E-commerce platform Shopify beat revenue and earnings estimates last quarter, but shares fell 15.6% after it issued weak guidance.
Earnings per share were US$0.36, up from $0.35 one year ago and above the Zacks consensus estimate of $0.32. Revenue rose 34% to $3.17 billion, surpassing estimates by 2.79%.
“Shopify has entered the AI era with a clear edge: strong, durable growth and two decades of commerce intelligence. That puts us in a category of one, and we’re about to see that advantage compound throughout 2026,” said Shopify president Harley Finkelstein.
Merchant solutions revenue climbed to $2.42 billion from $1.74 billion, its strongest growth in more than four years. Subscription solutions revenue was $750 million, up from $620 million.
Gross merchandise volume was $100.74 billion, increasing from $74.75 billion one year ago. Monthly recurring revenue grew from $182 million to $212 million.
Shopify’s gross profit climbed from $1.17 billion to $1.55 billion. Operating income was $382 million, rising from $203 million.
The platform also processed $67 billion in payments during the quarter, it said, with its gross merchandise volume penetration rising from 64% to 67% year-over-year.
Its outlook for 2026’s second quarter includes revenue growth in the high twenties percentage range, with gross profit rising at a mid-twenties percentage rate.
This is a decrease both from its first quarter guidance and its actual results last quarter. Shopify’s revenue growth has been above 30% for four consecutive quarters.
Shares in Shopify (NASDAQ: SHOP) closed 15.6% lower at $107.62, and remained flat after-hours. Its market capitalisation is $140.34 billion.
