Spotify Technology (SPOT) is expected to report Q2 results "largely in line" with management's guidance, supported by accelerating foreign exchange neutral revenue growth, higher pricing and stable gross margins, UBS Securities said in a note Thursday.

The investment firm forecast Q2 revenue of 4.8 billion euros ($5.5 billion), up 15.6% on an FX-neutral basis despite slower net premium subscriber additions.

Advertising revenue growth is also expected to improve, gross margins are seen expanding to 33.1%, and operating income is projected at 634 million euros despite higher artificial intelligence, marketing and content spending, according to the note.

Analysts said they are "largely maintaining" their 2026 outlook on Spotify, including 19.4 billion euros in revenue, 33.3% gross margins, and 3.4 billion euros in free cash flow, with premium net adds anticipated to strengthen in H2.

UBS Securities maintained a buy rating, but lowered the price target to $690 from $735.

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