Spotify Q2 2026 profit forecast misses estimates, stock falls

Spotify forecast second-quarter operating income of €630 million, falling abbreviated of the €684 cardinal analysts had expected, according to Reuters. The guidance sent Spotify's banal down 12% successful premarket trading connected April 28.

Those Q2 concerns came contempt a beardown showing successful the archetypal quarter. Spotify reported grounds Q1 operating income of €715 million, with full gross reaching €4.53 cardinal — a 14% summation connected a constant-currency ground — and a gross borderline of 33%, ranking arsenic the second-best fig the institution has ever posted. Monthly progressive users climbed 12% twelvemonth implicit twelvemonth to 761 million, and premium subscribers grew 9% to 293 million.

The Q2 nett miss reflects slowing maturation successful Spotify's halfway markets. Variety reported that Spotify's Q2 targets see €4.8 cardinal successful full revenue, 778 cardinal monthly progressive users, and 299 cardinal premium subscribers — a fig that would correspond the summation of 6 cardinal paid accounts implicit the quarter.

One origin down the Q1 nett strength, Reuters noted, was a simplification successful payroll-related societal charges — costs that determination with the company's banal valuation. With Spotify shares down astir 15% successful 2026, those charges came successful little than usual, a tailwind improbable to recur astatine the aforesaid magnitude heading into Q2.

Advertising gross connected the escaped tier fell 5% arsenic reported, though stripping retired currency effects revealed a 3% gain; Spotify attributed the underlying betterment to stronger euphony advertisement impressions and maturation successful podcast sponsorship deals. Premium gross grew 10% arsenic reported, oregon 15% connected a constant-currency basis.

On the bottommost line, Variety noted that Spotify's Q1 nett income surged to €721 cardinal — much than 3 times the €225 cardinal recorded a twelvemonth anterior — boosted by €222 cardinal successful concern income and a €216 cardinal taxation benefit. Free currency travel climbed 54% to €824 million.

Alex Norström, co-CEO of Spotify, said successful a statement: "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. All that reinforces our assurance successful sustained idiosyncratic and subscriber growth, debased churn, and continued advancement connected gross and margin."

The co-CEO operation took effect astatine the opening of 2026, erstwhile Daniel Ek transitioned retired of the CEO relation to go enforcement chairman, according to Variety, with Norström and Söderström stepping into shared leadership.