Spotify (SPOT) Stock Soars 15% on Strong Earnings and User Metrics

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Spotify stock surged 15% Tuesday after reporting Q4 earnings of 4.43 euros per share versus analyst expectations of 2.74 euros.
Monthly active users increased 11% year-over-year to 751 million, beating the FactSet estimate of 744.7 million users.
Premium subscribers reached 290 million despite price hikes in the U.S. to $12.99 monthly and €11.99 in international markets.
The company’s 2025 Wrapped feature attracted 300 million users and generated 630 million social media shares, setting new records.
Q1 revenue guidance of 4.5 billion euros missed analyst forecasts of 4.58 billion due to foreign exchange pressures.

Spotify shares jumped 15% Tuesday after the streaming company delivered impressive fourth-quarter results that exceeded Wall Street expectations. The stock reached $489.72, marking the company’s largest single-day percentage gain in its trading history.

Spotify Technology S.A., SPOT

The audio streaming platform reported Q4 earnings of 4.43 euros per share, crushing the analyst consensus of 2.74 euros. Revenue came in at 4.53 billion euros, slightly above the 4.52 billion euro estimate.

Monthly active users grew 11% from the prior year to 751 million. The figure surpassed FactSet’s projection of 744.7 million users.

$SPOT (Spotify Technology) #earnings are out: pic.twitter.com/gYdbUQOQu1

— The Earnings Correspondent (@earnings_guy) February 10, 2026

Premium subscribers climbed 10% to 290 million. The growth persisted despite Spotify raising subscription prices across multiple regions throughout the past year.

The company increased U.S. premium pricing to $12.99 per month in January from $11.99. International markets saw prices rise to €11.99 from €10.99 in August 2025 across South Asia, the Middle East, Africa, Europe, and Latin America.

Record User Additions Drive Growth

Co-CEO Alex Norström called the quarter’s user additions the highest ever recorded in a single period. He attributed the growth to strong performance in Latin America and Europe, plus improvements to the mobile free tier.

Ad-supported users totaled 476 million, topping StreetAccount’s estimate of 468.9 million.

Net income jumped to 1.17 billion euros, or 4.43 euros per share, from 367 million euros, or 1.76 euros per share, in the same quarter last year.

The company’s gross profit margin reached 33.1%, beating Wall Street’s 32.9% forecast.

Wrapped Campaign Achieves Milestone Results

Spotify’s annual Wrapped feature hit record engagement in 2025. Over 300 million users interacted with their personalized year-end listening statistics.

The campaign produced more than 630 million social media shares. Spotify described it as the most successful Wrapped launch in the feature’s history.

The platform expanded beyond music during the quarter. Audiobooks became available in Denmark, Finland, Sweden, Monaco, and Iceland.

Premium subscribers receive 15 hours of audiobook listening each month. The company also announced U.S. and U.K. users will be able to purchase physical books through the Spotify app via Bookshop.org later this spring.

Spotify introduced music videos for premium members and rolled out additional AI-powered tools in Q4. Norström said leading publishers credited the platform with attracting new audiobook listeners and driving double-digit growth in the category.

For the current quarter, Spotify expects monthly active users to reach 759 million, above the FactSet estimate of 752.4 million. Premium subscribers are forecast at 293 million.

Revenue guidance for Q1 stands at 4.5 billion euros. The projection fell short of analyst estimates of 4.58 billion euros due to a 670 basis point headwind from foreign exchange rates.

Spotify forecasts a Q1 gross margin of 32.8%, higher than Wall Street’s 32.1% estimate. The stock had dropped 21% over the previous 12 months before Tuesday’s rally as concerns about revenue growth deceleration weighed on shares.

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