Shopify 1Q Revenue, Profit Seen Higher as Investors Focus on AI Strategy, Growth -- Earnings Preview

Dow Jones
9 hours ago
 

By Adriano Marchese

 

Shopify is scheduled to report earnings for the first quarter on Tuesday. Here is what you need to know.

 

REVENUE: Revenue is expected to jump to US$3.12 billion, according to FactSet, up from US$2.36 billion a year earlier.

EARNINGS PER SHARE: Earnings on a per-share basis are projected to come in at 24 U.S. cents a share, up from a loss of 53 U.S. cents a share.

ADJUSTED EPS: Analysts forecast 33 U.S. cents a share.

Shares fell 21% so far this year and recently traded at 173.72 Canadian dollars (US$127.82) in Toronto.

 

--Investors will be keen to hear more about Shopify's push into agentic commerce, especially after the recent pullback tied to broader software concerns. Morgan Stanley analyst Keith Weiss says agentic commerce--which is artificial intelligence that shops, compares, and buys on behalf of the consumer--still needs clearer definition and execution signals. "Materiality of agentic bear case is feeling better understood, though upside potential is still far from clear," he says.

--Observers will want to see how Shopify's growth trajectory is holding up amid geopolitical tensions and pressure on the consumer. Weiss notes that while headwinds have intensified, there are still signs of resilience in key markets like the U.S. "Although heightened geopolitical stress has incrementally pressured consumer sentiment, U.S. ecommerce demand continues to look healthy with 1Q nonstore sales growth remaining durable," he says.

--Investors will also be watching Shopify's profitability path, particularly how management is balancing reinvestment with operating leverage. Weiss expects margins to be around 15.5% as the company continues to invest behind key growth drivers.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

May 04, 2026 14:26 ET (18:26 GMT)

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