TLDR
- Spotify (SPOT) stock was up about 4% in premarket trading Thursday while S&P 500 futures fell more than 1%.
- Q3 revenue was €4.97 billion, just under the €4.98 billion estimate. EPS of €2.48 missed the €2.84 estimate.
- Premium subscribers hit 306 million, one million above the company’s own forecast.
- Q4 guidance calls for €5.2 billion in revenue, 316 million subscribers and €820 million in operating income.
- The stock was down more than 8.5% in 2026 heading into Thursday.
Spotify (SPOT) stock rose about 4% in premarket trading on Thursday after the company posted third quarter results. S&P 500 futures were down more than 1% at the same time, pulled lower by chip stocks.
The stock closed at €525.34 before the report. It is up about 9% over three months but down 22% over the past 12 months.
Spotify reported revenue of €4.97 billion, or $5.58 billion, for the September quarter. Analysts surveyed by FactSet had expected €4.98 billion.
Earnings per share came in at €2.48. Investing.com listed the analyst estimate at €2.84, a gap of €0.36.
Subscribers Beat the Company’s Own Forecast
Premium subscribers grew to 306 million in the quarter. That was one million more than Spotify had guided.
For the current quarter, Spotify expects revenue of €5.2 billion. Investing.com put the analyst consensus at €5.23 billion.
The company also expects to add 10 million premium subscribers. That would take the base to 316 million.
Operating income is forecast at €820 million for the fourth quarter. Barron’s reported that figure is firmly ahead of analyst expectations.
Third quarter operating income was €672 million. Margins were squeezed a bit from earlier in the year.
Spending Concerns and the AI Angle
Spotify pointed to “temporarily elevated growth in marketing and cloud/AI spend” as a reason for the margin dip. Investors had raised concerns about that spending, including work on the AI DJ feature.
Co-CEO Alex Norström said it was a quarter where the company “did what we said.” He added that costs are moderating and there is “more runway ahead.”
Norström also said each expansion of what is on Spotify brings in new listeners. It gives current users more reasons to come back almost daily.
The stock has had a rough stretch this year. It was down more than 8.5% in 2026 heading into Thursday.
Some analysts have viewed Spotify as highly defensible against AI. The timing is a little ironic, with AI worries weighing on the broader market today.
Investing.com data showed 7 positive and 10 negative EPS revisions in the last 90 days. Its InvestingPro Financial Health score reads “great performance.”
Spotify stock is up about 3.5% in premarket trading, while S&P 500 futures are down more than 1%.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
