Spotify hit 300 million premium subscribers in the second quarter of 2026, but this milestone did not please investors after the company’s latest earnings report.
Spotify’s shares dropped 6.2% before trading started on Tuesday, while the overall market futures moved up a bit.
Over the past year, Spotify gained 7 million premium subscribers in the quarter, reaching 300 million for the first time. The number of monthly active users grew 12% from last year to 777 million.
Even with strong user numbers, Spotify’s financial results fell short. The company earned 2.61 euros per share, less than the 2.76 euros analysts expected, according to a FactSet poll. Revenue grew 14% from last year to €4.78 billion, just under the €4.79 billion estimate.
Higher costs affected Spotify’s results. Operating expenses rose 3% from last year to €941 million, as the company spent more on marketing, cloud services, and AI infrastructure.
Spotify’s outlook for the current quarter was also below expectations. The company predicted operating income of €670 million on €5 billion in revenue, while Wall Street expected €678 million in operating income and €4.93 billion in revenue.
