Shopify Stock Price Hits $141 Premarket After Q4 Revenue Beat, EPS Miss

Shopify shares trade at $141.25 in premarket action , up more than 11% after closing at $127.24, reflecting a strong investor response to its latest earnings and capital allocation update. The rally follows the company’s announcement of a new $2 billion stock buyback program and an upbeat quarterly revenue forecast that exceeded market expectations. Source: Yahoo Finance Investors reacted quickly as the e-commerce platform signaled confidence in its growth trajectory despite macroeconomic pressures tied to tariffs, rising living costs, and labor market concerns. Strong Revenue Growth Beats Estimates Shopify reported total revenue of $3.67 billion for the quarter ended December, marking a 31% year-over-year increase and surpassing analyst expectations of $3.59 billion. Gross profit reached $1.69 billion, rising more than 25% compared to the prior year. Source: Shopify via X The company projected revenue growth in the low-thirties percentage range for the January–March quarter. Analysts had expected a 25.2% increase, according to LSEG data. Shopify also expects profit to expand in the high-twenties percentage range during the current quarter. Gross merchandise volume totaled $123.84 billion in the holiday quarter, up from $94.46 billion a year earlier. Consumer spending trends supported this expansion. U.S. consumer sentiment reached a six-month high in early February, while spending rose solidly in October and November, supporting strong holiday sales. Full-Year 2025 Performance Highlights For the full year ended December 31, 2025, Shopify generated $11.56 billion in total revenue, reflecting 30% growth. Gross profit increased 24% to $5.56 billion, representing 48% of total revenue. Income from operations rose to $1.47 billion from $1.08 billion in the prior year. Net income reached $1.23 billion, down from $2.02 billion due to losses on equity and equity method investments. Basic net income per share stood at $0.95, while diluted earnings per share came in at $0.94. Shopify facilitated $378.4 billion in gross merchandise volume for 2025, up 29% year over year. The United States accounted for 44% of revenue, followed by Europe, the Middle East, and Africa at 31%, and Asia Pacific at 16%. Buyback Plan Signals Capital Confidence The newly authorized share repurchase program allows Shopify to buy back up to $2 billion of its Class A subordinate shares. The company held $5.8 billion in cash, cash equivalents, and marketable securities as of year-end 2025, providing flexibility for both repurchases and strategic investments. Chief Financial Officer Jeff Hoffmeister stated that the company ended 2025 with strength across merchant sizes, regions, and channels. The buyback announcement signals management’s confidence in future cash flows while maintaining liquidity for expansion initiatives. AI And Platform Expansion Drive Strategy Shopify continues to integrate AI-powered tools into its platform. Products such as Sidekick, an AI-enabled commerce assistant, and Agentic Storefronts aim to improve merchant productivity and customer engagement. The company invests heavily in research and development focused on machine learning and data analytics. Management plans to expand international operations and strengthen merchant solutions, including Shopify Payments and Shopify Capital. At the same time, the company acknowledges risks tied to competition, regulatory shifts, cybersecurity threats, and macroeconomic volatility. As investors weigh the buyback plan against forward guidance, market participants will watch whether Shopify sustains its revenue momentum in the coming quarters. For now, the sharp premarket surge reflects strong confidence in the company’s 2026 outlook.