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Spotify Rallies After Q4 Beat With Analysts Staying Positive as JPMorgan Trims Target

Improving margins with faster user growth eased investor concerns over AI-driven disruption.

Overview

  • Q4 2025 topped guidance with 751 million monthly active users, 290 million premium subscribers, and €4.5 billion in revenue.
  • Profitability advanced as gross profit reached €1.50 billion with a 33.1% gross margin and operating profit rose 47% to €0.70 billion.
  • Q1 2026 guidance calls for 759 million MAUs and 293 million premium users with revenue flat at €4.5 billion, plus projected operating income of €660 million and gross margin of 32.8%.
  • Bernstein reaffirmed Outperform at $650 and Benchmark kept Buy at $760, while JPMorgan lowered its target to $700 but maintained an Overweight rating.
  • Shares jumped about 15% following the report as management framed AI as a driver of industry aggregation and recent U.S. price increases are expected to help offset higher royalty costs.