Spotify Issues Strong Fourth-Quarter Revenue Guidance, Bets on AI for Future Growth

11:00 AM EDT, 10/22/2026 (MT Newswires) -- Spotify Technology (SPOT) projected strong fourth-quarter revenue, while the company said it is counting on its artificial intelligence investments to sustain its growth momentum, sending its shares higher in Thursday trade. For the December quarter, the audio-streaming platform is looking at revenue of 5.2 billion euros ($5.82 billion), representing an acceleration annually and sequentially. Analysts in a FactSet poll expect 5.23 billion euros, which would indicate about a 15% jump from 4.53 billion euros a year earlier. Spotify's revenue for the September quarter surged 16% to 4.97 billion euros, compared with the consensus of 4.98 billion euros. Earnings per share fell to 2.48 euros from 3.28 euros a year earlier, while analysts expected 2.80 euros. "We have another solid quarter behind us," Chief Financial Officer Christian Luiga said during an earnings call, according to a FactSet transcript. "We added 6 million net subscribers during the quarter, growing quarter-over-quarter, across all regions. We reached 306 million, which was 1 million ahead of our guidance." The company's AI investments are also paying off, company officials said. "On AI, our investments have accelerated future shipping while keeping head count flat, setting the business up for further engagement and monetization potential," Luiga said. Spotify's New York Stock Exchange-listed shares were up 7.2% intraday. The stock is down about 2% this year. "Spotify is now an agent that you can not only click on in our app, but talk to, ask questions of, and instruct," Co-Chief Executive Gustav Soderstrom told analysts. "We are betting on consumers using many agents and that Spotify will be by far the best media platform for licensed content inside and across all these agents." On Tuesday, Spotify said it has signed a licensing deal with digital music company Believe for its upcoming tool that lets users make AI remixes and covers of songs while paying the artists behind them. Monthly active users increased 11% in the third quarter to 788 million, while Wall Street expected 788.2 million. Premium subscribers increased 9% to 306 million, though analysts projected growth to 305.1 million. In a recent note, Morgan Stanley said Spotify's shares should move higher, driven by factors such as its path to a reacceleration in revenue growth and margin expansion. The brokerage expects features including audiobooks, video podcasts, and generative artificial intelligence mixing tools to highlight product innovation and support long-term margin expansion at the audio-streaming platform, as user engagement deepens. Price: 572.87, Change: +47.53, Percent Change: +9.05