Spotify Technology (NYSE:SPOT) delivered a blockbuster fourth-quarter performance on Tuesday, February 10, 2026, silencing critics of its margin profile with a record net income of $1.37 billion.
The Luxembourg-based streaming giant reported earnings of $5.16 per share, nearly 63% higher than the $3.16 consensus estimate, as the company effectively transitioned from a growth-at-all-costs model to a high-efficiency profit machine.
The quarter’s outperformance was fueled by a record surge in Monthly Active Users (MAUs), which climbed 11% year-over-year to 751 million.
Management credited the "flywheel effect" of its 2025 Wrapped campaign—the personalized year-end listening summary—for driving tens of millions of new sign-ups in December.
Premium subscribers, the company's primary revenue engine, grew 10% to 290 million, even as Spotify implemented its third price hike in the U.S. and key European markets earlier in the year.
Beyond the viral marketing success, Spotify’s "Year of Accelerated Execution" saw gross margins hit a record 33.1%.
The expansion was driven by a more profitable advertising mix and the successful rollout of AI-powered personalization tools, including the "AI DJ" and "Prompted Playlists," which have significantly increased user retention.