Shares of Spotify fell sharply after the company issued weaker-than-expected guidance, despite reporting strong quarterly results, as reported by market data.
The stock dropped as much as 12 percent in early trading before trimming losses. First-quarter revenue rose 8 percent year-on-year to 4.5 billion euros, while monthly active users grew 12 percent to 761 million. Both figures exceeded analyst estimates, according to FactSet data.
Spotify stock plummets after earnings beat expectations as guidance disappoints https://t.co/yrV5hexqz6
— CNBC (@CNBC) April 28, 2026
Premium subscribers increased to 293 million, reflecting steady growth. However, the company’s outlook disappointed investors. Spotify expects subscriber additions and operating income for the next quarter to fall short of expectations.
The report said operating income guidance of 630 million euros lagged behind forecasts. Spotify also flagged uncertainty in its projections.
The company has raised subscription prices in key markets to boost profitability. Shares remain down significantly this year, highlighting investor concerns about future growth.
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