Catenaa, February 10, 2026 – Spotify Technology S.A. delivered a robust fourth-quarter earnings report that exceeded Wall Street expectations and reignited investor confidence. The streaming giant reported earnings per share of €4.43, well above analyst forecasts. Revenue reached €4.53 billion, also beating consensus estimates.
Investor optimism was clear. Spotify’s stock jumped sharply on the news, gaining around 15% in early trading as traders priced in stronger profit prospects.
A key driver of the strong quarter was record user growth. Monthly active users rose 11% year-over-year to 751 million, topping estimates. Premium subscribers climbed 10% to 290 million, showing steady demand for paid plans.
Spotify’s profitability also improved markedly. Net earnings surged, reflecting a significant jump from the prior year. RSS feeds cited net income rising to €1.17 billion, driven in part by cost efficiencies and price increases.
The company’s gross margin reached 33.1%, supported by disciplined expense control and rising revenue quality. This margin expansion was well received by analysts who had previously questioned Spotify’s ability to balance growth with profitability.
Heading into the first quarter of 2026, Spotify issued guidance that showed continued user momentum. The firm expects 759 million monthly active users and 293 million paid subscribers in the current quarter. Revenue is forecast at €4.5 billion. Though slightly below some estimates, the outlook was considered constructive overall.
Record user additions were partly attributed to Spotify’s campaign, which has become a viral annual growth driver. The company also continues to expand features like audiobooks, video content, and AI-powered discovery tools to deepen engagement.
Despite a challenging year marked by a stock pullback, this quarter’s results suggest Spotify may be entering a new phase of sustained user expansion and margin improvement.
