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Spotify Set to Report Q3 Earnings: Here's What Investors Should Know

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Key Takeaways

  • Spotify will report third-quarter 2025 results on Nov. 4 before market open.
  • Subscriber growth, price hikes and audiobook expansion are expected to fuel revenues.
  • Consensus sees $1.87 EPS, suggesting 17.6% y/y growth, and $4.9B in revenues, up 12.3%.

Spotify Technology S.A. (SPOT - Free Report) will release third-quarter 2025 results on Nov. 4, before market open.

SEZL has an impressive record of earnings surprises. It surpassed the Zacks Consensus Estimate in the four trailing quarters, with an average surprise of 125.1%.

Spotify Technology Price and EPS Surprise

 

Spotify Technology Price and EPS Surprise

Spotify Technology price-eps-surprise | Spotify Technology Quote

SPOT’s Q3 Expectations

The Zacks Consensus Estimate for the top line is pegged at $4.9 billion, suggesting growth of 12.3% from the year-ago quarter’s actual.

We anticipate the primary growth driver to have been the increasing premium subscribers. The Zacks Consensus Estimate for premium subscribers is pinned at 281.2 million, indicating a 7% year-over-year rise. Having said that, the recent price hike is expected to have further pushed the average revenues per user up a notch.

On the content front, increasing subscriber value on the back of the expansion of audiobooks to new markets and the launch of the Audiobooks+ add-on for premium users are factors that are anticipated to have supported subscriber acquisition.

We are quite confident that the ad-supported segment is likely to have boosted the top line as well on the back of automated sales.

The consensus estimate for earnings per share is $1.87, hinting at year-over-year 17.6% growth.

What Our Model Says About SPOT

Our proven model does not conclusively predict an earnings beat for Spotify Technologythis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Spotify has an Earnings ESP of +12.30% and a Zacks Rank of 4 (Sell) at present.

Stocks to Consider

Here are a few stocks from the broader Computer And Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Affirm (AFRM - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter fiscal 2026 revenues is pegged at $885 million, indicating 26.7% year-over-year growth. For earnings, the consensus estimate is pegged at 11 cents per share, implying a 135.5% upsurge from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 105.5%.

AFRM has an Earnings ESP of +3.53% and a Zacks Rank of 3. The company is scheduled to declare first-quarter fiscal 2026 results on Nov. 6.

Fair Isaac (FICO - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2025 revenues is pegged at $511.8 million, indicating year-over-year growth of 12.8%. For earnings, the consensus estimate is pegged at $7.34 per share, implying a 12.2% increase from the year-ago quarter’s actual. The company beat the consensus estimate in two of the trailing four quarters and missed in the other two, with an average surprise of 2.2%.

FICO has an Earnings ESP of +0.46% and flaunts a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to announce fourth-quarter fiscal 2025 results on Nov. 5.


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