Is Spotify Technology SA a Buy After Its Latest Earnings Report?

Spotify reported Q3 2026 earnings with revenue of €5 billion (16% YoY growth) and 306 million premium subscribers (9% growth), but net income fell to €580 million from €1 billion year-over-year, missing analyst estimates. However, the stock surged nearly 4% as investors focused on strong operational metrics including record 33% gross margin, €823 million in free cash flow, and robust Q4 guidance. The analyst views Spotify as a buy despite a forward P/E of 52, citing its dominant market position and growth opportunities in audiobooks and AI-powered features.