Spotify founder Daniel Ek to step down as CEO in 2026

STOCKHOLM - Spotify Technology S.A. (NYSE:SPOT), which has delivered an impressive 62.8% return year-to-date and maintains a market capitalization of $149.9 billion, announced Tuesday that founder Daniel Ek will transition from Chief Executive Officer to Executive Chairman effective January 1, 2026, with current co-Presidents Gustav Söderström and Alex Norström being appointed as co-CEOs.

The leadership change formalizes an operational structure that has been in place since 2023, according to the company’s press release statement. Both incoming co-CEOs have been with Spotify for more than 15 years and currently serve as Chief Product and Technology Officer and Chief Business Officer, respectively.

In his new role as Executive Chairman, Ek will focus on capital allocation and long-term strategy while providing guidance to senior leadership. The co-CEOs will report directly to Ek and join Spotify’s Board of Directors, subject to shareholder approval.

"Over the last few years, I’ve turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav," Ek said. "This change simply matches titles to how we already operate."

Woody Marshall, Lead Independent Director of Spotify’s Board, expressed confidence in the new leadership structure, noting that the board has been working with Ek on this transition for several years.

Spotify, which launched in 2008, currently reports 696 million users, including 276 million subscribers across 184 markets. The streaming platform offers access to over 100 million tracks, nearly 7 million podcast titles, and 350,000 audiobooks. According to InvestingPro data, the company generates $19.57 billion in revenue and maintains strong financial health with a GREAT overall score, though it currently trades at a premium valuation with a P/E ratio of 161.

The company plans to host a live question and answer session regarding the transition on Tuesday at 8:30am EST. For deeper insights into Spotify’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis including 17+ additional ProTips and detailed valuation metrics in the Pro Research Report.

In other recent news, Spotify is set to release its Q3 2025 earnings report, with analysts closely watching for updates on its financial performance. Goldman Sachs has downgraded Spotify from Buy to Neutral, while slightly increasing its price target to $770, citing a balanced risk/reward scenario. HSBC, on the other hand, has raised its price target to $814, maintaining a Buy rating due to Spotify’s recent product enhancements and pricing strategy. BNP Paribas Exane initiated coverage with an Outperform rating and a $900 price target, highlighting Spotify’s strong market position and competitive edge. Guggenheim reiterated its Buy rating with an $850 price target, showing confidence in Spotify’s growth prospects and product development initiatives. Additionally, Spotify plans to introduce a messaging feature for both free and premium users, aiming to enhance user interaction and compete more effectively in the streaming market. This feature will allow users to chat and share music with their contacts, potentially increasing user engagement.

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