UBS expects Spotify to grow revenue and subscribers despite rising costs, maintaining a buy rating with a $675 target.

UBS remains positive on Spotify's financial outlook, forecasting 14.7% revenue growth in Q3 2026 to €4.97 billion and a 15.2% increase in premium revenue. The bank anticipates 5 million new premium subscribers supported by new features like AI tools and improved playlists. Despite an 18% rise in operating expenses due to investments in AI and marketing, UBS expects operating income to slightly exceed Spotify's guidance at €674 million. For Q4, revenue is projected to grow 13.6% with 10 million premium net additions. UBS maintains its 2026 forecast of €19.5 billion revenue and expects continued growth in 2027, cutting its price target slightly but keeping a buy rating based on Spotify's strong growth potential and improving margins.

Spotify shares are trading at USD 481.81 on Pluang as of Oct 06, 2026 00:51 WIB, showing a 1.89% gain in the last day. The stock's market capitalization stands at $104.93 billion, reflecting its significant presence in the media sector. Trading volume reached 1,891,417, indicating active investor interest during this period.