Spotify expects profit above estimates as founder Daniel Ek moves to new role

SelfRugger · 2026-02-11T20:47:32+00:00

Spotify predicts higher-than-expected profits as new co-CEOs take charge. Despite slow revenue growth and a slight dip in premium subscriber estimates, the company’s AI innovations and cost cuts contributed to improved operating income.

SelfRugger

2026-02-11 20:47:32

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Spotify expects profit above estimates as founder Daniel Ek moves to new role

Spotify’s logo at the headquarters on Regeringsgatan in Stockholm · Reuters

Reuters

Tue, February 10, 2026 at 8:02 PM GMT+9 2 min read

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Feb 10 (Reuters) - Spotify forecast first-quarter earnings above Wall Street estimates on Tuesday, as the Swedish audio-streaming giant attracts new users even after price hikes.

The results are the first since co-CEOs Gustav Soderstrom ‌and Alex Norstrom took the reins from founder Daniel Ek, who became executive chairman in January.

While ‌price increases in several markets and cost cuts powered profits in the December quarter, the company’s revenue growth hit the slowest since its 2018 market listing.

Spotify has rolled out an AI-powered playlist that can be generated with a simple prompt, invested ⁠in video podcasts including ‌through a Netflix deal and expanded beyond audiobooks with physical books to ward off competition from Apple and Amazon’s streaming services.

The ‍company forecast operating income of 660 million euros ($786.13 million) in the first quarter, compared with analysts’ average estimate of 652.3 million euros, according to data compiled by LSEG.

Its quarterly revenue forecast of 4.5 billion euros was slightly below the estimate of ‌4.57 billion euros. Fourth-quarter revenue rose 7% to 4.53 billion euros, in line with estimates.

Spotify raised the price of its monthly premium subscription plan by $1 to $12.99 in the U.S., Estonia and Latvia markets this year, following a similar move in more than 150 markets in 2025.

Its quarterly outlook for 759 million ⁠monthly active users was above an estimate of 753 million, while its prediction for a 3 million increase in premium subscribers to 293 million was below estimates.

Premium subscribers grew 10% to 290 million in the fourth quarter, ‍versus an estimate of ⁠290.9 million. Its MAU net additions of 38 million brought the total to 751 million and exceeded expectations.

Gross profit jumped 10% from a ⁠year earlier, thanks to a 10% decline in operating expenses. Gross profit margin increased to 33.1% ‌from 31.6% in the prior quarter.

($1 = 0.8396 euros)

(Reporting by Jaspreet ‌Singh in Bengaluru; Editing by Pooja Desai)

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