Spotify Q1 revenue slightly misses, forecasts lower-than-expected Q2 operating income

Spotify Technology

28/04/2026 11:14

Overview

Music streaming platform's Q1 revenue grew 14% yr/yr, slightly missing analyst expectations

Premium subscribers rose 9% yr/yr to 293 mln, reflecting continued net additions

Company Q1 operating income reached record EUR 715 mln, gross margin expanded to 33%

Outlook

Spotify expects operating income of EUR 630 mln for the second quarter, below LSEG-compiled analysts' average estimate of EUR 684 mln

Result Drivers

SUBSCRIBER GROWTH - Co said net additions of 3 mln premium subscribers and 10 mln MAUs contributed to revenue growth

GROSS MARGIN EXPANSION - Co attributed record Q1 operating income to expanded gross margin

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
EUR 4.50 bln
EUR 4.53 bln (27 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 35 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for Spotify Technology SA is $640.00, about 29.1% above its April 27 closing price of $495.82

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 40 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)