Shopify (NASDAQ:SHOP) Releases Earnings Results, Beats Estimates By $0.02 EPS

Shopify (NASDAQ:SHOP) (TSE:SHOP) posted its quarterly earnings results on Wednesday. The software maker reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.02, FiscalAI reports. The firm had revenue of $3.58 billion for the quarter. Shopify had a return on equity of 12.07% and a net margin of 10.77%.The firm’s quarterly revenue was up 33.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.69 earnings per share.

Shopify Price Performance

Shares of NASDAQ SHOP traded up $3.20 during trading hours on Thursday, hitting $147.44. 16,679,841 shares of the stock were exchanged, compared to its average volume of 10,873,450. Shopify has a one year low of $94.00 and a one year high of $182.19. The company’s 50 day moving average is $117.98 and its 200 day moving average is $119.65. The firm has a market capitalization of $191.33 billion, a P/E ratio of 145.98, a P/E/G ratio of 2.66 and a beta of 2.58.

Analyst Ratings Changes

Several equities analysts have weighed in on SHOP shares. Evercore reaffirmed an “outperform” rating and set a $175.00 target price (up from $135.00) on shares of Shopify in a research note on Wednesday. Jefferies Financial Group restated a “buy” rating and set a $175.00 price target on shares of Shopify in a report on Wednesday. Rothschild & Co Redburn set a $130.00 price objective on shares of Shopify and gave the company a “neutral” rating in a research report on Tuesday, July 21st. DA Davidson set a $200.00 price objective on Shopify and gave the stock a “buy” rating in a report on Thursday. Finally, Oppenheimer reissued an “outperform” rating and set a $175.00 price objective on shares of Shopify in a research report on Wednesday, May 6th. Three analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $169.72.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in shares of Shopify by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker’s stock worth $8,158,643,000 after purchasing an additional 743,803 shares during the period. Norges Bank bought a new stake in Shopify during the 4th quarter valued at approximately $2,611,797,000. Invesco Ltd. grew its holdings in Shopify by 9.8% in the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock valued at $2,257,796,000 after buying an additional 1,252,074 shares during the last quarter. Geode Capital Management LLC grew its holdings in Shopify by 6.2% in the 4th quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock valued at $2,043,365,000 after buying an additional 737,892 shares during the last quarter. Finally, Mackenzie Financial Corp increased its position in Shopify by 9.1% in the 4th quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker’s stock worth $1,627,352,000 after buying an additional 827,643 shares during the period. Institutional investors and hedge funds own 69.27% of the company’s stock.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q2 results exceeded expectations. Shopify reported $3.58 billion in revenue, up 33.7% year over year, and adjusted EPS of $0.42 versus the approximately $0.40 consensus. Growth was broad-based, with gross merchandise volume (GMV), gross profit and free cash flow all rising more than 30%; free-cash-flow margin reached 18%. Shopify Delivers Big: 30%+ Growth Across GMV, Revenue, Gross Profit, and Free Cash Flow
• Positive Sentiment: Outlook was stronger than expected. Shopify forecast third-quarter revenue of roughly $3.7 billion to $3.8 billion, ahead of the approximately $3.6 billion analyst estimate, implying low-30% growth. The guidance supports the view that momentum can continue despite elevated AI-related competition. Shopify expects Q3 revenue growth in the low 30s
• Positive Sentiment: AI is currently expanding Shopify’s opportunity. Traffic and orders referred by AI platforms such as ChatGPT and Gemini reportedly tripled year over year. Shopify is integrating agentic commerce and AI tools across payments, merchant services and customer acquisition, suggesting AI may be a partner rather than a threat. Shopify executive discusses AI and entrepreneurship
• Positive Sentiment: Analysts raised targets after the report. Goldman Sachs raised its target to $194, Citi to $196, JPMorgan to $185, Citizens JMP to $185, Wedbush to $176, Benchmark to $170 and BMO to $165. Most maintained bullish ratings, reinforcing the post-earnings rally. Shopify analysts increase forecasts
• Neutral Sentiment: Investor and analyst caution remains. Cantor Fitzgerald raised its target only to $145 and kept a neutral rating. Shopify’s high valuation—approximately 144 times earnings—leaves the stock sensitive to any slowdown in growth or profitability.
• Negative Sentiment: Cathie Wood’s fund trimmed Shopify holdings. The reduction, alongside trims to Amazon and Alphabet, may be viewed as modestly negative sentiment from a closely watched technology investor, although the trade does not change Shopify’s operating outlook. Cathie Wood invests in two technology stocks

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.