Spotify & Corning Stocks Drop After Earnings – Target Price Cuts

Shares of Spotify Technology (SPOT) experienced a significant decline on April 28, 2026, as the company provided growth guidance for the second quarter that failed to meet analyst expectations. The stock fell over 13% after the market opened on April 28, 2026, according to CNBC.

The market reaction followed a first-quarter earnings report that otherwise showed growth in both revenue and user acquisition. Spotify reported that first-quarter revenue rose 8% year-on-year to 4.5 billion euros, or approximately $5.3 billion.

First Quarter User Growth

Spotify’s user base continued to expand in the first quarter of 2026. Monthly active users (MAUs) increased 12% year-on-year, reaching 761 million, a figure that slightly exceeded FactSet estimates.

The company also saw growth in its paying user base. Premium subscribers rose 9% to 293 million, representing 3 million net additions for the quarter.

Second Quarter Guidance and Analyst Misses

Despite the first-quarter beat, the stock plummeted due to projections for the current quarter. Spotify expects to add 17 million net users to reach 778 million MAUs in the second quarter.

The primary source of investor disappointment was the forecast for premium subscribers. Spotify expects premium subscribers to grow by 6 million to reach 299 million. However, analysts polled by FactSet had anticipated that net premium subscribers would grow to just over 300.4 million.

Operating income projections also fell short of Wall Street’s expectations. Spotify guided operating income to 630 million euros, whereas FactSet estimates had predicted a figure closer to 680 million euros.

In an earnings presentation, the company noted that this guidance is subject to substantial uncertainty.

Profitability and Pricing Strategy

The guidance miss comes as Spotify continues to adjust its pricing to improve overall profitability. In February 2026, the company increased the monthly subscription price for its premium service in the United States from $11.99 to $12.99.

The stock had already been under pressure leading up to the report. As of the close of markets on Monday, April 27, 2026, Spotify’s stock was down 14% year-to-date.