Shopify Q2: 34% Revenue Growth, $1.5B Net Income, 18% FCF Margin
SHOP sits 67% above its 52-week low of $94 on elevated volume (2.0× avg).
Summary
Shopify reported Q2 2026 revenue of $3.58 billion (34% YoY growth), net income of $1.5 billion, and free cash flow of $654 million (18% margin). Q3 guidance calls for continued strong growth.
Key Events · Earnings and Guidance · SHOP
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Q2 Revenue +34% to $3.58B
Revenue grew 34% year-over-year (33% constant currency) to $3.58 billion, driven by 32% GMV growth to $115.6 billion and 37% merchant solutions revenue growth.
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Net Income of $1.5B
Net income reached $1.5 billion, including $1.06 billion in mark-to-market gains on equity investments. Excluding those gains, net income was $439 million.
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Free Cash Flow Margin Expands to 18%
Free cash flow was $654 million, representing an 18% margin, up from 16% a year ago, reflecting operating leverage and financial discipline.
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Q3 Guidance: Low-Thirties Revenue Growth
For Q3 2026, Shopify expects revenue growth in the low-thirties percentage range, gross profit growth in the mid-to-high twenties, and free cash flow margin in the high-teens to low-twenties.
Analysis · SHOP · Technology
Shopify delivered broad-based 30%+ growth across GMV, revenue, gross profit, and free cash flow. Revenue hit $3.58 billion, up 34% year-over-year, while free cash flow margin expanded to 18%. The company also provided Q3 guidance calling for low-thirties revenue growth and high-teens to low-twenties free cash flow margin. These results reinforce the compounding growth model management has been building, with operating leverage flowing through to the bottom line.
At the time of this filing, SHOP was trading at $156.97 on NASDAQ in the Technology sector, with a market capitalization of approximately $160B. The 52-week trading range was $94.00 to $182.19. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.