Spotify Technology S.A.'s stock surged 17.26% during pre-market trading on Tuesday, following the release of its fourth-quarter 2025 financial results that significantly exceeded Wall Street expectations.
The audio-streaming giant reported quarterly earnings of 4.43 euros per share, dramatically surpassing the FactSet consensus estimate of 2.74 euros. Revenue also beat forecasts, rising 7% year-over-year to 4.53 billion euros. The company added a record 38 million monthly active users, bringing its total to 751 million, while premium subscribers grew 10% to 290 million.
Investors were further encouraged by Spotify's first-quarter 2026 outlook, which forecast operating income of 660 million euros, above analysts' average estimate. The strong performance was attributed to successful price increases in multiple markets, cost-cutting measures, and robust engagement from features like the annual "Wrapped" campaign.
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