Shopify Q1 revenue rises 34% on broad growth

Shopify

05/05/2026 12:14

Overview

Canada e-commerce platform's Q1 revenue rose 34% yr/yr, free cash flow margin held at 15%

Company reported Q1 GMV over $100 bln, reflecting broad-based growth across geographies and channels

Shopify expects Q2 revenue to grow at a high-twenties percentage rate yr/yr

Outlook

Shopify expects Q2 revenue to grow at a high-twenties percentage rate year-over-year

Company sees Q2 gross profit dollars growing at a mid-twenties percentage rate year-over-year

Shopify expects Q2 operating expenses at 35%-36% of revenue and free cash flow margin in mid-teens

Result Drivers

BROAD-BASED GROWTH - Co said Q1 growth was broad-based across geographies, merchant sizes, and channels, per CFO Jeff Hoffmeister

MERCHANT AND SUBSCRIPTION SOLUTIONS - Both merchant solutions and subscription solutions contributed to revenue growth, with merchant solutions up 39% and subscription solutions up 21% yr/yr

PLATFORM INVESTMENT - Co said it is investing in merchant-facing tools and internal capabilities to support ongoing growth and innovation

Company press release: ID:nGNXbmyyrD

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$3.17 bln
Q1 Free Cash Flow
$476 mln
Q1 GMV
$100.74 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Shopify Inc is C$180.00, about 3.8% above its May 4 closing price of C$173.37

The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 71 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)