Shopify Q1 2026 earnings beat overshadowed by slow growth outlook

2 hours ago 4

Colleen Cabili

Tue, May 5, 2026 astatine 8:33 AM CDT 1 min read

Shopify banal tumbled astir 9% soon aft markets opened Tuesday, arsenic investors weighed second-quarter guidance that pointed to decelerating maturation against first-quarter results that topped expectations.

For the 2nd quarter, the institution said it expects gross to turn astatine a "high-twenties percent rate" from a twelvemonth earlier, down from the 34% maturation it posted successful the archetypal quarter. Gross nett dollars are expected to turn astatine a mid-twenties rate, with escaped currency travel borderline successful the mid-teens.

First-quarter results were stronger crossed the board. Within that performance, merchant solutions stood out, with its 39% summation marking the segment's strongest showing successful implicit 4 years, Bloomberg reported. Gross merchandise volume, the full dollar worth of orders processed done the platform, surpassed $100 cardinal for the quarter.

Coming into Tuesday, Shopify shares had already mislaid 21% of their worth since the commencement of the year.

"Q1 delivered broad-based maturation crossed geographies, merchant sizes, and channels, with implicit $100 cardinal of GMV successful the archetypal 4th alone," CFO Jeff Hoffmeister said successful a statement. "The durability of this exemplary allows america to put strategically successful growth, some successful the merchant-facing tools that thrust commerce innovation and successful the interior capabilities that fto america physique and vessel faster."

President Harley Finkelstein pointed to the company's presumption successful AI commerce. "Shopify has entered the AI epoch with a wide edge: strong, durable maturation and 2 decades of commerce intelligence," helium said successful a statement.

Operating expenses successful the 2nd 4th are expected to travel successful astatine 35% to 36% of revenue, with stock-based compensation of $145 million, the institution said.

Shopify, which is headquartered successful Ottawa, powers commerce for millions of businesses successful much than 175 countries.

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