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2w ago

Shopify Beats on Revenue, Raises Outlook and Authorizes $2 Billion Buyback as Shares Whipsaw on AI Spend

Investor concerns over near-term margins tied to Shopify’s AI commerce build-out keep the stock volatile.

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Overview

  • Fourth-quarter revenue reached $3.67 billion, topping estimates, while adjusted EPS came in at $0.48, missing consensus.
  • Gross merchandise volume rose to $123.8 billion in the holiday quarter, with transaction-driven Merchant Solutions outpacing Subscription Solutions growth.
  • Shopify guided first-quarter 2026 revenue to grow at a low‑thirties percentage rate, ahead of roughly 25% expected by analysts, and projected gross profit growth in the high‑twenties.
  • The board approved up to $2 billion in share repurchases to be executed via pre-arranged algorithmic trades with no set minimums, supported by roughly $2 billion in 2025 free cash flow.
  • Shares jumped early then fell on the Nasdaq and TSX as investors weighed increased AI investment, even as analysts issued upgrades and the company advanced agentic commerce efforts including a Google-partnered Universal Commerce Protocol.