Equities Analysts Set Expectations for SPOT FY2026 Earnings

Spotify Technology (NYSE:SPOT - Free Report) - Analysts at Erste Group Bank increased their FY2026 EPS estimates for Spotify Technology in a note issued to investors on Monday, April 27th. Erste Group Bank analyst S. Lingnau now anticipates that the company will post earnings per share of $14.91 for the year, up from their prior estimate of $14.75. The consensus estimate for Spotify Technology's current full-year earnings is $15.73 per share. Erste Group Bank also issued estimates for Spotify Technology's FY2027 earnings at $18.62 EPS.

A number of other research analysts have also issued reports on the company. Sanford C. Bernstein lowered their target price on Spotify Technology from $830.00 to $650.00 and set an "outperform" rating on the stock in a report on Wednesday, January 14th. Guggenheim lowered their target price on Spotify Technology from $720.00 to $600.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. Cantor Fitzgerald lowered their target price on Spotify Technology from $615.00 to $525.00 and set a "neutral" rating on the stock in a report on Wednesday, February 11th. Barclays lowered their target price on Spotify Technology from $650.00 to $600.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. Finally, Weiss Ratings lowered Spotify Technology from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, February 26th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $692.14.

Spotify Technology Stock Performance

Shares of SPOT opened at $433.78 on Wednesday. The stock's fifty day moving average is $501.23 and its 200-day moving average is $548.45. The firm has a market capitalization of $89.31 billion, a price-to-earnings ratio of 45.00, a price-to-earnings-growth ratio of 1.08 and a beta of 1.70. Spotify Technology has a one year low of $405.00 and a one year high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The company reported $5.16 earnings per share for the quarter, topping analysts' consensus estimates of $3.16 by $2.00. Spotify Technology had a net margin of 13.16% and a return on equity of 31.35%. The business had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same quarter last year, the company earned $1.88 earnings per share. The business's quarterly revenue was up 6.8% compared to the same quarter last year.

Institutional Investors Weigh In On Spotify Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in Spotify Technology by 1.9% in the 4th quarter. State Street Corp now owns 4,712,249 shares of the company's stock worth $2,736,450,000 after purchasing an additional 89,951 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in Spotify Technology by 4.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,869,472 shares of the company's stock worth $2,247,042,000 after buying an additional 149,479 shares during the period. Capital World Investors lifted its holdings in shares of Spotify Technology by 4.9% during the fourth quarter. Capital World Investors now owns 2,863,821 shares of the company's stock worth $1,663,024,000 after buying an additional 133,108 shares during the last quarter. Fisher Asset Management LLC lifted its holdings in shares of Spotify Technology by 2.4% during the fourth quarter. Fisher Asset Management LLC now owns 2,665,512 shares of the company's stock worth $1,547,890,000 after buying an additional 62,887 shares during the last quarter. Finally, Coatue Management LLC lifted its holdings in shares of Spotify Technology by 35.9% during the fourth quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock worth $1,423,251,000 after buying an additional 647,708 shares during the last quarter. 84.09% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Spotify Technology

In other Spotify Technology news, CEO Alex Norstrom sold 5,436 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the completion of the sale, the chief executive officer directly owned 69,989 shares in the company, valued at approximately $33,560,425.39. This trade represents a 7.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Gustav Soderstrom sold 20,833 shares of Spotify Technology stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total value of $9,864,842.16. Following the sale, the chief executive officer owned 20,609 shares of the company's stock, valued at approximately $9,758,773.68. This represents a 50.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.40% of the company's stock.

Key Headlines Impacting Spotify Technology

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Q1 results beat Street estimates — Spotify reported stronger‑than‑expected revenue and EPS (Q1 EPS beat and revenue modestly above consensus), showing continued user and margin progress. Business Wire: Spotify Technology S.A. Releases Results for First Quarter 2026
• Positive Sentiment: Strategic product expansion — Spotify launched a fitness hub and a global partnership with Peloton (1,400+ classes for Premium users), which can drive engagement and new monetization paths beyond music/podcasts. CNBC: Spotify teams up with Peloton to launch global fitness content hub
• Positive Sentiment: Analyst estimate bumps — Erste Group raised its FY2026 and FY2027 EPS forecasts (FY2027 to $18.62; FY2026 to $14.91), signaling some sell‑side confidence in multi‑year earnings power despite short‑term headwinds.
• Neutral Sentiment: AI content friction — Users and third parties are building tools and raising questions about how (or whether) Spotify will label/filter AI‑generated music; product/policy choices here could affect UX and licensing but are not an immediate earnings hit. Digital Trends: Spotify apparently has no solid plan to label AI-generated music
• Negative Sentiment: Soft Q2 operating‑income guidance — Spotify forecast Q2 operating income of €630M vs. analyst estimates near €684M, a clear miss that compresses near‑term margin expectations and triggered heavy selling. Reuters: Spotify forecasts second-quarter profit below estimates, shares fall
• Negative Sentiment: Weaker subscriber/profit outlook — Management guided to smaller-than-expected premium‑subscriber adds and modest operating‑profit growth (e.g., projected net MAU and premium adds fell short of consensus), highlighting growth slowdown risk after recent price increases. CNBC: Spotify stock plummets after earnings beat expectations as guidance disappoints
• Negative Sentiment: Ad weakness, AI costs and regulatory noise — Reports cite advertising softness, higher AI investment and unresolved labeling/licensing issues plus regulatory scrutiny (payola‑style playlist promotion probes), all weighing on sentiment and margin visibility. Billboard: Why Spotify Stock Fell 12% Despite the Company’s Strong Earnings Report Digital Trends: Spotify apparently has no solid plan to label AI-generated music

Spotify Technology Company Profile

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.

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