Spotify shares rose sharply on Thursday, 22 October 2026, after the music streaming company reported stronger-than-expected subscriber growth and a record gross margin for the third quarter. Hypebot reported the stock at $574.63 by midday, up 9.38%, after it had been down about 6% for the year before the report.
The results
| Measure (Q3 2026) | Result |
|---|---|
| Revenue | About €4.97bn, up 16% (14% at constant currency); roughly in line with forecasts |
| Monthly active users | 788 million, up 11% |
| Premium subscribers | 306 million, up 9%; 6 million added, 1 million above guidance |
| Gross margin | 33.0%, a third-quarter record |
| Operating income | €672 million |
| Ad-supported revenue | €482 million, up 9–10% |
| Premium revenue | €4.487bn, up 17% |
| Earnings per share | 2.48 vs 2.84 expected (a miss) |
Sources: TheWrap, Hypebot and Investing.com.
Advertising picks up
Advertising revenue growth accelerated to about 9–10%, from 3% in each of the first two quarters, a relief for investors who had worried about Spotify's ad business. Co-chief executive Alex Norström said the company's commitments "landed either in line or better than expected," according to Investing.com.
Expanding beyond music
- Audiobooks will expand from 22 markets to more than 180 by the end of the year.
- Creator Memberships have launched in 34 markets.
- Spotify signed a new multi-year deal with podcaster Joe Rogan.
Outlook
| Q4 2026 guidance | Figure |
|---|---|
| Revenue | €5.2bn |
| Operating income | €820m |
| Monthly active users | 818 million |
| Subscribers | 316 million |
| Gross margin | 33.8% |
Management said growth in operating expenses peaked in the third quarter and will moderate in 2027. Spotify has bought back about $1.1 billion of shares so far this year.
This article is for information only and is not investment advice.
