Shopify (SHOP) Q2 2026 earnings summary

Executive summary

• Achieved 34% year-over-year revenue growth for Q2 2026, with GMV up 32% to $116 billion and free cash flow margin at 18%, driven by broad-based merchant activity and AI-driven commerce.

• Net income for Q2 2026 was $1.5 billion, up from $906 million in Q2 2025, with diluted EPS of $1.16.

• AI-driven commerce and tools like Sidekick and Catalog accelerated merchant success, with 3x YoY increases in AI traffic and orders.

• Merchant solutions accounted for 77% of total revenues, with millions of merchants in 175+ countries and a catalog exceeding 1 billion products.

• Merchant retention remains high, especially as merchants scale, with 92% retention at $1M GMV and 97% at $10M.

Financial highlights

• Q2 2026 revenue was $3.58 billion, up 34% year-over-year; GMV reached $116 billion, up 32% year-over-year.

• Gross profit for Q2 2026 was $1.71 billion, with a gross margin of 47.7%.

• Free cash flow margin reached 18%, with free cash flow of $654 million, up from $422 million year-over-year.

• Merchant solutions revenue grew 37% to $2.78 billion; subscription solutions revenue up 22% to $802 million.

• Shopify Payments processed $78.1 billion in GMV in Q2 2026, representing 68% GMV penetration.

Outlook and guidance

• Q3 2026 revenue expected to grow at a low-thirties percentage rate year-over-year, with gross profit dollars projected to grow in the mid- to high-twenties.

• Operating expenses as a percentage of revenue anticipated at 33% to 34%; free cash flow margin forecasted in the high-teens to low-twenties.

• Management expects continued investment in platform development, international expansion, and AI capabilities to drive future growth.

• No significant FX impact anticipated; increased seasonality expected as merchant solutions continue to grow.