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Spotify Shares Tank As Earnings Outlook Misses Expectations
Spotify said operating income will reach 630 million euros, below Street estimates, as first-quarter revenue and users topped expectations.
- On Tuesday, Spotify shares fell 14% after the streaming company issued disappointing Q2 2026 guidance, forecasting €630 million in operating income and 299 million premium subscribers, both trailing analyst expectations.
- The Stockholm-based company posted a strong first quarter, with revenue rising 8% to about $5.3 billion and monthly active users climbing 12% year-over-year to 761 million.
- Rising costs impacted performance, as management noted a 17% increase in operating expenses driven by AI and cloud spending, while ad-supported revenue declined 5% year-over-year.
- Wall Street remains constructive on the streaming giant with 35 Buy ratings versus 7 Hold and 0 Sell, despite investors pummeling the stock after the forecast.
- Led by co-CEOs Alex Norström and Gustav Söderström, Spotify warned that its guidance remains "subject to substantial uncertainty" ahead of the May 21 investor day in New York.
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13 Articles
Spotify Stock Falls On Q2 Guidance For Paid Subscribers
Investors pummeled shares of giant music streamer Spotify Tuesday on a softer-than-expected outlook for premium subscribers in the current second quarter — despite solid financials for the three months ended in March. The stock is down over 13% after the company anticipated 299 million total premium subscribers by June, an addition of about six million. […]
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Coverage Details
Total News Sources13
Leaning Left2Leaning Right2Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
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