tech
February 11, 2026
Shopify stock drops despite revenue beat, $2 billion buyback
The company missed analysts' expectations for earnings, and it forecast free-cash-flow margins in the first quarter that could be lower than last year.
TL;DR
- Shopify reported Q4 revenue of $3.67 billion, surpassing analyst estimates of $3.59 billion.
- Adjusted earnings per share were 48 cents, falling short of the 51 cents expected by analysts.
- The company anticipates Q1 revenue to grow in the 'low-thirties percentage rate' year over year, exceeding analyst forecasts.
- Shopify projects Q1 free-cash-flow margin to be in the 'low-to-mid teens,' reflecting investments in AI.
- A $2 billion share buyback program was approved by the board of directors.
- Gross merchandise volume (GMV) surged 29% year over year to $123.8 billion, beating analyst estimates.
- Shopify is positioning itself in AI shopping tools, partnering with OpenAI and assisting Google in developing transaction protocols for AI shopping bots.
- President Harley Finkelstein emphasized Shopify's role as 'internet infrastructure' in the evolving AI landscape.
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