Shopify shares surged 18% after the e-commerce software company reported stronger-than-expected second-quarter results and gave a sales forecast above Wall Street estimates, easing concerns that new AI tools could hurt demand for its services. The company posted adjusted earnings of 42 cents per share on revenue of $3.58 billion. Analysts polled by Visible Alpha had expected earnings of 40 cents per share and revenue of $3.46 billion.
Revenue rose 34% from a year earlier, showing that Shopify continues to attract merchants to its online selling tools even as competition rises in the e-commerce and artificial intelligence space. Gross merchandise volume, or the total value of goods sold through Shopify’s platform, rose 32% year-on-year to $115.57 billion. Analysts had expected $111.98 billion.
Revenue, GMV beat estimates
The quarter showed broad strength across Shopify’s key metrics. Revenue, gross merchandise volume, gross profit and free cash flow all grew more than 30%.
"This was a monster quarter: more than 30% growth in GMV AND revenue AND gross profit AND free cash flow," Shopify President Harley Finkelstein said. "We power every kind of business, and with AI, we’re expanding what’s possible for all of them."
Shopify provides tools that help merchants build online stores, process payments, manage sales and run digital commerce operations. The company has also been adding AI features to help sellers improve product listings, customer engagement and business operations.
The strong numbers suggest that AI is helping Shopify strengthen its platform rather than weaken demand for it.
For the third quarter, Shopify expects revenue to grow at a low-thirties percentage rate. Investors had been worried that smaller merchants could start using new AI tools to build and run online stores without relying as much on Shopify.
The company’s forecast signalled that demand remains healthy and that its own AI investments are helping bring more merchants to its platform.
