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Spotify stock jumps 9% as paid subscribers hit 306 million and record margins ease wall street profit worries. The streaming company added 6 million premium users in the third quarter and forecast further growth in subscribers, revenue and operating income by year-end. Published 10/23/26 AT 1:09 AM AEDT Shares of Spotify Technology S.A. jumped more than 9% on Thursday after the world's largest music streaming service reported stronger-than-expected subscriber growth and record profit margins and forecast continued growth through the end of the year. Spotify shares rose $48.29, or 9.2%, to $573.21 in early trading, giving the Stockholm-based company a market value of about $118 billion. The rally came after the stock had fallen about 22% over the past year. Subscribers top expectations Spotify said it had 306 million premium subscribers at the end of the third quarter, up 9% from a year earlier, after adding 6 million paying users during the quarter. The figure beat expectations, with growth across Latin America, Europe, North America and other regions. Monthly active users rose 11% to 788 million, in line with the company's forecast. Ad-supported users grew 12% to 499 million. Revenue and margins Revenue rose 16% to about 5 billion euros, slightly ahead of analysts' expectations. Premium revenue grew 17%, while advertising revenue rose 10%. Gross margin reached 33%, a record for a third quarter and about 1.4 percentage points higher than a year earlier. Operating income was 672 million euros, an operating margin of 13.5%, slightly above the company's guidance. Earnings per share, however, came in below some analysts' estimates. "Our gross margin came in at 33%, surpassing guidance by 10 basis points," Chief Financial Officer Christian Luiga said on a call with analysts. Luiga also said that growth in operating expenses "is now coming down meaningfully." Executives confident Co-Chief Executive Alex Norström said the company had met the targets it set out the previous quarter. "We made several commitments last quarter, and they've all landed either in line or better than expected," Norström said. Strong outlook For the fourth quarter, Spotify forecast revenue of 5.2 billion euros and operating income of 820 million euros. It expects gross margin to rise to 33.8%. The company also expects to reach 818 million monthly active users and 316 million subscribers by the end of the year, which would mean adding about 10 million paying subscribers in the quarter. The profitability story Spotify spent years focused on growth at the expense of profits, often posting losses as it paid large royalties to record labels and music publishers. In recent years, the company has shifted its focus to profitability, raising subscription prices in many markets, cutting costs and expanding higher-margin businesses such as podcasts, audiobooks and advertising. That shift has helped transform Spotify into a consistently profitable company and has been a key driver of investor interest in the stock. The company has also invested heavily in artificial intelligence features designed to personalize listening and keep users engaged, positioning itself to compete as AI reshapes how people discover music and other audio content. Competition Spotify competes with Apple Music, Amazon Music, YouTube Music and other streaming services. It remains the market leader by number of users, giving it scale that rivals have struggled to match. What's next Investors will watch whether Spotify can deliver on its fourth-quarter forecast, particularly its goal of adding 10 million subscribers during the holiday season. They will also look for continued improvement in margins and for signs that its investments in AI and new content formats are paying off. The company's ability to raise prices without losing subscribers will also be closely watched, as it remains a key driver of revenue growth. MEET IBT NEWS FROM BELOW CHANNELS

Spotify Q3 2026 financial results reveal double-digit revenue and subscriber growth. Spotify is closing in on the milestone of 800 million active users this side of Christmas, based on its just-published Q3 2026 financial results. The streaming service ended September with 788 million monthly active users, having added 11 million during the third quarter of this year. The total was up 11% year-on-year. 306 million of those users are premium subscribers, meaning six million net new subscribers added during Q3, and a rise of 9% year-on-year. Ad-supported listeners grew by 12% year-on-year to 499 million. As for revenues, those were up 16% year-on-year for Spotify to €4.97bn in Q3, including a 17% spike in premium revenues to €4.49bn as part of that. But in a welcome trend for Spotify's advertising business, that saw growth of 10% too. The important thing for Spotify (and investors) is that everything was in line with its predictions for the quarter, with its premium subscribers coming in 1m over its guidance. Its operating profit of €672m in Q3 also beat its guidance by €2m. Spotify also noted in its financials that its average revenue per user (ARPU) is up 9.3% year-on-year to €4.95. Seemingly its price increases are bearing fruit, without having a negative impact on its user growth. 61% of Spotify's premium subscribers still come from Europe (36%) and North America (25%), with 24% from Latin America and 15% from the rest of the world. Keep an eye on these figures next quarter: Latin America overtaking North America (for subscriber numbers, if not revenues) would be a notable moment for Spotify. In terms of user, 38% of Spotify listeners come from the rest of the world, up from 36% a year ago, and 26% in Q3 2022. Over that time, the percentage of listeners in Europe has fallen from 31% to 25%, and in North America from 22% to 16% - although Spotify's overall growth means the actual numbers have increased in both territories. As for that upcoming 800 million users milestone, Spotify is uber-confident that it will be passed this year. In fact, the company is predicting that it will end 2026 with 818 million monthly active users - thus adding 30 million in the pre-Christmas quarter. It has also predicted that it will have 316 million premium subscribers by the end of the year. Music Ally Ltd.'ll find out what Spotify's leadership has to say about all this - and how Wall Street reacts - later today, and will bring you any talking points in tomorrow's bulletin.

Audi drivers can now stream Spotify without connecting their phone. Audi has become the first automaker to launch Spotify's fully native in-car app. Available in selected models, the integration brings music, podcasts, lyrics, and other Spotify features directly to Audi's infotainment system without requiring smartphone connectivity for playback. Published on: 21 Oct 2026, 12:15 pm Updated on: 21 Oct 2026, 12:15 pm Audi has become the first automaker to offer Spotify's fully native app directly through a car's infotainment system. The new integration lets drivers access music and other Spotify features without connecting their smartphones, giving the streaming service a more direct role in the in-car entertainment experience. Announced on Wednesday (October 21, 2026), the app runs on Android Automotive OS and is available through the Audi Application Store in selected newer Audi models. The launch also changes how streaming services can work with a vehicle's built-in software. Spotify comes directly to Audi's infotainment system. Until now, many drivers have accessed Spotify in their cars through Apple CarPlay, Android Auto, or existing in-car app integrations. Audi's new offering runs directly on the vehicle's infotainment system, so users do not need to tether their phones to play music. The app features Spotify's familiar interface and access to music, podcasts, and supported interactive features. Users can sign in by scanning a QR code displayed on the car's screen or by entering a pairing code. Once signed in, they can resume listening and control playback through the car's built-in system. The app is available to both Spotify Free and Premium users, but it requires a compatible vehicle and, in some cases, an Audi connect package. Music videos, live lyrics & Spotify Jam. The new app offers more than music playback. It includes real-time lyrics, music videos, Spotify DJ and Spotify Jam, which lets passengers join a shared listening session and add tracks to a common queue. On compatible Audi models, the experience changes depending on whether the car is moving or parked. While driving, the central display restricts certain features, including video and lyrics, to reduce driver distraction. When the vehicle is parked, users can access these features on the main infotainment screen. Vehicles with a dedicated front passenger display can also let passengers browse content, follow lyrics, and watch videos while the car is moving. Which Audi models support the new app? The native Spotify app is rolling out initially to support model-year 2026 vehicles built on Audi's Premium Platform Electric (PPE) and Premium Platform Combustion (PPC) architectures. Compatible models include the Audi A6 e-tron, Q6 e-tron, A5, Q5 and A6. Audi says the app will also reach the Q7 and Q9 when those models launch in their respective markets. The service is planned for 47 markets worldwide, although availability may vary by vehicle, equipment and region. Audi & Spotify look beyond smartphone connections. For Audi, the launch expands its effort to bring digital services directly into its vehicles. For Spotify, it creates a more integrated listening experience and greater control over how its app looks and works on a car's screens. The companies have not announced that the new app will replace CarPlay or Android Auto. Instead, it offers another way to access Spotify, with features designed specifically for the driving environment. As automakers add more software-based services, built-in streaming apps could become an increasingly important part of the connected-car experience.