Spotify’s Record-Breaking Year Sends Shares Higher

February 11, 2026

Spotify’s stock climbed sharply on Wednesday after the streaming giant reported record profits and a surge in subscriber growth, marking one of the strongest financial performances in its two-decade history.

A Historic Profit Milestone

The company closed 2025 with more than €2.2 billion in net profits — a 94% increase from the previous year — nearly doubling its prior performance and cementing a dramatic turnaround that began in 2024, when Spotify became profitable for the first time since its 2006 founding.

Operating income and margins also reached new highs, with the platform achieving a 33.1% profit margin, the strongest in its history. The robust results pushed Spotify shares up by as much as 6% at market open before settling back slightly later in the day.

Subscriber Growth Surges

Spotify’s user base expanded significantly in 2025, with monthly active users (MAUs) rising 11% to 751 million — the largest quarterly increase the company has ever recorded. Paying subscribers grew 10%, reflecting strong global demand for premium streaming services.
The momentum continued into early 2026, with the company forecasting 759 million MAUs and approximately €4.5 billion in revenue for the first quarter.

Leadership Transition and Strategic Vision

The earnings report also comes amid a leadership shift. Founder Daniel Ek, who stepped down as CEO last month to become executive chairman, said Spotify has evolved into a platform that extends beyond audio, enabling creators to connect with audiences in new ways.
New CEO Alex Norström described 2026 as “the year of elevating ambition,” signalling continued investment in product innovation and creator tools.

Impact on the Music Industry

Spotify’s growth has had ripple effects across the global music ecosystem. In 2025, the company paid out more than €11 billion to artists — the largest annual payment to music creators by any platform in history. It also helped generate over $1 billion in ticket sales by connecting fans to live events.

AI Innovation and Emerging Challenges

Like many tech companies, Spotify is leaning heavily into artificial intelligence. New features — including a prompt-based playlist generator and a personalised AI DJ — have already been adopted by millions of subscribers.

However, the rise of AI-generated music poses new challenges. Co-CEO Gustav Söderström acknowledged that while the issue is not new, “it has scaled,” and said Spotify is working with artists and labels to introduce clearer production-method disclosures.

Market Reaction and Outlook

Investors responded positively to the strong financials and subscriber gains. Spotify’s stock also surged on Wall Street after beating its own guidance for fourth-quarter subscriber numbers, with MAUs reaching 751 million and premium subscribers rising to 290 million, one million above expectations. Operating income for the quarter hit €701 million, far exceeding forecasts.

As Spotify heads into 2026, the company says it is well-positioned to maintain growth while improving margins, supported by continued reinvestment in long-term innovation.