UBS analysts say Spotify Technology SA (NYSE:SPOT)’s latest price increase is a sign the company is on track for stronger revenue growth and margin expansion in 2026, and that the move could lift near-term earnings expectations.
Spotify announced last week it is raising the cost of its Premium plan from $11.99 to $12.99 per month in the US, Estonia and Latvia.
Duo and Family plans will each increase by $2, bringing them to $18.99 and $21.99, respectively. Student plans will rise by $1 to $6.99.
Spotify said the adjustments reflect the platform’s value and are intended to support ongoing investment in product improvements, new features, and support for artists.
UBS analysts expect the price increase to lift blended US ARPU by about 10% and total premium ARPU by roughly 3.5%.
The analysts also wrote that the timing of the increase, which takes effect in February for most users, could provide upside to first-quarter estimates for ARPU growth.
UBS reiterated a 'Buy' rating and maintained a $800 price target, reflecting its view that Spotify’s monetization efforts remain on track.
The move comes as Spotify continues to pursue new monetization strategies, including new tiers and AI-driven features. UBS suggested the company could introduce additional monetization efforts over time, and that the price increase is consistent with its broader strategy to improve revenue per user while managing costs.