Spotify Technology (NYSE: SPOT) shares surged more than 11% in premarket trading on Tuesday after the music streaming company reported fourth-quarter earnings that significantly exceeded analyst expectations, supported by strong user growth and improved profitability.

The audio streaming platform posted earnings per share of €4.43 for the fourth quarter, well above the consensus estimate of €2.85. Revenue rose 7% year over year to €4.53 billion, slightly exceeding expectations of €4.52 billion, or 13% growth on a constant-currency basis.

Monthly active users reached 751 million, surpassing analyst projections of 745.24 million and representing an 11% increase from a year earlier. Premium subscribers grew 10% year over year to 290 million, including 9 million net additions during the quarter.

Gross margin improved to 33.1%, up 83 basis points from the prior year, while operating income jumped 47% year over year to €701 million, equating to an operating margin of 15.5%.

For the first quarter of 2026, Spotify forecast revenue of €4.5 billion, slightly below the consensus estimate of €4.57 billion. The company, however, expects monthly active users to rise to 759 million, exceeding analyst expectations of 752.45 million.