Spotify Technology's (SPOT  ) subscriber and MAU (monthly active users) growth was "positive in every region" throughout the third quarter.

Most analysts responded by raising their price targets:

  • Guggenheim Securities analyst Michael Morris reiterated a Buy rating, while raising the price target from $575 to $650.
  • Rosenblatt Securities analyst Barton Crockett maintained a Neutral rating, while lifting the price target from $527 to $576.
  • Cantor Fitzgerald analyst Deepak Mathivanan reaffirmed a Neutral rating, while raising the price target from $490 to $550.
  • Citizens analyst Matthew Condon reaffirmed a Market Outperform rating and price target of $625.
Guggenheim Securities: Spotify's fourth-quarter guide implies 10 million premium and 30 million MAU net adds, Morris said. The company's fourth-quarter outlook was broadly in-line with consensus across users, revenue and profit.

"Audiobooks expansion to 180+ markets and Spotify Partner Program rollout to 50+ markets broaden the non-music revenue base, which management described as margin accretive over the long-term," the analyst wrote. He raised the 2027 revenue estimate from $22.1 billion to $22.2 billion, reflecting modestly higher gross profit and operating income.

Rosenblatt Securities: Spotify Technology reported strong third-quarter results, as was expected, Crockett said. The company reported 16.3% year-on-year revenue growth, or 14.4% in constant currency terms. It guided to 15% growth in the fourth quarter.

Management projected premium subscriber growth of 10 million, which takes the 2026 net adds to 26 million, "meaning for 8 years Spotify has added between 25M and 31M subs in the year," the analyst stated. "Spotify makes a very credible argument - consistent with our view - to not be threatened by deal-hunting, sub-canceling personal agents," he further wrote.

Cantor Fitzgerald: Spotify Technology reported revenue and operating income in-line with Street expectations, Mathivanan said. Premium gross margin exceeded estimates, but premium subscribers were 1 million higher than consensus, he added.

"On the product front, innovation remains robust, and SPOT highlighted encouraging adoption of recent AI-powered features and Audiobooks," the analyst wrote. While the third-quarter results were strong, the stock has "several product catalysts ahead," he further stated.

Citizens: Spotify's premium subscriber growth accelerated in the third quarter. Premium revenue growth was 15% year-on-year in constant currency terms, Condon said. Advertising revenue growth also accelerated to 9% year-on-year in constant currency terms. That's up from 3% in each of the first two quarters, he added.

New product launches through 2026 are driving higher engagement and creating new monetization opportunities via "higher free-to-paid conversion, pricing increases, and premium subscription add-ons," the analyst wrote. Backed by these product catalysts, the company is positioned for accelerating revenue growth and meaningful operating margin expansion in 2027, he further stated.

SPOT Price Action: Shares of Spotify Technology had declined by 0.40% to $581.34 at the time of publication on Thursday.