Spotify continued to grow its global audience in the third quarter, while improving profitability. The streaming platform reported higher revenue, stronger margins, and growth across its paid and free services.
What We Know: Spotify reported its third-quarter 2026 financial results on October 22nd, highlighting continued growth across its music, podcast, and audiobook businesses. Premium subscriptions increased alongside monthly active users, while gross margin and operating income exceeded expectations. The company also pointed to its expanding entertainment offerings as a driver of engagement and future growth.
What The Numbers Show:
| Metric | Third-Quarter Result |
|---|---|
| Premium Subscribers | 306 million (+9%) |
| Monthly Active Users | 788 million (+11%) |
| Total Revenue | $5.8 billion (+16%) |
| Gross Margin | 33.0% (+136 basis points) |
| Operating Income | $779 million |
Revenue and operating income converted from euros to U.S. dollars using an approximate €1 = $1.16 exchange rate. Year-over-year growth reflects reported figures.
What They Said: “This was a quarter where we did what we said. We’ve built a strong business that keeps compounding, we invest when we see a path for growth, our costs are moderating, and there is more runway ahead…Spotify not only enjoys industry-leading engagement, but we also have the most passionate and engaged music, podcast and book fans in the world on our platform. That’s why we continue to grow and take share. Every time we expand what’s on Spotify, we bring in new listeners and give existing ones more reasons to come back, almost every day.” -Spotify Co-CEO Alex Norström
“Spotify is in one of the few categories that actually stands to thrive in the agentic age. This is because agents excel at replacing and taking care of things people would rather not do. People love getting rid of chores. But entertainment is the opposite. Nobody asks an agent to ‘summarize a song’ for them. The whole point of getting rid of those chores is to free up even more time for the things that you actually enjoy.” -Spotify Co-CEO Gustav Söderström
What It Means: Spotify’s latest results reinforce its position as a major player in digital entertainment. Subscriber growth and improving margins give the company a stronger financial foundation as it expands beyond music. Meanwhile, its executives see artificial intelligence as an opportunity to enhance discovery and personalization rather than replace the entertainment experiences listeners value.
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