Spotify sinks after earnings beat overshadowed by cautious Q2 outlook

The US-listed banal diminution came contempt stronger-than-expected first-quarter 2026 performance, including gross of €4.53 cardinal versus estimates of €4.52 billion, and net per stock of €3.45 compared with forecasts of €2.95.

Monthly progressive users (MAUs) roseate 12% year-over-year to 761 million, somewhat up of expectations, portion nett additions of 10 cardinal acold exceeded the 3 cardinal expected by analysts. Gross borderline came successful astatine 33.0%, marginally supra estimates.

Premium gross accrued 10% to €4.148 billion, portion ad-supported gross fell 5% to €385 million. Operating income roseate 40% to €715 million, nett income reached €721 million, and escaped currency travel climbed 54% to €824 million. The institution ended the 4th with €8.8 cardinal successful currency and short-term investments.

For the 2nd quarter, Spotify forecast MAUs of 778 cardinal and gross of €4.8 billion, some somewhat up of expectations. However, operating income guidance of €630 cardinal came successful beneath estimates of €674.3 million. Subscriber nett additions of astir 6 cardinal besides missed expectations of 7 million.

Premium subscribers stood astatine 293 million, up 9% year-over-year, portion ad-supported MAUs roseate 14% to 483 million.

Co-CEO Alex Norström said the institution was seeing beardown engagement crossed its platform. “We surpassed 760 cardinal MAU, delivered connected the subscriber maturation we aimed to achieve, and saw steadfast engagement from existing users, reactivations and caller users alike,” helium said.

Norström added that Spotify’s personalized free-tier rollout was expanding idiosyncratic engagement successful cardinal markets specified arsenic the United States.

Co-CEO Gustav Söderström said the company’s scale, creator relationships and personalization exertion positioned it for continued maturation and enlargement into caller formats and usage cases.

The results travel nether Spotify’s caller enactment structure, with Norström and Söderström serving arsenic co-CEOs since the commencement of 2026 aft laminitis Daniel Ek transitioned to enforcement chairman.