Spotify shares climbed roughly 9.2% following its third-quarter 2026 earnings release, as subscription and advertising growth lifted revenue to $5.57 billion (€4.97 billion).
The stock traded at $574 at the source text’s reporting time, remaining below its levels at the start of 2026 and in late October 2025. It had risen about 6.8% to approximately $561 in pre-market trading.
Subscriptions and advertising lift revenue
Total revenue increased 16% year over year and 4% from the previous quarter. Spotify reported growth across both revenue categories:
- Paid subscribers reached 306 million, up 9% year over year, generating Premium revenue of $5.03 billion (€4.49 billion), up 17%.
- Advertising revenue increased 10% year over year to $540 million (€482 million).
Executives described the advertising results as the beginning of a recovery following an overhaul of the business.
“In quarter four, we expect to continue our progress towards double-digit growth,” CFO Christian Luiga said during the earnings call.
Operating income rose 15% year over year to $753 million (€672 million), despite a 26% increase in operating expenses. The debt-free company employed 7,284 full-time staff at quarter-end.
Audience growth and fourth-quarter forecasts
Monthly active users (MAUs) increased 11% year over year to 788 million. Rest of World accounted for 38% of users and Latin America for 21%, giving the two regions a combined 59% share.
Both regions increased their share of paid subscribers during the quarter. The subscriber distribution was:
- Europe: 36%.
- North America: 25%.
- Latin America: 24%.
- Rest of World: 15%.
For the fourth quarter of 2026, Spotify forecast:
- 818 million monthly active users, including 316 million paid subscribers.
- Revenue of $5.8 billion (€5.2 billion).
- Operating income of $919 million (€820 million).
Remix partnerships and playlist usage
Executives outlined ambitions for an agentic media platform and plans to pursue growth in India. They provided no firm details on the status or launch timing of Spotify’s artificial intelligence (AI) remix and cover tool.
Co-CEO Alex Norström identified Believe and TuneCore as partners for remixes and covers.
“And we added Believe and TuneCore as a partner for remixes and covers,” co-CEO Alex Norström said. “Remixes are as old as music itself. And we’re working on a version that fans love and rightsholders trust – with consent, credit, and compensation at the core.”
While editorial playlist listenership declined, expanded playlist mixing features gained users. Co-CEO Gustav Söderström said nearly 40 million Premium users listen to mixed playlists, with consumption growing 90% quarter over quarter.
