Spotify Earnings Weak Q2 Outlook Hits Shares
Spotify earnings Q1 beat on adjusted EPS and user growth but weaker Q2 operating-income guidance and ad-revenue headwinds sent shares lower April 28, 2026.
KEY TAKEAWAYS
- Q1 beat on adjusted EPS and premium subscriber growth
- Q2 operating-income guidance fell below LSEG consensus and undercut the beat
- Shares dropped nearly 9% in premarket trading after the outlook
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
On April 28, 2026, Spotify Technology S.A. (SPOT) reported first-quarter results that beat expectations on adjusted earnings per share (EPS) and subscriber growth, but its guidance for the second quarter and softness in ad-supported revenue weighed on the stock in premarket trading.
Q1 Results and User Growth
Spotify posted adjusted GAAP EPS of €3.45, surpassing analyst estimates by €0.51. Revenue rose 7.9% year-over-year to €4.53 billion, slightly above forecasts. Premium revenue increased 10% year-over-year. The company reported 293 million premium subscribers, a 9% rise that included 3 million net additions. Monthly active users (MAUs) reached 761 million, up 12% with 10 million net adds.
Ad-supported revenue declined 5% year-over-year, though it grew 3% on a constant-currency basis. Currency headwinds reduced reported total revenue growth by about 600 basis points.
Weak Q2 Guidance and Market Reaction
Spotify set second-quarter operating income guidance at €630 million ($736.41 million), below the LSEG-compiled analyst average of €684 million. The company expects premium subscribers to increase by 6 million to 299 million and MAUs to rise by 17 million to 778 million.
The company released results before the market opened on April 28. Shares declined in premarket trading as investors weighed the weaker operating-income outlook and ad-revenue softness against the quarter’s strong user gains.
