Story perspectives

Spotify Q1 Profit Beats, Shares Plunge 12% on Forecast Miss

4/28/2026

Summary

Spotify Shares Drop

Spotify reported Q1 2026 profit and revenue, sending its shares down about 12% in pre-market trading on April 28, 2026.
Revenue increased 8% to €4.53 billion while operating income rose 40% to €715 million.
Gross margin hit a record 33.0% as premium subscribers grew 9% to 293 million.
Spotify forecast Q2 operating income of €630 million and premium subscribers of 299 million, both below analysts’ expectations of €684 million and roughly 302 million subscribers.

Summary

Spotify Expands Offerings

Spotify paid over $11 billion in 2025, raising total payouts to nearly $70 billion.
Spotify and Backline launched B-LINE, a 24/7 mental-health hotline for U.S. creators and families.
Spotify added ad tools—Sponsored Playlists, Carousel Ads, Split Testing, Automated Bid—to embed brands in fan experiences.
Bad Bunny’s first Asian concert in Tokyo drew 2,300 fans and streamed worldwide as a Spotify film.

History

Historical Context

Apple launched iTunes Store in April 2003, quickly reaching 200 million songs sold by December 2004 and capturing about 70 % of the legal US download market by 2004. The store’s dominance reshaped music distribution, paving the way for subscription streaming. In 2026 Spotify reported €4.53 billion revenue and a 9 % rise in premium subscribers, echoing iTunes’ impact on artist compensation.

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Spotify Shares Drop

Spotify reported Q1 2026 profit and revenue, sending its shares down about 12% in pre-market trading on April 28, 2026.
Revenue increased 8% to €4.53 billion while operating income rose 40% to €715 million.
Gross margin hit a record 33.0% as premium subscribers grew 9% to 293 million.
Spotify forecast Q2 operating income of €630 million and premium subscribers of 299 million, both below analysts’ expectations of €684 million and roughly 302 million subscribers.

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