Shopify (NASDAQ:SHOP) Beats Expectations in Strong Q2 CY2026, Stock Jumps 25.1%
E-commerce platform Shopify (NASDAQ:SHOP) reported Q2 CY2026 results exceeding the market’s revenue expectations , with sales up 33.7% year on year to $3.58 billion. Its GAAP profit of $1.16 per share was significantly above analysts’ consensus estimates.
Is now the time to buy Shopify? Find out in our full research report.
Shopify (SHOP) Q2 CY2026 <a href="https://bitcomme.com/rocket-crm-highlights-the-growing-role-of-marketing-automation-in-modern-customer-engagement/” title=”Rocket CRM Highlights the Growing Role of Marketing Automation in Modern Customer Engagement”>Highlights:
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Revenue: $3.58 billion vs analyst estimates of $3.46 billion (33.7% year-on-year growth, 3.7% beat)
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EPS (GAAP): $1.16 vs analyst estimates of $0.31 (significant beat)
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The company raised both full-year revenue growth and free cash flow margin guidance
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Operating Margin: 13.6%, up from 10.9% in the same quarter last year
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Free Cash Flow Margin: 18.3%, up from 15% in the previous quarter
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Market Capitalization: $160.4 billion
Company Overview
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Shopify grew its sales at an impressive 28.1% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Shopify’s annualized revenue growth of 30.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
This quarter, Shopify reported wonderful year-on-year revenue growth of 33.7%, and its $3.58 billion of revenue exceeded Wall Street’s estimates by 3.7%.
Looking ahead, sell-side analysts expect revenue to grow 23.4% over the next 12 months, a deceleration versus the last two years. Still, this projection is eye-popping given its scale and suggests the market sees success for its products and services.
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