Shopify soars on strong revenue beat, robust guidance

Investing.com -- Shopify Inc. (NASDAQ: SHOP) reported second-quarter results that exceeded analyst expectations on both revenue and earnings, sending shares up 26% premarket as the company delivered accelerating growth across key metrics.

The e-commerce platform posted revenue of $3.58 billion for the quarter ended June 30, beating the analyst consensus of $3.45 billion and representing 34% growth YoY from $2.68 billion in the prior year period. Adjusted earnings per share came in at $0.42, surpassing the estimate of $0.40. Gross merchandise volume grew 32% YoY to $115.6 billion, while free cash flow reached $654 million, up from $422 million a year earlier, producing an 18% free cash flow margin.

"This was a monster quarter: more than 30% growth in GMV AND revenue AND gross profit AND free cash flow," said Harley Finkelstein, President of Shopify. "We power every kind of business, and with AI, we're expanding what's possible for all of them."

For the third quarter of 2026, Shopify expects revenue to grow at a low-thirties percentage rate YoY. The company projects gross profit dollars to grow at a mid-to-high twenties percentage rate, with the midpoint of 27.5% slightly below the second quarter's 31% growth. Free cash flow margin is expected to be in the high-teens to low-twenties range.

Merchant solutions revenue climbed 37% YoY to $2.78 billion, while subscription solutions revenue increased 22% to $802 million. Operating income surged 68% to $488 million from $291 million in the year-ago quarter.

"GMV growth accelerated on top of last year's already strong Q2 with solid results across all merchant sizes, channels, and geographies," said Jeff Hoffmeister, Chief Financial Officer. "Alongside this momentum, we continue to drive operating leverage, which flowed through to 18% free cash flow margins."

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