Shopify Inc. (SHOP) provides commerce software and services that businesses use to establish and operate online and physical storefronts. Merchants use its platform across websites, mobile devices, retail locations, social media, and online marketplaces.
As of December 31, 2025, Shopify served millions of merchants in more than 175 countries. Its platform also supported a third-party developer ecosystem, with more than 21,000 apps available in the Shopify App Store.
Shopify reported two revenue categories: Subscription Solutions, which accounted for approximately 24% of 2025 revenue, and Merchant Solutions, which accounted for approximately 76%. Headquartered in Ottawa, Canada.
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| Share Price | $173.4 | 10/20/2026 | Sector | Technology | |
| Market Cap | $220B | Large Cap | Industry | Software | |
| P/E Ratio | 117.2 | Op Margin | 17.55% | Dividend | 0 |
| Year | 2023 | 2024 | 2025 | Historical | Volatility |
| Annual EPS | $0.10 | $1.56 | $0.94 | Beta | 2.62 |
| Revenue | $7.06B | $8.88B | $11.56B | Category | Aggressive |
Historical Volatility categories (Conservative, Moderate, and Aggressive) are based on beta, which measures a stock’s historical price volatility relative to the overall market. Company metrics are current as of the publication date. Historical Revenue and Annual EPS reflect reported fiscal-year results. All information is provided for educational purposes only and should not be considered investment advice or recommendations.
Keys for Success
Shopify continues to add merchants while expanding the ways they sell and get paid. In 2Q2026, revenue rose 34% to $3.58 billion as Gross Merchandise Value (GMV) increased 32% to $115.6 billion. Merchant Solutions revenue grew 37% to $2.78 billion, while Shopify Payments processed $78 billion in GMV, and penetration reached 68%, up 4 percentage points from last year.
Shopify is using its commerce data and infrastructure to improve discovery, conversion, and merchant productivity. In 2Q2026, AI-driven traffic and orders to Shopify stores each tripled year over year, while new-buyer orders occurred at nearly twice the rate of other channels. Catalog now structures more than 1 billion products, and AI searches powered by Catalog convert at twice the rate of those using scraped data.
Shopify’s growth outside North America remains a key driver as the platform adds local payments and market tools. In 2Q2026, international GMV grew 37% year over year, while Europe GMV increased 34% on a constant-currency basis. The company launched Shopify Payments in the UAE, bringing coverage to 40 countries. It also launched its first local payment method in Mexico and expanded Managed Markets to merchants in Canada and the United Kingdom.
Shopify is expanding where merchants can be discovered and transact while keeping product data, checkout and payments connected to its platform. In 2Q2026, the company said dozens of retailers and platforms had adopted the Universal Commerce Protocol, and every Shopify merchant is UCP-ready, with products automatically listed in Catalog. Shop app native GMV grew more than 70% year over year.
In 2Q2026, free cash flow rose to $654 million from $422 million a year earlier, lifting the margin to 18% from 16%. Operating expenses were 34% of revenue, nearly four points lower year over year. Shopify also repurchased $1.42 billion of common stock in 2Q2026.
Keys for Concern
Merchant Solutions revenue and subscription upgrades are sensitive to weaker consumer demand or tighter merchant budgets. Shopify operates alongside larger commerce and logistics platforms, like Amazon, that influence merchant expectations for payments and integrated services.
Shopify’s revenue mix continues to tilt toward Merchant Solutions and payments, where growth can outpace higher-margin subscription revenue. Subscription Solutions gross margin remained just under 80% as Sidekick usage scaled. Transaction and loan losses rose to 3.9% of revenue from 3.7% in 1Q2026, with Capital driving the increase and adding variability to profitability as financial products expand.
Mark Notes
Shopify is a technology stock that provides essential cloud-based tools for modern e-commerce businesses. It maintains strategic partnerships with firms like Alphabet (GOOG) while serving a diverse ecosystem of over 21,000 app developers.
Shopify has been pushing to position its commerce infrastructure at the center of AI-powered shopping. Earlier this week, the company expanded access to its product catalog for more AI agents, letting shoppers discover and buy products through assistants connected to its Shop app. The move builds on its partnership with Meta’s Muse and its Shop Pay checkout technology.
Shopify is scheduled to report its third-quarter results on November 3. The company reported 34% revenue growth in the second quarter, and management forecast low-thirties percentage revenue growth for the third quarter.
This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.
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