Shopify Beats Revenue Estimates and Reveals $2 Billion Stock Repurchase

2026-02-11 companies

Ottawa, Wednesday, 11 February 2026.
On February 11, 2026, Shopify reported a 31% surge in holiday-quarter revenue, reaching $3.67 billion and defying economic headwinds. Buoyed by resilient consumer spending and a strong 2026 outlook, the e-commerce giant also authorized a new $2 billion share buyback program, signaling robust confidence in its long-term growth.

Resilient Consumer Spending Drives Growth

The company’s performance for the quarter ended December 31, 2025, underscores a robust retail environment. Shopify’s revenue for the fourth quarter climbed 31% year-over-year to $3.67 billion, comfortably exceeding analyst estimates of $3.59 billion [1]. This growth was underpinned by a significant expansion in Gross Merchandise Volume (GMV), which represents the total dollar value of orders processed through the platform. GMV for the holiday quarter rose to $123.84 billion, an increase of roughly 31.103% from the $94.46 billion recorded in the same period the prior year [1].

Strategic Capital Allocation

In a move demonstrating confidence in its financial stability and future cash flow generation, Shopify’s Board of Directors has authorized a share repurchase program of up to $2 billion [2]. This program, which is capped at a maximum of 5% of the company’s issued and outstanding Class A subordinate voting shares, is scheduled to commence on February 17, 2026 [4].

Positive Outlook for 2026

Looking ahead, Shopify has issued strong guidance for the first quarter of 2026, further fueling investor optimism. The company expects revenue to grow at a low-thirties percentage rate on a year-over-year basis, with gross profit dollars projected to increase in the high-twenties percentage range [2]. This forecast suggests that the momentum from the holiday season is expected to carry into the new year, despite external economic pressures such as tariffs and rising prices [1].

The “Year of the Builder”

Shopify President Harley Finkelstein framed the company’s trajectory as entering a “new era of AI commerce,” describing 2025 as a year of “full throttle” growth [2]. Finkelstein declared 2026 to be the “year of the builders,” with Shopify positioning itself to power merchants from their first sale to full scale [3]. While the company celebrates its top-line expansion, it is also managing its bottom line carefully. For the fourth quarter, Shopify reported a profit of $743 million [6]. However, adjusted profit came in at 48 cents per share, which slightly missed the estimated 51 cents [1].

Sources

Ecommerce Shopify