New York, Feb 16, 2026, 14:47 EST — The market has shut for the day.
- U.S. markets are closed for Washington’s Birthday. Spotify finished Friday’s session 2.8% higher.
- Fourth quarter filings posted record user additions—a stronger profit and cash flow story, too.
- Price hikes are in focus for traders, along with potential AI-driven risks, as they look toward Tuesday’s reopening.
Spotify Technology S.A. stock sat out Monday, with the New York Stock Exchange shuttered for Washington’s Birthday. On Friday, shares closed up 2.8% at $458.34, tacking on a scant 0.1% after hours.
This pause is notable—SPOT’s trading has been choppy, not just tracking the broader market. Last quarter reignited an old worry for investors: can Spotify boost user numbers and still defend its margins?
The noise around this debate has only grown. Spotify is juggling two things: raising prices in select markets, and dialing up its focus on product updates. At the same time, AI-generated audio keeps worming its way into discussions about the value of paid music.
Spotify’s fourth-quarter filing with U.S. regulators showed monthly active users up 11% year-on-year, hitting 751 million. Premium subscribers rose by 10%, reaching 290 million. Revenue for the quarter came in at 4.531 billion euros, up 7%. The company posted a 33.1% gross margin and operating income of 701 million euros. Free cash flow landed at 834 million euros. Looking ahead to the first quarter, Spotify projects 759 million monthly active users, 293 million premium subscribers, revenue of 4.5 billion euros, and operating income of 660 million euros.
Spotify’s Interactive DJ tool has attracted “over 98 million paid subscribers,” with users clocking about 4 billion hours of listening, co-CEO Gustav Söderström told Reuters. He called the flood of “spammy AI music” an “old issue” that’s simply gotten bigger. Co-CEO Alex Norström pointed to emerging markets as a key source for “lots more growth,” highlighting Spotify’s expansion into podcasts and audiobooks and the competition from Apple and Amazon. Reuters
Back in January, Spotify announced it was bumping up its monthly premium plan by $1 to $12.99 across the United States, Estonia, and Latvia. The new rate rolled out for bills coming due from February onward. Finance chief Christian Luiga noted there wasn’t much of a jump in churn after the company pushed through price hikes in over 150 countries last year.
Still, some on Wall Street see AI as more of a fundamental threat to paid music streaming than just a matter of features. Jeffrey Wlodarczak at Pivotal Research lowered his rating to hold and chopped his price target way back to $420 from $875, pointing to “significant uncertainty” and what he called “massive structural changes” around AI, The Fly reported. TipRanks
Trading picks up again on Tuesday, with investors zeroing in on signs of paid plan demand as the new prices begin landing on U.S. bills. Another immediate test: can Spotify maintain its ad momentum, assuming prices remain sluggish.
Spotify is set to report its first-quarter earnings on April 29, according to Investing.com.
