Spotify Technology's Earnings Outlook

Spotify Technology (NYSE:SPOT) is preparing to release its quarterly earnings on Tuesday, 2025-11-04. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Spotify Technology to report an earnings per share (EPS) of $1.87.

Investors in Spotify Technology are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS missed by $2.67, leading to a 4.91% increase in the share price on the subsequent day.

Here's a look at Spotify Technology's past performance and the resulting price change:

Spotify Technology Share Price Analysis

Shares of Spotify Technology were trading at $655.32 as of October 31. Over the last 52-week period, shares are up 71.27%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Spotify Technology

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Spotify Technology.

Spotify Technology has received a total of 9 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $786.0, the consensus suggests a potential 19.94% upside.

Peer Ratings Overview

The analysis below examines the analyst ratings and average 1-year price targets of Walt Disney, Warner Bros. Discovery and Live Nation Entertainment, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Walt Disney, with an average 1-year price target of $131.4, suggesting a potential 79.95% downside.
• Analysts currently favor an Neutral trajectory for Warner Bros. Discovery, with an average 1-year price target of $18.94, suggesting a potential 97.11% downside.
• Analysts currently favor an Buy trajectory for Live Nation Entertainment, with an average 1-year price target of $182.9, suggesting a potential 72.09% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Walt Disney, Warner Bros. Discovery and Live Nation Entertainment are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Spotify Technology ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is also at the bottom for Return on Equity. Overall, the company's performance is below average compared to its peers in the analysis.

Delving into Spotify Technology's Background

Spotify is the leading global music streaming service provider, with nearly 700 million monthly active users and over 250 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from the subscribers, who pay a monthly fee to access a music library that consists of most of the most popular songs ever recorded, including all from the major record labels. The firm also sells separate audiobook subscriptions and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog but cannot customize a similar on-demand experience.

Key Indicators: Spotify Technology's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Spotify Technology's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 10.14%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Spotify Technology's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -2.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Spotify Technology's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.34%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.66%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Spotify Technology's debt-to-equity ratio is below the industry average at 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Spotify Technology visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.