TLDR
- Shopify reported Q1 revenue of $3.17 billion, up 34% year-over-year, beating analyst estimates of $3.09 billion.
- Net income came in at $360 million, missing Wall Street’s forecast of $419 million.
- After investment losses, Shopify posted a net loss of $581 million, or 45 cents per share; analysts expected a 24-cent profit.
- Gross merchandise volume rose to $100.74 billion, up from $74.75 billion a year ago.
- Shopify guided for high-twenties revenue growth in Q2, with gross profit expected to grow at a mid-twenties rate.
Shopify came into Tuesday’s earnings report already under pressure. The stock was down 21% year-to-date heading into the print, weighed down by a Q4 miss and lingering concerns that AI tools could chip away at its core commerce software business.
Shopify Earnings Leave Investors Wanting…$SHOP revenue topped estimates, but weaker net income and AI disruption fears kept pressure on the stock after earnings 📉 pic.twitter.com/GK31Kce4WQ
— CoinCentral (@realcoincentral) May 5, 2026
The results didn’t do much to change that story.
Shopify stock dropped 7.2% in premarket trading after the company reported Q1 earnings that beat on revenue but fell short on the bottom line.
Revenue came in at $3.17 billion for the quarter, up 34% from $2.36 billion a year ago, clearing the analyst consensus of around $3.09–$3.12 billion. Adjusted earnings per share were 36 cents, also ahead of the 33-cent estimate.
But the headline net income number disappointed. Shopify reported net income of $360 million on an adjusted basis, below the $419 million Wall Street had expected.
Once investment losses were factored in, the picture looked worse. The company swung to a net loss of $581 million, or 45 cents per share, compared to a loss of $682 million, or 53 cents per share, in the same quarter last year. Analysts had been modeling a profit of 24 cents per share.
Revenue Growth Broad-Based Across Segments
The top-line beat was driven by growth across both of Shopify’s main business lines.
Subscription solutions revenue reached $750 million, up $130 million year-over-year. Monthly recurring revenue — the predictable income from merchants on paid plans — climbed to $212 million from $182 million.
Merchant solutions, the larger segment that includes payment processing and other commerce tools, grew to $2.42 billion from $1.74 billion.
Gross merchandise volume — the total value of orders processed through Shopify’s platform — hit $100.74 billion, compared to $74.75 billion in Q1 last year.
CFO Jeff Hoffmeister said growth was broad-based across all regions, merchant types, and sales channels.
Q2 Outlook Points to Continued Growth
Looking ahead, Shopify guided for Q2 revenue growth in the “high-twenties” percentage range versus the prior year.
Gross profit dollars are expected to grow at a mid-twenties rate. Operating expenses are forecast at 35–36% of revenue, with stock-based compensation of around $145 million.
The guidance isn’t bad, but it came alongside a bottom-line miss that stung. Adjusted EPS of 36 cents did top estimates, but the reported net loss of 45 cents per share — driven in part by investment losses — overshadowed the beat.
Shopify was already one of the weaker performers in the e-commerce software space this year before Tuesday’s report.
The combination of a Q4 miss, fears around AI disruption to its business model, and now another bottom-line disappointment has kept pressure on the stock.
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