We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Spotify Set to Report Q3 Earnings: Here's What Investors Should Know
Read MoreHide Full Article
Key Takeaways
{\"0\":\"Spotify will report third-quarter 2025 results on Nov. 4 before market open.\",\"1\":\"Subscriber growth, price hikes and audiobook expansion are expected to fuel revenues.\",\"2\":\"Consensus sees $1.87 EPS, suggesting 17.6% y/y growth, and $4.9B in revenues, up 12.3%.\"}
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%.
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%.
Image: Bigstock
Spotify Set to Report Q3 Earnings: Here's What Investors Should Know
Key Takeaways
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-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.