- Citigroup maintains a Buy rating for Spotify despite a recent stock decline, highlighting a positive analyst outlook.
- Spotify’s stock experienced a significant drop following soft Q2 guidance, which overshadowed an otherwise strong Q1 earnings report.
- Despite the weak outlook, Spotify reported solid Q1 financial performance with strong revenue growth, adjusted EPS, and record free cash flow, though premium subscriber and operating income projections for Q2 fell short of expectations.
On April 28, 2026, Citigroup maintains its Buy rating for Spotify (NYSE: SPOT). Spotify is a leading global audio-streaming service for music and podcasts. At the time of the rating, the stock price is $429.20, which reflects a recent, sharp stock price decline in its value despite the positive analyst outlook.
Shares of Spotify drop by as much as 14% after the company releases its latest earnings report. This significant market reaction and selloff is triggered by soft Q2 guidance for the second quarter, as highlighted by CNBC. This negative forecast overshadows an otherwise strong financial performance in the company’s first-quarter report for 2026.
The company’s guidance for the upcoming quarter creates concern among investors. Spotify projects it will grow its premium subscribers to 299 million, a figure that is below Wall Street’s expectation of 300.4 million. It also projects an operating income of €630 million, falling short of the forecasted €684 million.
Despite the weak outlook, Spotify’s first-quarter financial results are solid. The company reports revenue of €4.53 billion and an adjusted earnings per share (EPS) of €3.45, beating estimates. EPS is a key metric that shows how much profit a company makes for each share of its stock.
Other metrics also show financial strength. Monthly active users increase by 12% year-over-year to 761 million. The company also reports a quarterly record for free cash flow, which climbs 54% to €824 million. Free cash flow is the cash a company has left after paying for its operations and investments.
