Shopify Q2 Earnings Preview: What To Expect From Upcoming Report
- SHOP
- META
This article first appeared on GuruFocus.
Shopify (NASDAQ:SHOP) is scheduled to release its second-quarter 2026 results before Wednesday’s market open, with investors weighing recent analyst optimism against concerns over rising costs and competition.
Shopify faces a competitive question as Meta Platforms expands AI-powered shopping tools. Wall Street expects second-quarter revenue of $3.44 billion and adjusted earnings of 40 cents per share.
Shopify generated $3.17 billion in first-quarter revenue, an increase of 34.3% from a year earlier. Gross merchandise volume exceeded $100 billion for the first time in a quarter, while management projected second-quarter revenue growth in the high-20% range.
The outlook also pointed to pressure from higher AI infrastructure expenses and a larger contribution from lower-margin merchant services. Shopify expects free cash flow margins to remain in the mid-teens.
Analyst sentiment has improved ahead of the report. Morgan Stanley began coverage with an Overweight rating and a $192 price target, while Jefferies upgraded Shopify to Buy and Stifel lifted its target. The company also added DoorDash as a native sales channel for eligible U.S. merchants.
