Spotify Technology S.A. saw its shares advance 2.8% to $458.09 in after-hours trading Friday, marking a partial rebound from Thursday's significant 8.5% decline. The stock fluctuated between $444.81 and $461.92 during the extended session.
Strong Quarterly Metrics
The audio streaming giant reported fourth-quarter monthly active users reached 751 million, with premium subscribers totaling 290 million. Revenue for the period came in at €4.531 billion, while operating income reached €701 million.
For the first quarter, Spotify anticipates approximately 759 million monthly active users and revenue of €4.5 billion. The company projected operating income of €660 million, exceeding Wall Street expectations, citing recent subscription price increases and continued user expansion.
Leadership Transition and AI Focus
These results represent the first quarterly report under new co-CEOs Gustav Söderström and Alex Norström, who assumed leadership after founder Daniel Ek transitioned to executive chairman. Söderström noted that over 98 million paid subscribers have engaged with Spotify's AI-powered Interactive DJ feature, while addressing concerns about AI-generated content quality.
In corporate communications, Norström characterized 2026 as "the Year of Raising Ambition," signaling heightened strategic goals under the new leadership structure.
Market Context and Risks
Investors continue to monitor key performance indicators including premium subscriber net additions and average revenue per user. Advertising-supported growth remains another focal point, particularly whether it can enhance pricing power beyond merely increasing user counts.
The company acknowledged that operating margins could face pressure if advertising demand weakens or if subscription price increases lead to higher-than-anticipated customer churn. U.S. markets will be closed Monday for the Washington's Birthday holiday, with normal trading liquidity resuming Tuesday.
