Shopify Inc. (SHOP) AI Stock Analysis

Shopify Inc., headquartered in Ottawa, Canada, operates a global commerce platform across Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Its platform empowers merchants to display, manage, market, and sell products across web and mobile storefronts, physical retail locations, pop-up shops, social media platforms, native mobile apps, buy buttons, and marketplaces. Core offerings include tools for managing products, inventory, orders, payments, fulfillment, shipping, and customer relationships. Shopify also provides product sourcing, analytics, reporting, cash flow management, financing options, customizable themes and apps, domain registration, and merchant working capital solutions.

Shopify generated revenue of $4.61B in FY2021, which grew 21.4% to $5.60B in FY2022, 26.1% to $7.06B in FY2023, 25.8% to $8.88B in FY2024, and 30.1% to $11.56B in FY2025, reflecting a 5-year revenue CAGR of 31.6%. Operating margin shifted from 5.8% in FY2021 to -14.7% in FY2022 and -20.1% in FY2023, before recovering to 12.1% in FY2024 and 12.7% in FY2025. Gross margin was 48.1% in FY2025, compared to 53.8% in FY2021. For the latest quarter ended June 30, 2026, quarterly revenue growth YoY reached 33.7% and quarterly earnings growth YoY reached 68.1%, with TTM revenue totaling $13.27B.

As of June 30, 2026, Shopify held $4.95B in cash and short-term investments and $178.0M in total debt, yielding net cash of $4.77B. Shareholders' equity was $12.68B against total assets of $14.47B. The company maintained a current ratio of 5.35 and a debt-to-equity ratio of 0.01. Operating cash flow reached $2.03B and free cash flow was $2.01B in FY2025, while capital expenditures were $26.0M. Over 5 years, share count change was 3.2%.

At a last close of $169.52, Shopify has a market cap of $219.98B and an enterprise value of $178.37B. Its trailing P/E of 114.5x, forward P/E of 58.8x, and EV/EBITDA of 74.6x trade at a premium to the median of its Nasdaq-100 Technology peers, which post 42.1x, 25.1x, and 30.6x, respectively. The price-to-sales ratio is 16.6x versus the peer median of 11.9x. Over 1 year, Shopify returned 8.3% compared to 16.8% for SPY, while its 5-year return of 19.0% lagged the SPY return of 83.0%.

Wall Street analysts maintain 31 Strong Buy, 11 Buy, 11 Hold, 0 Sell, and 1 Strong Sell ratings on Shopify. The mean price target is $175.71, representing 3.7% upside relative to the last close of $169.52. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $1.91 on revenue of $15.25B. For the next fiscal year, 40 analysts project revenue of $19.21B with EPS of $2.46. Shopify beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Shopify Inc. (SHOP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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