Revenue Growth Accelerates
Revenue rose 33.7% to $3.583 billion, driven by strong merchant growth and higher GMV, though specific drivers were not disclosed in provided data.
Source: 10-Q Income Statement (XBRL)
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Shopify's Q2 FY2026 was defined by robust revenue growth and a surge in bottom-line earnings, though the latter was amplified by non-operating items. Revenue climbed 33.7% year-over-year while operating income more than doubled, underscoring strong underlying business momentum. However, net income of $1.5 billion far surpassed operating income of $488 million, indicating a substantial boost from gains likely tied to investments or asset sales. The company also spent $1.42 billion on share repurchases, reducing its cash position but improving per-share metrics.
Revenue
$3.58B
+33.69% YoY
EPS (Diluted)
$1.16
+68.12% YoY
Gross Margin
47.7%
-0.9 pts YoY
Operating Income
$488M
+67.70% YoY
Source: SEC XBRL
Shopify (SHOP) reported Q2 FY2026 revenue of $3.58B, up 33.7% year over year. Operating margin was 13.6%, up 2.7 points from 10.9% a year earlier. Operating cash flow was $658M, up 53.7% year over year. SHOP's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 0.36 | 0.34 | Beat +6.8% |
| Dec 2025 | 0.48 | 0.52 | Miss -7.1% |
| Sep 2025 | 0.34 | 0.34 | Miss -0.7% |
| Jun 2025 | 0.35 | 0.29 | Beat +19.1% |
Compiled by AI from this SEC filing
Revenue rose 33.7% to $3.583 billion, driven by strong merchant growth and higher GMV, though specific drivers were not disclosed in provided data.
Source: 10-Q Income Statement (XBRL)
Operating income increased 67.7% to $488 million, as operating expenses grew more slowly than revenue, highlighting improving efficiency.
Source: 10-Q Income Statement (XBRL)
Net income reached $1.502 billion, far exceeding operating income, primarily due to a $1.014 billion net benefit from non-operating items, likely including investment gains.
Source: 10-Q Income Statement (XBRL) and 10-Q Cash Flow Statement (XBRL)
The company spent $1.42 billion on share repurchases, significantly reducing cash and contributing to negative financing cash flow of $1.417 billion.
Source: 10-Q Cash Flow Statement (XBRL)
Current ratio improved to 5.35 as current liabilities fell 29.7% to $1.46 billion, while current assets declined modestly.
Source: 10-Q Balance Sheet (XBRL)
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Net income includes substantial non-operating gains, potentially from volatile investment holdings. A reversal could significantly impact earnings.
Source: 10-Q Income Statement (XBRL)
The company deployed $1.42 billion on buybacks, exceeding operating cash flow of $658 million. This may strain liquidity if not funded by investment sales or debt.
Source: 10-Q Cash Flow Statement (XBRL)
Operating cash flow was only 44% of net income, indicating potential quality of earnings issues due to non-cash items or working capital changes.
Source: 10-Q Cash Flow Statement (XBRL)
Investing activities generated a net inflow of $571 million, likely from sales of securities, suggesting a significant portfolio that could expose Shopify to market risk.
Source: 10-Q Cash Flow Statement (XBRL)
Gross margin declined slightly by 0.9 percentage points to 47.7%, indicating potential cost pressures or product mix shift, despite overall revenue growth.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.58 $B | 2.68 $B | +33.69% |
Cost of Revenue $B | 1.88 $B | 1.38 $B | +36.07% |
Gross Profit $B | 1.71 $B | 1.30 $B | +31.18% |
Operating Income $M | 488.00 $M | 291.00 $M | +67.70% |
Net Income $B | 1.50 $B | 0.91 $B | +65.78% |
EPS (Basic) $ | 1.16 $ | 0.70 $ | +65.71% |
EPS (Diluted) $ | 1.16 $ | 0.69 $ | +68.12% |
R&D Expense $M | 445.00 $M | 394.00 $M | +12.94% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Shopify delivered strong Q1 2026 results with revenue surging 34.3% YoY to $3.17B and operating income nearly doubling to $382M, though a $581M net loss persisted primarily due to non-cash investment-related charges.
Shopify delivered strong FY2025 revenue growth of 30.1% to $11.6B, with operating income up 36.6%, but net income fell 39.0% to $1.2B due to non-operating items, while free cash flow surged and the balance sheet remained exceptionally strong with a current ratio near 6x.