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Spotify Q3 misses revenue and EPS estimates despite strong subscriber growth

Company Fundamentals
25 Oct 2026
Seeking Alpha
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Neutral
Spotify Q3 misses revenue and EPS estimates despite strong subscriber growth

Spotify reported third-quarter results below analyst expectations, missing both revenue and adjusted earnings per share despite strong user growth. The company maintains a strong market position with exclusive content but faces competition from bundled offers by Apple and YouTube Music. Management projects Q4 revenue of €5.2 billion, a 33.8% gross margin, and 10% user growth, indicating a positive near-term outlook. However, the long-term growth outlook remains uncertain, leading to a hold rating as current valuations reflect growth potential without significant upside compared to tech peers.

Spotify shares show modest stability on Pluang, trading at USD 584.22 with a slight 0.10% increase in the last day. The stock's market cap stands at $120.11 billion, reflecting steady investor interest as of Oct 25, 2026 13:01 WIB.

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