Shopify Q2 FY2026: revenue up 34.0%, EPS flattered by investment gains
Shopify grew revenue 34.0% to $3.58 billion and operating income 67.7% to $488 million in the June 2026 quarter — a genuinely strong quarter whose headline EPS of $1.16 was inflated by $1.06 billion of equity-investment gains. Read the scorecard on operating income and free cash flow, not net income: excluding those marks, the business earned $439 million.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $1.16 crushed the $0.4099 consensus estimate, but $1.06 billion of the $1.50 billion net income came from marking equity investments to market rather than from selling software. Strip those marks out and net income was $439 million versus $338 million a year ago, up 29.9%. The beat is real but flattered — the operating engine is the number worth trusting.
Revenue rose 34.0% to $3.58 billion from $2.68 billion, with merchant solutions up 37.0% to $2.78 billion and subscription solutions up 22.0% to $802 million. Volume grew too: GMV climbed 32.0% to $115.57 billion and monthly recurring revenue went from $185 million to $221 million. Gross margin slipped to 47.7% from 48.6%, so the growth arrived a little cheaper than last year's.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-24
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.