Shopify Inc. surpassed analysts’ fourth-quarter revenue expectations, fueled by robust holiday consumer spending. Shares climbed sharply in premarket trading, reflecting investor enthusiasm for the e-commerce platform’s performance.
Key Financial Highlights
Revenue rose 31% to $3.7 billion in the quarter, exceeding the $3.6 billion forecast from analyst surveys. Gross merchandise volume reached nearly $124 billion, topping estimates as online transactions remained strong.
Adjusted diluted earnings per share came in at 48 cents, slightly below the anticipated 51 cents.
Merchants posted record sales of $14.6 billion over the Black Friday-Cyber Monday period, marking a 27% increase from the previous year.
Stock Reaction
U.S.-listed shares advanced as much as 14% in premarket trading on Wednesday, settling at an 11% gain to $109.48 by 7:41 a.m. in New York.
Outlook and Strategic Moves
The Ottawa-based company projects first-quarter revenue growth in the low-thirties percentage range. Operating expenses are expected to represent 37% to 38% of revenue.
“2025 was Shopify at full throttle — driving compounding growth, while laying the rails for the new era of AI commerce,” stated Shopify President Harley Finkelstein.
Shopify also announced a $2 billion share buyback program, set to begin on February 17.
