Spotify (SPOT) Shares Plunge 12% on Weak Q2 Guidance Despite Q1 Beat

Key Takeaways First quarter earnings per share of $3.45 exceeded analyst projections by $0.51 Second quarter operating income projection of €630M fell short of the €684M consensus Company’s Q2 premium subscriber outlook of 299M missed the 302M consensus estimate Advertising-supported revenue declined 5% compared to the prior year, though increased 3% in constant currency terms Shares dropped up to 12% during premarket hours after the earnings announcement While Spotify delivered impressive first quarter results that exceeded analyst expectations, market participants quickly shifted their attention to the company’s forward-looking statements — and the outlook sparked a significant selloff. SPOTIFY $SPOT Q1’26 EARNINGS HIGHLIGHTS Revenue: €4.53B (Est. €4.52B) ; +8% YoY EPS: €3.45 (Est. €2.95) MAUs: 761M (Est. 759.23M) ; +12% YoY Q1 Net Adds: 10M (Est. 3M) Gross Margin: 33.0% (Est. 32.8%) Q2 Guide: MAUs: 778M (Est. 773.9M) … pic.twitter.com/CgaW0E7joZ — Wall St Engine (@wallstengine) April 28, 2026 The streaming giant posted first quarter revenue of €4.53 billion, representing an 8% increase from the same period last year and matching Wall Street projections. Earnings per share reached $3.45, surpassing consensus by $0.51. The platform’s monthly active user base climbed to 761 million, exceeding the anticipated 756.6 million. First quarter operating income reached a company record of €715 million, beating the €681.6 million analyst forecast. This milestone was partially attributed to reduced payroll tax expenses, which correlate with Spotify’s stock performance — shares have declined approximately 15% year-to-date. Spotify Technology S.A., SPOT The company’s premium subscriber count increased 9% to reach 293 million in the first quarter, slightly missing the 294.5 million projection, with a net gain of 3 million subscribers throughout the period. Investor concerns emerged when management unveiled second quarter projections. Spotify issued guidance calling for Q2 ope...