Shopify (SHOP) reports Q2 2026 earnings and revenue beats as sales grow 33.7% and free cash flow strengthens.
Stock Earnings Results
August 5, 2026
Table of Contents
August 5, 2026
Shopify Inc. (NYSE: SHOP) reported second-quarter 2026 results above expectations, supported by strong revenue growth, higher gross merchandise volume, improved operating income, stronger free cash flow, and a high-teens free cash flow margin.
Shopify provides internet infrastructure for commerce. Its platform helps merchants start, run, and grow businesses across online stores, physical retail, marketplaces, social channels, payments, fulfillment, and business management tools.
The company reported EPS of $0.42, above estimates of $0.40, representing a 5.0% earnings surprise, according to the dashboard. Revenue came in at $3.58 billion, above estimates of $3.43 billion, with revenue growth of 33.7%.
Revenue increased 34% year-over-year to $3.58 billion.
On a constant currency basis, revenue increased 33%.
Gross merchandise volume increased 32% to $115.57 billion.
Gross profit increased 31% to $1.71 billion.
Operating income increased to $488 million from $291 million in the prior-year quarter.
Free cash flow increased to $654 million from $422 million.
Free cash flow margin improved to 18% from 16%.
Merchant Solutions revenue increased to $2.78 billion from $2.02 billion in the prior-year quarter.
Subscription Solutions revenue increased to $802 million from $656 million.
The stronger Merchant Solutions growth shows continued expansion in payments, commerce services, merchant activity, and transaction-driven revenue across Shopify’s platform.
Monthly recurring revenue increased to $221 million from $185 million.
Shopify reported GMV of $115.57 billion.
That was up from $87.84 billion in the prior-year quarter.
On a constant currency basis, GMV increased 30%.
Management said GMV growth accelerated on top of a strong prior-year comparison, with solid results across merchant sizes, channels, and geographies.
That matters because GMV is a key signal for overall merchant activity on Shopify’s platform.
Gross profit increased to $1.71 billion.
Operating income increased 68% year-over-year to $488 million.
Net income was $1.50 billion, compared with $906 million in the prior-year quarter.
Net income excluding the impact of equity investments was $439 million.
That compared with $338 million in the prior-year quarter.
The difference matters because Shopify’s equity investments can create large mark-to-market gains or losses that do not reflect core commerce operations.
Net cash provided by operating activities was $658 million.
Capital expenditures were only $4 million.
Free cash flow was $654 million.
Free cash flow margin was 18%.
Shopify said operating leverage flowed through to free cash flow, showing that the company is growing while keeping financial discipline.
Shopify ended the quarter with $1.66 billion in cash and cash equivalents.
The company also held $3.29 billion in marketable securities.
Total assets were $14.47 billion.
Shareholders’ equity was $12.68 billion.
During the quarter, Shopify repurchased $1.42 billion of common stock.
For the third quarter of 2026, Shopify expects revenue to grow at a low-thirties percentage rate year-over-year.
Gross profit dollars are expected to grow at a mid-to-high twenties percentage rate.
Operating expenses are expected to be 33% to 34% of revenue.
Stock-based compensation is expected to be $150 million.
Free cash flow margin is expected to be in the high-teens to low-twenties.
Shopify delivered a strong commerce software quarter.
Revenue beat expectations, GMV increased 32%, revenue grew 34%, gross profit rose 31%, and free cash flow climbed to $654 million. The company also guided for another low-thirties revenue growth quarter and high-teens to low-twenties free cash flow margin.
The key question is whether Shopify can keep compounding merchant growth, payments activity, AI-driven tools, and operating leverage while managing transaction losses, competition, and broader consumer spending risk.
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