Spotify ended the third quarter of 2026 with 306 million paying subscribers. The company added 6 million Premium accounts between July and September, about one million more than its own forecast, according to results published on Thursday, October 22.
Total monthly active users across both the paid and free tiers reached 788 million, up 11% year over year and in line with guidance. The ad-supported audience alone grew 12% to 499 million. Spotify said subscriber gains came from Latin America, Europe, North America and the rest of the world, and credited global promotional campaigns and its partnerships.
The numbers behind the quarter
- Revenue rose 16% to €4.969 billion (14% at constant currency), just short of the company’s €5 billion guidance.
- Premium revenue climbed 17% to €4.487 billion, helped by price increases. Average revenue per subscriber rose to €4.95.
- Advertising revenue grew 10% to €482 million.
- Gross margin reached 33.0%, which Spotify called a record for a third quarter.
- Operating income was €672 million, up 15% from a year earlier and slightly above guidance.
Looking ahead, Spotify expects about 10 million net new subscribers in the fourth quarter, for a total of 316 million, plus 818 million monthly users and €820 million in operating income. Music Business Worldwide calculates that if Spotify meets that target, its full-year 2026 operating profit would be about €2.86 billion (roughly $3.3 billion). That would be the best result in the company’s history and its third straight profitable year.
Co-CEO Alex Norström described it as a quarter in which Spotify did what it said it would, noting that costs are moderating while growth continues. Co-CEO Gustav Söderström argued that entertainment is one of the few categories that should benefit from AI agents, because people want to hand off chores, not the things they enjoy.
The quarter also brought several product launches: Taste Profile, which lets U.S. Premium users shape their recommendations; managed accounts for children on Free and Premium plans; and a plan to expand audiobooks from 22 to more than 180 markets by the end of the year.
Image: Spotify (Q3 2026 earnings header graphic) / Spotify For the Record, via https://newsroom.spotify.com/2026-10-22/spotify-q3-2026-earnings/.
Source: Music Business Worldwide