural ARPU growth beyond standard Premium price increases.
Spotify is also developing music remix and covers capabilities that would require artist consent, provide attribution and compensate artists, labels, publishers and songwriters. Following an agreement with Universal Music Group announced in May, Spotify said it reached a deal with Merlin, which represents more than 30,000 independent labels and distributors.
Söderström said Spotify does not need agreements with every major label before it begins a research preview of the remix product, though it wants as many participating artists as possible. He said the company plans to use listener preference data from early users to improve the model before a broader launch.
Spotify expects marketing and AI-related investments to add roughly EUR 200 million in operating expenses for 2026. Luiga said the expense increase is not structural, noting that headcount is expected to remain flat for the year. Söderström said the company’s AI costs are largely tied to compute and can be managed through its internal tools, model selection and usage controls.
About Spotify Technology (NYSE:SPOT)Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Spotify Technology Right Now?Before you consider Spotify Technology, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Spotify Technology wasn't on the list.
While Spotify Technology currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Spotify ve 2. čtvrtletí vykázal EPS 3,03 USD při očekávání 3,29 USD a tržby 5,554 mld. USD, také pod odhadem. Pro 3. čtvrtletí čeká tržby 5,0 mld. USD, nad konsensem.
The company posted second-quarter earnings of $3.03 per share, missing the analyst consensus estimate of $3.29. Revenue increased 14% year over year to $5.554 billion (4.78 billion euros), below the Street estimate of $5.600 billion.
For the third quarter, Spotify expects revenue of 5.0 billion euros, or about $5.813 billion, above the analyst consensus estimate of $5.770 billion.
The company expects Premium subscribers to reach 305 million, implying net additions of about 5 million. Monthly active users are projected to increase to 788 million, below analysts’ estimate of 793 million.
Spotify shares rose 1.7% to $486.05 in pre-market trading.
These analysts made changes to their price targets on Spotify following earnings announcement.
Rosenblatt analyst Barton Crockett maintained the stock with a Neutral and lowered the price target from $531 to $527. Cantor Fitzgerald analyst Deepak Mathivanan maintained the stock with a Neutral and raised the price target from $510 to $530. Considering buying SPOT stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Spotify přidává Merlin do své AI iniciativy pro remixy a covery, čímž se k ní dostane více než 30 000 labelů z jeho sítě. Nástroj má fungovat jen se souhlasem umělců a jako placený doplněk.
During its second-quarter earnings call on Tuesday, Spotify again teased the upcoming release of a new product that will allow music fans to leverage AI to make covers and remixes of artists’ music, with the artists’ consent.
The company also announced that Merlin, a licensing partner for independent labels and distributors, has now joined Universal Music Group (UMG) on the new AI music effort. The deal brings more than 30,000 labels from Merlin’s network to the product, which will allow fan-made covers and remixes by artists who agree to participate.
Spotify has positioned its AI music product as being significantly different from the more controversial AI music startups that have been used to create fully artificial songs. Instead, Spotify co-CEO Gustav Söderström told investors on Tuesday’s call that the company’s AI music product will be about “real artists, not fake artists.”
“We want artists to be consenting [to add] their work into this catalog, so people can play around with covers and remixes based on their art,” added co-CEO Alex Norström. “We also obviously want to give them credit. And last but not least…we not only have the consent and give credit, but we also drive the compensation for this. So, really, we’re talking about the first legal way to partake in this AI tailwind that we see coming for interactive music,” he said.
AI music has flooded streaming services. Music streamer Deezer recently noted that more than 50% of daily track uploads were generated with AI, up from 10% in January 2025.
The company told investors that a research preview of the fan remix and covers product would initially be made available to a subset of users. Spotify also noted that it would not require a full music catalog to get started. The company did not say when the preview would arrive.
The new tool will launch as a paid add-on, creating an additional revenue stream for artists, Spotify previously said.
“Our remix and covers I think is an incredibly exciting product again because there is no one else that can really do this,” Söderström said. “Normal generative music will happen with or without us. This product will not happen without us, and it needs to exist so that existing artists can participate in this.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.
Spotify ve 2. čtvrtletí překonalo 300 milionů předplatitelů Premium, ale zklamalo slabším ziskem a opatrným výhledem na 3. čtvrtletí. Akcie v premarketu oslabují o 4 %.
Spotify ve druhém kvartále dál rostlo napříč většinou klíčových metrik a poprvé překonalo hranici 300 milionů uživatelů programu Premium. Investory však zklamal pomalejší růst uživatelů, slabší ziskovost a opatrný výhled na třetí kvartál. Akcie v pre-marketu oslabují o 4 %
Hudební gigant za druhý kvartál vykázal meziroční nárůst tržeb o 14 % na 4,8 miliardy eur. Mezikvartálně tržby vzrostly o pět procent. Na celkových tržbách se z naprosté většiny podílely příjmy z prémiového předplatného, které oproti loňskému druhému kvartálu vzrostly o 15 %. Segment podporovaný reklamou vykázal meziročně růst pouze o jedno procento, mezikvartálně však přidal 16 %. Celkově byly tržby Spotify jen těsně pod očekáváním analytiků.
Spotify zvýšilo hrubou marži o dva procentní body na 33,4 %, k čemuž přispěl rychlejší růst tržeb než nákladů. Provozní zisk dosáhl 655 milionů eur, což je sice meziročně o 61 % více, mezikvartálně se však jedná o pokles o 8 %.
Slabší byl také zisk na akcii. Ten ve druhém kvartále dosáhl 2,61 eura, což je o osm centů méně, než očekával trh. Free cash flow meziročně vzrostlo o 14 % na téměř 800 milionů eur. Podobně jako v případě provozního zisku však bylo číslo za první kvartál o nižší jednotky procent vyšší.
Naprosto klíčová jsou v případě byznysových modelů založených na předplatném čísla aktivních uživatelů a jejich růst. Počet platících měsíčně aktivních uživatelů programu Premium vzrostl meziročně o 9 % na rekordních 300 milionů. Bezplatný plán podporovaný reklamou ve druhém kvartále využívalo 494 milionů lidí, což je o 14 % více než před rokem. Celkový počet měsíčně aktivních uživatelů dosáhl 777 milionů a meziročně vzrostl o 12 %. Mezikvartálně pak všechny segmenty rostly o dvě procenta. Průměrná tržba na uživatele činila 4,89 eur.
Audiočlánky, podcastový AI agent a rezervace vstupenek pro věrné posluchače
V USA firma spustila program Reserved, který umožňuje nejvěrnějším posluchačům přednostní přístup k rezervacím vstupenek na koncerty jejich oblíbených interpretů. Jedná se o společný projekt se společností Live Nation, jehož prostřednictvím se zatím prodalo téměř 100 tisíc vstupenek.
Ke dvacátému výročí Spotify spustilo speciální funkci umožňující uživatelům sledovat vývoj jejich hudebního vkusu. Během prvních šesti dní ji využilo zhruba 100 milionů lidí. Podle firmy zároveň pomohla dosáhnout historicky nejvyššího počtu nových předplatitelů získaných během jediného dne.
Spotify dále spustilo na trzích, kde jsou dostupné audioknihy, funkci namluvených článků od magazínů jako Rolling Stone, The Atlantic nebo Vogue a představilo novou desktopovou aplikaci Studio by Spotify Labs.
Nová aplikace dokáže pomocí AI generovat personalizované podcasty na základě dat, ke kterým uživatel poskytne přístup, například kalendáře nebo důležitých e-mailů. Může tak vytvářet například ranní briefing na míru. Jde o další krok ve využívání umělé inteligence podobně jako v případě Personal Podcast, jenž umožňuje generovat podcasty na základě svěřených zdrojů nebo zadaných témat.
Výhled na třetí kvartál
Interní odhady na příští kvartál jsou z pohledu trhu smíšené až mírně negativní. Počet platících uživatelů firma cíluje na 305 milionů, což odpovídá konsenzu. Mírně pod odhady je naopak očekávaný provozní zisk ve výši 670 milionů eur i celkový počet měsíčně aktivních uživatelů. Spotify očekává 788 milionů MAUs, zatímco trh by rád viděl hodnoty nad 793 miliony.
Pozitivním překvapením byl naopak výhled tržeb. Ty by měly dosáhnout pěti miliard eur, což je o 70 milionů více, než očekával trh. Hrubá marže by měla činit 33 %.
Výsledky Spotify tak po silném prvním kvartálu působí spíše rozpačitě. Důvodem je zejména pomalejší růst MAUs, nižší ziskovost a smíšený výhled na třetí kvartál. Na druhou stranu Spotify zůstává dominantním hráčem ve svém oboru se zdravou rozvahou a více než devíti miliardami eur v hotovosti. Z pohledu investora tak bude i nadále klíčové sledovat, jak se firmě daří získávat nové uživatele a převádět neplatící posluchače na předplatitele tarifu Premium.
Spotify (SPOT - Free Report) came out with quarterly earnings of $3.03 per share, missing the Zacks Consensus Estimate of $3.27 per share. This compares to a loss of $0.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -7.34%. A quarter ago, it was expected that this music-streaming service operator would post earnings of $3.72 per share when it actually produced earnings of $4.04, delivering a surprise of +8.6%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Spotify, which belongs to the Zacks Internet - Software industry, posted revenues of $5.55 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $4.76 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Spotify shares have lost about 16.3% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Spotify?While Spotify has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Spotify was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.70 on $5.7 billion in revenues for the coming quarter and $14.45 on $22.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Arteris, Inc. (AIP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +54.6%. The consensus EPS estimate for the quarter has been revised 7.7% lower over the last 30 days to the current level.
Arteris, Inc.'s revenues are expected to be $23.45 million, up 42.1% from the year-ago quarter.
NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) has released its results for the second quarter of 2026 today. Please visit investors.spotify.com to view the Shareholder Deck and other supplemental materials.
As previously announced, the company will host a live question and answer session to discuss second quarter 2026 results at 8:00 a.m. Eastern Time. Alex Norström and Gustav Söderström, our Co-Chief Executive Officers, and Christian Luiga, our Chief Financial Officer, will be on hand to answer questions. Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ226.
What: Spotify Second Quarter 2026 Financial Results Q&A Webcast
When: Tuesday, August 4, 2026
Time: 8:00 a.m. Eastern Time
Q2 2026 Update: https://investors.spotify.com/
Webcast: https://app.webinar.net/24zaxYZl1G3
Slido Event Code: #SpotifyEarningsQ226
A live webcast of the earnings call will be accessible at investors.spotify.com and a recording of the webcast will be available following the session.
About Spotify Technology S.A.
Spotify’s platform revolutionized music listening forever when we launched in 2008. Today, more listeners than ever can discover, manage and enjoy over 100 million tracks, 7 million podcast titles, and 500,000 audiobooks in select markets on Spotify. We are the world’s most popular audio streaming subscription service with 777 million users, including 300 million subscribers across 184 markets.
Spotify čeká ve třetím čtvrtletí provozní zisk 670 milionů EUR, pod odhadem trhu, protože růst uživatelů zpomaluje v Evropě a Severní Americe. Akcie v premarketu klesly asi o 5 %.
Spotify's logo at the headquarters on Regeringsgatan in Stockholm, Sweden November 18, 2025. TT News Agency/Fredrik Sandberg/via REUTERS Purchase Licensing Rights, opens new tab
Aug 4 (Reuters) - Spotify (SPOT.N), opens new tab forecast third-quarter profit below Wall Street estimates on Tuesday, after the streaming giant reported slowing user growth in major markets of Europe and North America, driving shares around 5% lower in premarket trading.
The Swedish company has launched AI features like "Personal Podcasts" and new offerings such as "Reserved" to attract more user and fend off competition from rivals including YouTube and Netflix, and AI music startups like Udio and Suno.
The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.
Spotify said it expects operating income of €670 million ($770.97 million) in the third quarter, below analysts' average estimates of €677.8 million, according to data compiled by Visible Alpha.
In the second quarter, its operating income came in at €655 million, beating estimates of €639.2 million, driven by strong revenue growth and lower payroll taxes.
Such taxes, called social charges, are tied to the value of the company's share price. The company's shares have fallen about 16% so far this year.
Its quarterly revenue rose 14% to €4.78 billion, slightly below LSEG-compiled estimates of €4.80 billion. The revenue forecast for third quarter of €5 billion was slightly above estimates of €4.93 billion.
Its monthly active users forecast of 788 million was below Visible Alpha estimates of 793.6 million, while its outlook for a 5 million increase in premium subscribers to 305 million was largely inline with estimates.
($1 = 0.8690 euros)
Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Spotify v poslední seanci vzrostl o 2,97 % na 492,32 USD a překonal širší trh. Před výsledky 4. srpna analytici čekají EPS 3,28 USD a výnosy 5,58 mld. USD.
Spotify (SPOT - Free Report) closed at $492.32 in the latest trading session, marking a +2.97% move from the prior day. This move outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.05%.
Shares of the music-streaming service operator witnessed a gain of 2.15% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.32%, and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. In that report, analysts expect Spotify to post earnings of $3.28 per share. This would mark year-over-year growth of 783.33%. Alongside, our most recent consensus estimate is anticipating revenue of $5.58 billion, indicating a 17.27% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.51 per share and revenue of $22.62 billion. These totals would mark changes of +22.04% and +16.41%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.15% lower. Spotify is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Spotify is holding a Forward P/E ratio of 32.95. This denotes a premium relative to the industry average Forward P/E of 20.12.
We can additionally observe that SPOT currently boasts a PEG ratio of 1.18. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
Spotify má podle Jefferies dodat stabilní výsledky za 2. čtvrtletí, ale trh čeká hlavně na komentáře k AI remixingu a jeho spuštění. Banka zopakovala doporučení Buy a cílovou cenu 600 USD.
Spotify Technology SA (NYSE:SPOT) is expected to report a steady second-quarter performance, with Jefferies maintaining a positive long-term view despite not anticipating a "narrative changing" earnings release.
The investment bank reiterated its ‘Bu’y rating and $600 price target, implying upside from current levels of $485, ahead of the company's results, writing that it prefers to remain positioned for potential catalysts including a Warner Music Group remixing agreement and the launch of AI-powered remixing features.
For the second quarter, Jefferies forecasts gross margin of 33.1%, in line with Spotify's guidance, while noting that a typical beat of more than 20 basis points to around 33.3% represents a reasonable upside scenario.
The analysts also view the current third-quarter Wall Street gross margin estimate of 33% as achievable, despite expected regulatory charges.
Jefferies expects constant-currency revenue growth of 15% year over year in both the second and third quarters, in line with consensus estimates.
It also forecasts second-quarter net additions of 6 million premium subscribers and 17 million monthly active users, with potential upside to MAUs from Spotify's Wrapped 20th anniversary campaign.
The analysts expect investor attention to center on management's comments about new products, particularly the timeline and adoption of an AI remixing offering.
"We'll be listening for commentary on AI remixing adoption/timeline, but given investor skepticism on uptake, remixing is ultimately a 'show-me' that we think plays out positively in the coming months," Jefferies wrote.
While the bank sees the potential for lower operating expenses, it wrote that cost reductions alone are unlikely to drive a sustained re-rating without additional revenue from new products.
Looking further ahead, Jefferies expects 2027 to benefit from new product opportunities, additional pricing initiatives and more normalized cost growth, while reiterating that evidence of incremental revenue from AI remixing could renew investor interest in the stock.
Spotify spouští pro předplatitele Premium AI asistenta podobného ChatGPT, který jim na mobilu pomůže vybrat hudbu i další audio. Funkce je zatím v beta verzi v USA, Irsku a Švédsku na zařízeních s iOS a Androidem, pro uživatele od 18 let a v angličtině.
Spotify is taking another step to infuse AI technology into its listening experience, with Tuesday’s news that Premium users will now be able to have interactive conversations with the app to choose what music or other audio they want to hear.
The feature is initially available in the U.S., Ireland, and Sweden across iOS and Android devices for users 18 years old and above in English. It’s considered a beta release, meaning that things may not always work perfectly, Spotify says, but user feedback will help to improve the product.
The company didn’t explicitly share more details about the AI technology under the hood in its announcement, but Spotify confirmed to TechCrunch that it uses a mix of its own AI technology and models from multiple providers, based on whatever is best for the task.
The addition is the latest example of how Spotify has put AI technology to use to help people interact with the app’s extensive catalog of music, podcasts, and audiobooks. The company also offers tools like an AI DJ, which speaks in an AI voice that you can engage with directly, plus AI features for building playlists with prompts and those for connecting Spotify with third-party AI chatbots, like ChatGPT.
Loading the player…
The new feature extends the ability to chat with Spotify beyond the AI DJ experience, allowing users to talk to Spotify across the app’s Home and Now Playing views on mobile devices. Users can either type or speak to the app and have back-and-forth conversations to help them choose what to play next. Beyond that, Spotify says the app will also be able to chat with users about their listening history and can help them learn more about their favorite music or go deeper into podcasts or audiobooks.
That means you could get into questions like what inspired a certain song, or dates of album releases, or even get suggestions of other artists you might like, based on what you’re playing. You can also ask about your own listening history, like when was the first time you played a certain track, or you could explore more into what sort of genres you’ve been streaming lately.
In the announcement about the new feature, Spotify also offers a few suggestions as to how to use this interactive technology. For instance, you could ask Spotify to “play some artists I haven’t heard before,” then continue to shape that selection with follow-ups, like asking it to add a specific artist by name, or narrow the selection to just more recent tracks. You could also shape the request further by asking it to be “more upbeat,” or give it other directions.
Plus, you can ask Spotify to save songs, add songs to your queue, or follow the artist via the new feature.
The feature is rolling out now to the markets on mobile devices.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.
UBS čeká, že Spotify ve 2. čtvrtletí zrychlí růst tržeb na 15,6 % FXN na 4,8 miliardy EUR. Hrubá marže má vzrůst na 33,1 % a provozní zisk na 634 milionů EUR.
Spotify Technology SA (NYSE:SPOT) is expected to post accelerating revenue growth in the second quarter, according to UBS, with results likely to come in largely in line with management's outlook on the back of price increases and stable gross margins.
The bank forecasts second-quarter revenue of €4.8 billion, up 15.6% on a foreign exchange neutral basis, compared with 14.2% growth in the first quarter.
UBS expects 6 million premium net additions, down from 8 million a year earlier, citing longer conversion times tied to new free tier features, a shift in campaign marketing timing and a tougher iOS comparison.
Premium average revenue per user is expected to grow 8.1% year over year on an FXN basis, while advertising revenue growth is expected to improve as the company laps lower podcast inventory from last year, with further acceleration anticipated in the second half as self-serve and programmatic channels expand.
UBS forecasts gross margins expanding 160 basis points year over year to 33.1%, and operating income of €634 million for the quarter.
Looking further out, UBS is largely maintaining its 2026 estimates, projecting €19.4 billion in annual revenue, up 14.3% FXN, and gross margins of 33.3%. The bank expects free cash flow of €3.4 billion in 2026, up 18% year over year, and anticipates Spotify will ramp up share buybacks following the cash repayment of its convertible notes in March.
UBS rates Spotify shares Buy and lowered its price target to $690 from $735, reflecting slightly lower EBITDA estimates on higher opex and a reduced forward multiple. The bank pointed to new AI tools and premium tier offerings as potential drivers of deeper user engagement and improved premium conversion over the medium to long term.
Spotify (SPOT - Free Report) ended the recent trading session at $493.95, demonstrating a +2.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Coming into today, shares of the music-streaming service operator had lost 4% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. The company is forecasted to report an EPS of $3.29, showcasing a 785.42% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.6 billion, reflecting a 17.66% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.62 per share and revenue of $22.67 billion. These totals would mark changes of +22.96% and +16.66%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% lower. Spotify is currently a Zacks Rank #4 (Sell).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 33.04. Its industry sports an average Forward P/E of 19.77, so one might conclude that Spotify is trading at a premium comparatively.
Investors should also note that SPOT has a PEG ratio of 1.19 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.09 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Spotify zaznamenal pokles o 3,02 %, což je výraznější než pokles S&P 500. Očekává se, že Spotify vykáže zisk 3,3 USD na akcii, což by znamenalo meziroční růst o 787,5 %.
Spotify (SPOT - Free Report) ended the recent trading session at $455.60, demonstrating a -3.02% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.22% for the day. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the music-streaming service operator witnessed a gain of 6.39% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.19%, and the S&P 500's gain of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. On that day, Spotify is projected to report earnings of $3.3 per share, which would represent year-over-year growth of 787.5%. Simultaneously, our latest consensus estimate expects the revenue to be $5.59 billion, showing a 17.4% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.68 per share and revenue of $22.69 billion. These totals would mark changes of +23.47% and +16.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.32% fall in the Zacks Consensus EPS estimate. Right now, Spotify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 32.01. This denotes a premium relative to the industry average Forward P/E of 18.64.
It is also worth noting that SPOT currently has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 36% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
