Spotify Set to Release Q1 Earnings with Strong Growth Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy SPOT?
Source: seekingalpha
Spotify's stock is up 11.37% in pre-market trading, crossing above the 5-day SMA, indicating positive momentum ahead of its earnings report.
The company is set to release its Q1 earnings on February 10, with analysts projecting earnings per share of $2.85, a significant increase from $1.76 in the same quarter last year. Additionally, Spotify's expected quarterly revenue is $4.52 billion, reflecting ongoing growth potential in the music streaming market. This positive outlook is contributing to the stock's rise, despite previous cautious sentiment.
The upcoming earnings report is crucial for Spotify as it seeks to reassure investors about its profitability and growth trajectory. With a bullish stance from analysts, the market is optimistic about Spotify's ability to deliver strong results.
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Analyst Views on SPOT
Wall Street analysts forecast SPOT stock price to rise
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 462.820
Low
525.00
Averages
750.79
High
900.00
Current: 462.820
Low
525.00
Averages
750.79
High
900.00
About SPOT
Spotify Technology SA a Luxembourg-based company, which offers digital music-streaming services. The Company enables users to discover new releases, which includes the latest singles and albums; playlists, which includes ready-made playlists put together by music fans and experts, and over millions of songs so that users can play their favorites, discover new tracks and build a personalized collection. Its users can either select Spotify Free, which includes only shuffle play or Spotify Premium, which encompasses a range of features, such as shuffle play, advertisement free, unlimited skips, listen offline, play any track and audio. The Company operates through a number of subsidiaries, including Spotify LTD and is present in over 20 countries. Its service offers a music listening experience without commercial breaks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Revenue and Profit: Spotify's total revenue reached $20.4 billion, with premium subscribers accounting for 89% of this revenue, while annual net income soared by 94% year-over-year to $2.6 billion, indicating substantial progress in profitability and sustainable growth.
- Leading Technological Innovation: In 2025, Spotify introduced over 50 new features, including the AI-powered Prompted Playlist tool, which enhances user control over content, expected to increase user engagement on the platform, thereby generating more revenue for creators and artists.
- Rapid Growth in Video Podcasts: Spotify's investment in video podcasts has led to the addition of over 530,000 video podcasts, with consumption soaring by 90% since the launch of a new partner program, which not only boosts user engagement but also opens new revenue streams for the company.
See More
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- Spotify Position: Loeb invested $58 million in Spotify in the same quarter, which saw a drop of more than 16%, yet finished the year nearly 30% higher, indicating market confidence in its growth, with analysts suggesting a potential increase of over 42%.
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See More
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- Datadog Financial Performance: Datadog reported nearly 30% year-over-year sales growth in Q4, and despite facing AI competition pressures, management emphasized that AI-driven innovations will help attract more complex customers, suggesting resilience in its business model amid current challenges and potential for higher future charges.
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- Industry Outlook: Despite concerns about AI disruption in the software sector, analysts believe that strong management teams and innovation capabilities will enable Spotify, Datadog, and Ferrari to maintain competitive advantages in the evolving consumer demand and technological landscape.
See More
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- Spotify's Pricing Strategy: Spotify has raised subscription prices twice in the U.S. over the past 18 months, achieving a record gross margin of 33.1% in Q4, exceeding analyst expectations, indicating that users are willing to pay more for quality content, thereby enhancing the company's profitability.
- User Growth and Profitability Shift: Spotify's premium subscribers grew by 10% year-over-year, with free cash flow reaching $3 billion for the entire year, demonstrating a shift from rapid growth to intelligent monetization strategies, improving overall financial health.
- Retail Sales Data Analysis: Retail sales increased by 2.4% year-over-year in 2025, falling short of the 2.7% analyst estimate, highlighting a disparity in consumer spending power, with the top 20% of earners accounting for 60% of personal outlays, while lower-income households face greater economic pressure.
- Unity Earnings Reaction: Unity's latest earnings report showed revenue and adjusted EBITDA below market expectations, leading to a 30% drop in stock price, as the market fears potential disruption from AI, despite the company's strong cash flow position, reflecting uncertainty about the future.
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