Spotify Shares Rally 14% Premarket on Strong Q1 Guidance and User Growth

Spotify Technology shares surged over 14% in premarket trading on Tuesday, February 10, 2026, following the streaming giant’s fourth-quarter earnings report that exceeded analyst expectations. The Swedish audio-streaming platform forecast first-quarter operating income above Wall Street estimates, demonstrating continued momentum despite recent price increases across multiple markets.

The strong performance marks the first earnings report since co-CEOs Gustav Soderstrom and Alex Norstrom assumed leadership from founder Daniel Ek, who transitioned to executive chairman in January.

Spotify’s Q1 Forecast Signals Pricing Power and Continued User Growth

Spotify delivered impressive fourth-quarter results, with earnings per share of €4.43 far surpassing analyst estimates of €2.85. Revenue reached €4.53 billion, slightly above the consensus estimate of €4.52 billion and representing 7% year-over-year growth (13% on a constant currency basis).

The company’s monthly active users (MAUs) hit 751 million, exceeding expectations of 745.24 million and adding a record 38 million users in the quarter alone, well above its own guidance of 32 million.

The streaming platform’s profitability metrics showed significant improvement, with operating income jumping 47% year-over-year to €701 million, representing a 15.5% margin. Gross margin expanded to 33.1%, up 83 basis points from the previous year, driven by a 10% decline in operating expenses.

Premium subscribers grew 10% to 290 million, with 9 million net additions during the quarter. Free cash flow reached €834 million for the quarter, bringing the full-year 2025 total to €2.9 billion, demonstrating the company’s strengthening financial position.

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SPOT Stock Jumps Premarket as Investors Reprice Spotify’s Profit Outlook

For the first quarter of 2026, Spotify forecast operating income of €660 million, exceeding analyst estimates of €652.3 million, though its revenue guidance of €4.5 billion came in slightly below the €4.57 billion consensus.

The company expects monthly active users to reach 759 million, above analyst projections of 752.45 million, while forecasting 293 million premium subscribers with 3 million net additions, slightly below estimates.

Spotify’s growth strategy includes continued price optimization, having raised its monthly premium subscription by $1 to $12.99 in the U.S., Estonia, and Latvia markets in early 2026, following similar increases in over 150 markets in 2025.

The company has invested heavily in product innovation, rolling out AI-powered playlist generation, expanding video podcasts through partnerships including Netflix, and diversifying beyond audiobooks into physical books to compete with Apple and Amazon’s streaming services. The company noted it paid over $11 billion to the music industry in 2025, marking the largest annual payment to music creators in history.

Stock Performance and Market Context

As of premarket trading at 6:29 AM EST on February 10, 2026, Spotify shares were trading at $473.00, up $58.33 or 14.07% from the previous close of $414.84. The stock had closed down 1.84% in the prior session at $422.61.

Despite the premarket surge, Spotify’s stock has faced significant pressure year-to-date, down 28.56% compared to the S&P 500’s 1.74% gain, and remains down 33.41% over the past year versus the broader market’s 15.58% advance.

The company’s market capitalization stands at approximately $85.4 billion, with a trailing P/E ratio of 52.38 and forward P/E of 30.58. Analyst price targets for the stock range from a low of $507.86 to a high of $912.97, with an average target of $732.55, suggesting significant upside potential from current levels.

The stock’s 52-week range spans from $405.00 to $785.00, indicating substantial volatility as investors weigh the company’s growth prospects against concerns about slowing revenue growth, which hit its lowest rate since the 2018 market listing.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.