Spotify Projects Strong Fourth-Quarter Profit as Artificial Intelligence Bets Pay Off

By EC Assets · Published 22 October 2026

Spotify Technology SA projected fourth-quarter profit above market expectations, driven by strategic bets on artificial intelligence. The music-streaming company announced the outlook alongside its third-quarter financial results, which included revenue and operating figures. The forecast and quarterly results pushed the company's equity higher in premarket trading on Thursday. Shares of Spotify Technology rose about 5.2% in premarket trading on Thursday after the company released its third-quarter performance and quarterly outlook. The premarket advance extended gains recorded earlier in the week. On Tuesday, Spotify Technology shares climbed nearly 3% during morning trading on the New York Stock Exchange. That increase occurred after Jefferies lifted its price target on the stock to $620 from $600 while maintaining a Buy rating ahead of the third-quarter announcement. Jefferies highlighted a favorable set-up for the company heading into the quarterly earnings release. The broker pointed to scope for improving advertising growth alongside moderating cost pressures across the business. Jefferies also identified upside potential from artificial intelligence products and advertising expansion. The artificial intelligence initiatives come alongside operational cost factors. While artificial intelligence bets supported the fourth-quarter profit outlook above market estimates, higher spending on marketing and artificial intelligence features is set to hit profit. Fourth-quarter earnings will show how higher expenditures on marketing and artificial intelligence features balance against the profit gains forecasted from artificial intelligence bets. This article is intended for informational purposes only. It does not constitute investment advice.