Spotify Q1 Subscribers, Revenue Rise; Q2 Guidance Misses, Shares Fall 12%

Spotify shares fell as much as 12% in premarket trading on April 28, 2026, after the company reported its first-quarter earnings for 2026 and issued guidance for the second quarter that fell short of analysts' expectations. The streaming service projected operating income of €630 million ($736 million) for the second quarter of 2026, below analysts’ expectations of €684 million (nearly $800 million), according to Reuters.

Spotify also projected 299 million paid subscribers for Q2 2026, compared to analysts’ expectations of about 302 million, Reuters reported.

Spotify shares are down more than 10% as of 9 a.m. EST in premarket trading on April 28, 2026. For the first quarter of 2026, Spotify reported 293 million paid subscribers, up 1% from the previous quarter and 9% year-over-year.

The company had 761 million monthly active users in Q1 2026, up 12% year-over-year. Spotify reported €4.53 billion ($5.3 billion) in Q1 2026 revenue, up 8% year-over-year, in line with analysts’ estimates, Reuters reported. Spotify’s Q1 2026 operating income was €715 million ($835 million), which beat expectations.

Spotify shares have declined throughout the year, shedding about 15% in value as of Monday’s close price. Spotify underwent numerous changes this year, including a leadership turnover that saw longtime CEO Daniel Ek, who led the company since he co-founded it in 2006, hand over the reins to Norström and Gustav Söderström as co-CEOs.

Ek announced his departure in September and left his post in January, transitioning to an executive chairman role. News of Ek’s departure prompted Spotify shares to fall 4%. The streaming service also announced in January it would hike prices for U.S. subscribers by $1 per month, raising its premium tier from $11.99 per month to $12.99, its first price hike in about 18 months.