Spotify (SPOT)
NYSE:SPOT
Want to see SPOT full AI Analyst Report?
Earnings Data
Report Date
Jul 29, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
3.24Last Year’s EPS
-0.49Same Quarter Last Year
Strong Buy
Based on 24 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a largely positive operational and financial picture: MAU and revenue growth accelerated, Premium ARPU and gross margin expanded, operating income and free cash flow were strong, and AI-driven product adoption is gaining traction. That said, there are notable near-term challenges: ad-supported revenue growth is muted (~+3% YoY), ad gross margins experienced short-term weakness as engagement-driven content costs outpaced monetization, and operating expenses are elevated as Spotify invests in AI compute and marketing. Management expects these investments to pay off over time with improved monetization (biddable ads, product top-ups) and has provided constructive Q2 guidance, but near-term variability and execution on ad monetization and AI-related content/legal hurdles remain risks.Company Guidance
Monthly Active Users (MAU) Growth
MAUs reached 761 million (up 10 million q/q), accelerating to +12% year-over-year (from 11% in Q4) and surpassing guidance by ~2 million, driven by free tier enhancements in North America and Rest of World.
Subscriber Growth and Premium Momentum
Net adds of 3 million subscribers in Q1 for a total of 293 million (in line with guidance); Premium revenue grew ~15% year-over-year with ARPU expanding +5.7% YoY.
Revenue Acceleration
Total revenue was EUR 4.5 billion, up +14% year-over-year (accelerating from +13% in Q4), with management guiding Q2 revenue of ~EUR 4.8 billion (~+15% YoY).
Margin and Profit Beats
Gross margin came in at 33.0%, ~133 basis points expansion YoY and ~20 basis points above guidance. Operating income was EUR 715 million, EUR 55 million above guidance (operating margin 15.8%).
Strong Free Cash Flow and Balance Sheet
Free cash flow of EUR 824 million in Q1 (stronger than typical due to timing), repurchased $361 million in shares, settled a $1.5 billion exchangeable note with cash, and ended the quarter with EUR 8.8 billion cash and equivalents and no debt other than leases.
AI/Product Engagement Traction
AI-driven features showing rapid adoption: DJ/IDJ used by ~94 million subscribers (approaching 100M) and Song DNA reached ~52 million users within 4 weeks; leadership cites increased shipment velocity and productivity from higher compute per employee.
Ad Product Rebuild Progress
Ad stack rebuild is producing early benefits: biddable (programmatic) advertising now represents >1/3 of ad revenue and the automated sales channel comprises >30% of Ad-Supported revenue, positioning the company to capture a larger TAM over time.
Strategic Content Partnerships and Product Extensions
Launched a fitness hub (including a Peloton premium-content partnership) and continued expansion of audiobooks/top-ups as monetization tools, supporting long-term ARPU expansion avenues (management expects ARPU +7% to +7.5% YoY in Q2).
SPOT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SPOT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 28, 2026 | $495.82 | $434.20 | -12.43% |
Feb 10, 2026 | $414.84 | $476.02 | +14.75% |
Jul 29, 2025 | $700.98 | $620.01 | -11.55% |
Apr 29, 2025 | $597.73 | $576.94 | -3.48% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Spotify (SPOT) report earnings?
Spotify (SPOT) is schdueled to report earning on Jul 29, 2026, Before Open (Confirmed).
What is Spotify (SPOT) earnings time?
Spotify (SPOT) earnings time is at Jul 29, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SPOT EPS forecast?
SPOT EPS forecast for the fiscal quarter 2026 (Q2) is 3.24.
