Stockholm, April 28, 2026, 13:41 CEST
- Spotify expects operating income to hit €630 million for the second quarter, coming in below the €684 million consensus forecast from LSEG.
- The number of premium subscribers climbed 9% to 293 million in the first quarter. Still, the company put its Q2 target at 299 million, falling short of what Wall Street had been looking for.
- U.S. premarket trading saw shares slip, with investors shrugging off the company’s record operating income from the first quarter.
Spotify shares slipped in premarket trading Tuesday. The audio-streamer projected second-quarter profit and paid subscriber gains that missed Wall Street’s targets, overshadowing a quarter that saw record operating income.
The report lands at a crucial moment for Spotify, with investors banking on margin improvements after recent price hikes, leaner operations, and moves into AI-driven music and podcast discovery. But a weaker profit outlook throws doubt on whether that turnaround narrative holds up, as growth decelerates in both Europe and North America—Spotify’s biggest regions.
Spotify is projecting operating income of €630 million for the second quarter, undercutting the €684 million consensus estimate from LSEG, according to Reuters. Premium subscribers are seen reaching 299 million—an increase of 6 million, but short of the 302 million analysts had been looking for.
Spotify’s latest filing pointed to a stronger first quarter. Monthly active users hit 761 million, up 12% from a year ago. Premium subscribers increased 9% to 293 million. Revenue ticked up 8% to €4.533 billion, with operating income landing at €715 million.
Spotify’s first-quarter profit got a lift from lower “social charges”—that’s payroll tax, partly connected to share-based pay. The company reported social charges came in €49 million under forecast, a gain reflecting share price shifts rather than anything fundamental in the music business.
Spotify’s user base topped 760 million MAU, according to Co-CEO Alex Norström, who also pointed to “healthy engagement” levels. His counterpart, Gustav Söderström, said there’s still “significant room to grow” in users, formats and engagement. Spotify
The company has rolled out personalized features like Prompted Playlist, Taste Profile, SongDNA, and expanded audiobook charts to encourage users to stay longer on the app. Prompted Playlist, the company said, is now available for podcasts in the U.S. and Canada—another step in its push to make discovery more interactive.
Investors now banking on margin gains could see those hopes dented. Price hikes, sluggish subscriber growth in core markets, and heavier spending on marketing, cloud tech, and AI all threaten to squeeze margins. Ad-supported revenue at Spotify dropped 5% during the first quarter, despite a 3% increase when measured in constant currency, which excludes currency fluctuations.
Competition is still biting. Spotify faces off with Apple and Amazon.com in the music streaming space—both can bundle music with their broader device, retail, and cloud offerings. That makes it tougher for Spotify to hang onto subscribers, especially if users start watching prices more closely.
The weak guidance followed a brighter note on ratings. MarketBeat reported Sunday that Wall Street Zen bumped Spotify up to “buy” from “hold.” Its aggregated analyst data continues to show the stock at a “Moderate Buy” consensus. MarketBeat
Spotify’s user base and cash reserves are still climbing. The company turned out €824 million in free cash flow during the first quarter, wrapped up March holding €8.8 billion across cash, equivalents, restricted cash, and short-term investments, and also bought back €306 million of its own stock. It retired €1.3 billion in exchangeable notes, too.
