Spotify (SPOTN) Q3 2026 Earnings Report
MX:SPOTN Q3 2026 EPS Results
- Actual EPS
- MXN 52.21
- Consensus EPS
- MXN 59.01
- Beat/Miss
- Missed by -MXN 6.80
- One Year Ago EPS
- MXN 69.05
MX:SPOTN Q3 2026 Revenue Results
- Actual Revenue
- MXN 107.40B
- Expected Revenue
- MXN 104.88B
- Beat/Miss
- Beat by +MXN 2.52B
- YoY Revenue Growth
- +14.51%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
MX:SPOTN Upcoming Earnings
Spotify's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:SPOTN Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Spotify reported revenue, subscriber growth, gross margin, operating income, and free cash flow at or above expectations; highlighted improving advertising momentum, expanding audiobook and creator offerings, strong AI adoption, and continued investment returns; and provided constructive fourth-quarter guidance. The main challenges were that advertising growth remains at 9% rather than double digits, MAU growth is below last year's record pace, social charges were above forecast, and 2027 guidance was not yet available.
Company Guidance
For quarter four, Spotify is forecasting MAU of 818 million, an increase of 30 million from quarter three, and 316 million subscribers, or a net addition of 10 million, with healthy growth across all regions; total revenue is forecast at EUR 5.2 billion, reflecting a year-over-year ARPU increase of 4.5% - 5%, advertising is expected to continue progress towards double-digit growth, gross margin is expected to be 33.8%, approximately 70 basis points above prior year, and operating income is guided to EUR 820 million. The quarter four outlook implies full-year gross margin expansion of approximately 130 basis points compared to 2025, includes expansion of audiobooks to more than 180 markets and the Spotify Partner Program to more than 50 markets, and OpEx growth is expected to moderate in Q4 and into 2027; it is too early to give guidance on 2027.
- Revenue and User Growth Met or Exceeded GuidanceThird-quarter total revenue was EUR 5 billion, up 14% year over year at constant currency and in line with guidance. MAU reached 788 million, up 11% year over year and in line with guidance, while subscribers reached 306 million after adding six million net subscribers, exceeding guidance by one million.
- Premium Revenue Growth and ARPU ExpansionPremium revenue increased 15% year over year, driven by 9% subscriber growth and 7.5% ARPU expansion.
- Gross Margin Expanded Above ExpectationsThird-quarter gross margin was 33%, 10 basis points above guidance and approximately 140 basis points higher year over year.
- Strong Operating Income and Free Cash FlowOperating income was EUR 672 million, slightly above guidance, with a 13.5% operating margin. Quarterly free cash flow was EUR 735 million, and free cash flow over the prior 12 months totaled EUR 3.2 billion.
- Advertising Growth RecoveredAd-supported revenue growth improved to 9% at constant currency in the third quarter, compared with 3% in each of the first two quarters. Growth was led by the automated biddable sales channel, while sponsorship products, particularly in podcasts, also grew.
- Operating Expense Growth Began to ModerateManagement said operating expense growth peaked in the third quarter as planned and is moderating from the fourth quarter onward and into 2027.
- Durable Long-Term Subscriber GrowthSpotify said it has added at least 25 million subscribers every year since going public in 2018, when it had 71 million subscribers, and expects to reach 316 million subscribers in 2026. Third-quarter subscriber growth came from every region.
- Global Subscriber Penetration Provides Expansion RunwaySpotify said nearly 50% of Sweden's population pays for Spotify, compared with under 4% globally, 20% to 25% in the U.K. and Germany, approximately 11% in Latin America, and less than 3% across emerging markets.
- Audiobooks Expansion and Engagement BenefitsSpotify plans to expand audiobooks from 22 markets to more than 180 markets by year-end, making it what management described as the world's first global audiobook service. Audiobook listenership has increased 40% over three years, with management also citing growth in listening hours, active days, retention, lifetime value, and early indications that add-ons are working.
- Podcast and Creator Monetization ExpansionSpotify signed a new multi-year agreement with Joe Rogan, whose show remains the world's most popular podcast. The Spotify Partner Program is expanding to 35 additional markets in the fall and to more than 50 markets in the fourth-quarter outlook, while Creator Memberships launched to let fans directly support creators and receive member-only experiences.
- Mixing Tools Adoption AcceleratedNearly 40 million Premium users now listen to mixed playlists. Consumption of Mixing Tools increased 90% quarter over quarter, and millions of users create mixes each month.
- AI and Agentic Media Platform ProgressSpotify said it is now an agentic media service that users can talk to and instruct, including for personalized playlists, music manipulation, track credits, generated podcasts, and book recaps. Spotify has integrated with ChatGPT, Meta Ray-Bans, OpenAI's Dots, and Meta's Muse, and management said it is seeing strong adoption inside these agents.
- Taste Model and AI Features Produced Early GainsEarly deployments of Spotify's large taste model showed double-digit gains in content discovery and increased time spent in selected algorithmic sets. Management said the rollout is on track to add billions of listening hours per year, while tens of millions of people are speaking to Spotify in English.
- AI Investment Improved Product Delivery and EngagementSpotify said AI investments accelerated feature shipping while keeping headcount flat. After roughly two six-month development cycles, management reported significant acceleration in building and shipping end-user features, with increases in engagement, retention, active days, discoveries, saves, and listening hours.
- Agent and Ubiquity Strategy Supports Spotify's Business ModelManagement said listening through third-party agents still occurs through Spotify, with agents remote-controlling the Spotify service rather than receiving Spotify's music directly. Spotify's background monetization model works for both Premium users and free users listening to audio ads, and the company said its integrations are producing good adoption.
- Fourth-Quarter Growth OutlookSpotify forecast fourth-quarter MAU of 818 million, an increase of 30 million from the third quarter, and 316 million subscribers, a net addition of 10 million. It also forecast total revenue of EUR 5.2 billion, fourth-quarter gross margin of 33.8%, approximately 70 basis points above the prior year, and operating income of EUR 820 million.
- Full-Year Margin Expansion ExpectedBased on the first nine months and fourth-quarter outlook, Spotify expects full-year gross margin expansion of approximately 130 basis points compared with 2025.
- Share Repurchases and Strong Balance SheetThrough October 21, Spotify had repurchased 2.2 million shares for $1.1 billion, neutralizing the year's dilution from employee equity programs and beginning the return of excess cash to shareholders. Since resuming buybacks in August 2025, the company has repurchased approximately three million shares, or about 1.5% of shares outstanding. Spotify ended the quarter with $9.9 billion in cash and cash equivalents and no debt other than lease liabilities.
- Capital Allocation FlexibilityManagement reiterated that capital allocation will prioritize organic and inorganic growth initiatives, followed by opportunistic shareholder returns. Prior acquisitions cited included WhoSampled, Findaway, and Sonantic, and management said it will continue pursuing such opportunities when it sees attractive returns.
- Emerging-Market Product OptimizationSpotify is improving sign-up data hygiene, adjusting ad loads, and migrating users from lower-end device clients to a better-retaining client in emerging markets. Management described these changes as positive for the free tier, subscription tier, and revenue, and highlighted India's 1.4 billion users and 7%-8% GDP growth over several years as a significant opportunity.
- Internal Technology Tools Offer Additional Option ValueSpotify has begun selling certain internal software tools to other companies. Management described this primarily as option value and a way to amortize technology costs across more developers after other companies expressed interest in using the technology.
- Positive Music-Industry Partnership ToneRegarding upcoming music-industry agreement renewals, management did not provide specific deal terms but said its relationships with partners are improving and that increasingly aligned interests make it easier to create win-win situations.
MX:SPOTN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 09, 2027 | 2026 (Q4) | 69.13- | 93.26 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 59.0152.21 | 69.05 | -24.39% (-16.84) | |
| Aug 04, 2026 | 2026 (Q2) | 58.1654.94 | -8.84 | 721.43% (+63.79) | |
| Apr 28, 2026 | 2026 (Q1) | 62.5472.63 | 22.52 | 222.43% (+50.10) | |
| Feb 10, 2026 | 2025 (Q4) | 57.6093.26 | 37.05 | 151.70% (+56.21) | |
| Nov 01, 2025 | 2025 (Q3) | 41.1669.05 | 30.52 | 126.21% (+38.52) | |
| Jul 29, 2025 | 2025 (Q2) | 41.11-8.84 | 28 | -131.58% (-36.84) | |
| Apr 29, 2025 | 2025 (Q1) | 46.1422.52 | 20.42 | 10.31% (+2.11) | |
| Feb 04, 2025 | 2024 (Q4) | 41.8337.05 | -7.58 | 588.89% (+44.63) | |
| Nov 12, 2024 | 2024 (Q3) | 35.5330.52 | 6.95 | 339.39% (+23.58) |
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