Shopify Soars on Earnings Beat, Upbeat Q1 Outlook, and $2 Billion Buyback Plan

Shares of Shopify Inc. surged more than 12% in premarket trading on Wednesday after the e-commerce platform delivered stronger-than-expected fourth-quarter results, issued robust first-quarter revenue guidance, and unveiled a $2 billion share repurchase program.

For the quarter ended December 31, 2025, Shopify reported adjusted earnings per share of $0.57, comfortably beating analysts’ expectations of $0.51. Revenue climbed 31% year-on-year to $3.67 billion, exceeding the consensus forecast of $3.59 billion. The performance marked Shopify’s eleventh consecutive quarter of at least 25% revenue growth, excluding its logistics business.

“2025 was Shopify at full throttle—driving compounding growth while laying the rails for the new era of AI commerce,” said Shopify President Harley Finkelstein. The strong finish capped a solid year for the company, with full-year 2025 revenue reaching $11.56 billion, up 30% from 2024.

Profitability metrics also impressed investors. Shopify generated $715 million in free cash flow during the quarter, translating into a free cash flow margin of 19%. Gross merchandise volume (GMV) rose 31% to $123.84 billion in Q4, underscoring continued momentum across the platform.

Chief Financial Officer Jeff Hoffmeister emphasized the company’s ability to balance rapid growth with disciplined cash generation. “We closed Q4 with strong top-line growth and disciplined cash generation, with revenue up 31% year-over-year and a 19% free cash flow margin,” he said.

Looking ahead, Shopify offered an upbeat outlook for the first quarter of 2026. The company expects revenue to grow at a low-thirties percentage rate year-on-year, broadly in line with Q4’s pace and well above the analyst consensus estimate of a 25.2% increase, according to LSEG data. Shopify also forecast a free cash flow margin in the low-to-mid teens for Q1, slightly below the same period last year but still reflecting healthy cash generation.

The combination of an earnings beat, strong forward guidance, and a sizable share buyback reinforced investor confidence in Shopify’s growth trajectory, fueling the sharp rally in its shares.