SPS Commerce (NASDAQ:SPSC) Shares Gap Up After Strong Earnings

SPS Commerce, Inc. (NASDAQ:SPSC)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $56.12, but opened at $59.60. SPS Commerce shares last traded at $57.4880, with a volume of 83,866 shares trading hands.

The software maker reported $1.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.97 by $0.13. SPS Commerce had a net margin of 11.92% and a return on equity of 12.44%. The firm had revenue of $192.12 million during the quarter, compared to analyst estimates of $192.51 million. During the same quarter in the prior year, the firm posted $1.00 EPS. SPS Commerce’s revenue was up 5.8% compared to the same quarter last year. SPS Commerce has set its FY 2026 guidance at 4.730-4.760 EPS and its Q2 2026 guidance at 1.060-1.090 EPS.

Key SPS Commerce News

Here are the key news stories impacting SPS Commerce this week:

• Positive Sentiment: Company Q1 results showed revenue and recurring revenue growth (~6% and ~7% yoy) and an adjusted EPS beat (reported $1.10 vs. consensus ~$0.97); management emphasized subscription strength. SPS Commerce Reports First Quarter 2026 Financial Results
• Positive Sentiment: Company raised EPS guidance: FY2026 EPS guide of $4.73–4.76 and Q2 EPS guide of $1.060–1.090 both sit above consensus, supporting forward earnings expectations. Earnings Release / Guidance Details
• Neutral Sentiment: Needham trimmed its price target to $75 (from $110) but kept a Buy rating, highlighting continued upside vs. the current price—this is supportive but reflects tempered expectations. Needham Lowers Price Target to $75
• Neutral Sentiment: Analyst coverage remains mixed: William Blair reiterated a Hold, and several write-ups (earnings transcript and presentation) provide detail for investors to parse adjusted vs. GAAP results. Q1 2026 Earnings Call Transcript
• Negative Sentiment: DA Davidson cut its price target to $55 and moved to Neutral, signaling near-term downside risk and adding selling pressure for more cautious investors. DA Davidson Lowers PT to $55
• Negative Sentiment: Some third-party reports flagged weaker GAAP operating profit and a below-expectations revenue/EPS reconciliation (Quiver noted a GAAP EPS shortfall and declines in operating profit), plus recent insider selling—items that could weigh on sentiment. Quiver: Stock Reaction & GAAP Metrics
• Negative Sentiment: Revenue guidance ranges were slightly below some revenue consensus points (Q2 and FY revenue bands came in marginally under certain street estimates), which could cap upside despite stronger EPS guides. MarketBeat: Guidance and Results Summary

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Robert W. Baird set a $86.00 target price on SPS Commerce in a report on Friday, February 13th. Craig Hallum lowered SPS Commerce from a “buy” rating to a “hold” rating and set a $70.00 price target for the company. in a research note on Friday, February 13th. DA Davidson dropped their price objective on SPS Commerce from $65.00 to $55.00 and set a “neutral” rating on the stock in a research note on Friday. Rothschild & Co Redburn set a $60.00 price objective on SPS Commerce and gave the company a “neutral” rating in a report on Thursday, April 16th. Finally, Wall Street Zen raised SPS Commerce from a “hold” rating to a “buy” rating in a research note on Sunday, April 26th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $77.18.

Insider Buying and Selling

In other news, Director Marty M. Reaume sold 1,000 shares of the business’s stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $57.90, for a total transaction of $57,900.00. Following the sale, the director directly owned 9,158 shares of the company’s stock, valued at $530,248.20. The trade was a 9.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Chadwick Collins sold 13,384 shares of the company’s stock in a transaction on Friday, February 20th. The shares were sold at an average price of $58.66, for a total value of $785,105.44. Following the sale, the chief executive officer directly owned 72,241 shares of the company’s stock, valued at approximately $4,237,657.06. This represents a 15.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 24,102 shares of company stock worth $1,425,328 over the last quarter. 0.98% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SPS Commerce

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in SPS Commerce by 5.3% during the third quarter. Vanguard Group Inc. now owns 4,944,449 shares of the software maker’s stock valued at $514,915,000 after buying an additional 249,351 shares in the last quarter. State Street Corp boosted its holdings in shares of SPS Commerce by 0.6% in the fourth quarter. State Street Corp now owns 1,468,312 shares of the software maker’s stock worth $130,871,000 after buying an additional 8,163 shares during the period. UBS Group AG increased its position in shares of SPS Commerce by 182.3% in the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker’s stock worth $115,447,000 after acquiring an additional 836,407 shares in the last quarter. Conestoga Capital Advisors LLC raised its holdings in shares of SPS Commerce by 2.5% during the third quarter. Conestoga Capital Advisors LLC now owns 1,281,511 shares of the software maker’s stock valued at $133,457,000 after acquiring an additional 30,769 shares during the period. Finally, Disciplined Growth Investors Inc. MN raised its holdings in shares of SPS Commerce by 86.4% during the third quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after acquiring an additional 367,346 shares during the period. Hedge funds and other institutional investors own 98.96% of the company’s stock.

SPS Commerce Trading Up 5.0%

The firm has a market cap of $2.18 billion, a PE ratio of 24.55 and a beta of 0.58. The company’s 50-day moving average is $57.17 and its 200 day moving average is $76.99.

SPS Commerce Company Profile

SPS Commerce, Inc is a leading provider of cloud-based supply chain management solutions that enable seamless collaboration between retailers, suppliers and logistics providers. Through its robust network, SPS Commerce connects trading partners with electronic data interchange (EDI) capabilities, helping businesses automate order processing, inventory management and fulfillment workflows. The company’s platform ensures data accuracy, accelerates order-to-cash cycles and reduces manual intervention, supporting a wide range of industries including retail, grocery, consumer goods and automotive.

The company offers a suite of services encompassing EDI, retail-ready compliance, order management and data analytics.