Shopify raises outlook and launches $2bn share buyback
Shopify announced quarterly revenue guidance that is well above expectations, supported by resilient US consumer spending. The company also unveiled a share repurchase program of up to $2bn.
For the January-March quarter, Shopify forecast revenue growth of just over 30%, versus analysts' expectation of a 25.2% increase, according to LSEG. In the quarter ended December, revenue rose 31% to $3.67bn, beating expectations of $3.59bn. Gross profit reached $1.69bn, up over 25% y-o-y, also announcing the launch of a $2bn share buyback program.
The performance comes as US consumer spending remains robust, despite tariffs and higher living costs. Household outlays, particularly among wealthier consumers, have stayed firm, supporting holiday-quarter sales. Shopify benefits directly from that momentum, with most of its revenue coming from merchant sales commissions, through payment fees and subscriptions to its platform.
Gross merchandise volume reached $123.84bn during the holiday quarter, compared with $94.46bn a year earlier. The company is also continuing to integrate artificial intelligence tools to help merchants analyze their data and build their online stores. Management said the strategy is helping attract both individual entrepreneurs and major retailers, strengthening Shopify's position heading into 2026.
Shopify Inc. (Shopify) is a Canada-based global commerce company. The Company provides essential Internet infrastructure for commerce, offering tools to start, grow, market and manage a retail business of any size. It provides platforms and services that are engineered and delivers a shopping experience for consumers online, in store and everywhere in between. Its software enables merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Company's Shopify platform provides merchants with a single view of their business across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify's platform operates across 175 countries.
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