Shopify (NASDAQ:SHOP) Posts Quarterly Earnings Results, Beats Expectations By $998.78 EPS

Shopify (NASDAQ:SHOP) (TSE:SHOP) issued its quarterly earnings results on Tuesday. The software maker reported $999.00 EPS for the quarter, topping the consensus estimate of $0.22 by $998.78, reports. Shopify had a return on equity of 12.03% and a net margin of 10.77%.The firm had revenue of $3.17 billion during the quarter, compared to analysts’ expectations of $3.08 billion.

Shopify Stock Performance

Shares of Shopify stock traded up $3.97 during trading hours on Thursday, hitting $109.41. The company’s stock had a trading volume of 14,994,413 shares, compared to its average volume of 11,108,972. The firm has a fifty day moving average of $121.87 and a 200-day moving average of $141.28. Shopify has a twelve month low of $88.14 and a twelve month high of $182.19. The stock has a market cap of $142.68 billion, a price-to-earnings ratio of 108.33, a P/E/G ratio of 3.83 and a beta of 2.64.

Wall Street Analyst Weigh In

SHOP has been the subject of several research reports. Benchmark dropped their price target on Shopify from $195.00 to $145.00 and set a “buy” rating for the company in a research report on Tuesday, February 10th. TD Securities upgraded Shopify from a “hold” rating to a “buy” rating and set a $159.00 price target for the company in a research report on Thursday, February 12th. Oppenheimer reissued an “outperform” rating and set a $175.00 price objective on shares of Shopify in a research note on Wednesday. Weiss Ratings reissued a “hold (c)” rating on shares of Shopify in a research note on Friday, March 27th. Finally, Moffett Nathanson raised Shopify from a “neutral” rating to a “buy” rating and set a $150.00 price objective on the stock in a research note on Monday, February 9th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, Shopify presently has a consensus rating of “Moderate Buy” and a consensus target price of $158.42.

Hedge Funds Weigh In On Shopify

Hedge funds have recently bought and sold shares of the company. JPL Wealth Management LLC acquired a new position in Shopify during the 3rd quarter worth about $32,000. Strive Financial Group LLC purchased a new stake in Shopify during the 4th quarter worth about $40,000. Swiss RE Ltd. purchased a new stake in Shopify during the 4th quarter worth about $45,000. Osterweis Capital Management Inc. purchased a new stake in Shopify during the 2nd quarter worth about $53,000. Finally, Colonial Trust Co SC increased its holdings in Shopify by 31.5% during the 4th quarter. Colonial Trust Co SC now owns 447 shares of the software maker’s stock worth $72,000 after purchasing an additional 107 shares during the period. Institutional investors and hedge funds own 69.27% of the company’s stock.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Q1 results beat expectations: revenue rose ~34% and merchants processed over $100B in GMV, highlighting broad-based growth and healthy free‑cash‑flow margins — a core reason investors are buying the pullback. E-Commerce Update – Shopify’s Impressive Growth Fueled By Strategic Investments
• Positive Sentiment: Institutional support remains: RBC reaffirmed an Outperform and Needham/others kept bullish ratings (some with high upside targets), which helps underpin the rebound despite recent weakness. Shopify (NASDAQ:SHOP) Receives Outperform Rating from Royal Bank Of Canada
• Positive Sentiment: Elevated options activity: large, front‑loaded call buying indicates short‑term bullish positioning from traders, supporting intraday upside.
• Neutral Sentiment: AI tailwinds are emerging (Sidekick and AI traffic gains) and are credited for accelerating merchant flows, but management flagged higher AI-related costs — the net profit/cost tradeoff remains to be proven. AI reshapes merchant tools as Shopify posts mixed results
• Neutral Sentiment: Some analysts set new, divergent price targets (e.g., Citigroup issued $156), reflecting mixed views on growth sustainability — this produces polarized upside/ downside scenarios rather than a consensus directional signal. Shopify (NASDAQ:SHOP) Given New $156.00 Price Target at Citigroup
• Negative Sentiment: Guidance disappointed: management signaled a slower growth pace ahead and a mixed Q2 outlook, which triggered the earlier steep selloff and keeps near‑term sentiment negative. Shopify Stock Tumbles On Q2 Revenue, Operating Income Outlook
• Negative Sentiment: Multiple price‑target cuts (Canaccord, BMO, Wells Fargo, DA Davidson, others) trimmed near‑term analyst optimism and weighed on sentiment despite the beat — analysts are repricing expectations for growth and margins. Shopify (NASDAQ:SHOP) Price Target Lowered to $145.00 at Canaccord Genuity Group
• Negative Sentiment: Market positioning and valuation: after a sizeable YTD selloff, SHOP remains elevated on P/E and beta — investors wary of stretched valuation may keep trimming positions until guidance clarity returns. As Shopify Sinks 14% Following Earnings, Here’s What Barchart Data Says Comes Next for SHOP Stock

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.