Spotify Technology’s (SPOT) stock is up 10% after the audio-streaming company reported fourth-quarter 2025 financial results that beat Wall Street forecasts.
The Swedish company, which dominates music streaming, reported earnings of 4.43 euros ($5.28 U.S.) a share, which was far ahead of the €2.74 forecast among analysts.
Revenue of €4.53 billion came in slightly ahead of the €4.52 billion expected on Wall Street. Sales were up 7% from a year earlier.
Spotify also posted a gross profit margin of 33.1%, better than the 32.9% that Wall Street had penciled in for the company.
The streaming giant said that it added nine million premium subscribers over the final quarter of last year, toping analysts’ estimates.
In terms of guidance, Spotify forecast revenue of €4.50 billion and a gross margin of 32.8% for the current first quarter of 2026.
Wall Street had been looking for sales of €4.58 billion and a gross margin of 32.1% in Q1 2026.
Before today (Feb. 10), SPOT stock had declined 35% over the last 12 months to trade at $414.84 U.S. per share.
Spotify’s stock had decreased in the past year as investors and analysts worried about market saturation and that the company’s growth had plateaued.
