SPS Commerce, Inc. (SPSC) AI Stock Analysis

SPS Commerce, Inc. specializes in providing cloud-based solutions for supply chain management on a global scale. Its core offering is the SPS Commerce platform, which helps retailers, suppliers, grocers, distributors, and logistics firms manage operations and fulfill omnichannel orders. The platform includes a Fulfillment solution that automates fulfillment processes, integrates with electronic communication infrastructures, and ensures compliance with retailer specifications. Its Analytics solution offers applications that deliver deeper operational insights to enhance visibility and decision-making. Additionally, the company provides assortment and community solutions that support accurate order management, rapid fulfillment, and vendor onboarding.

Annual revenue rose from $385.3M in FY2021 to $751.5M in FY2025, representing a 5-year revenue compound annual growth rate of 19.2% from FY2020 to FY2025. Gross margin reached 69.2% in FY2025, with operating margin at 15.7%, net income of $93.3M, and diluted earnings per share of $4.27. However, for the quarter ended June 30, 2026, quarterly revenue growth slowed to 5.6% year-over-year, bringing trailing twelve-month revenue to $772.5M. In that same quarter, quarterly earnings fell 63.9% year-over-year, which contributed to a trailing twelve-month profit margin of 10.1% and earnings per share of $2.07.

As of June 30, 2026, SPS Commerce held $173.2M in cash and short-term investments and $6.3M in total debt, leaving $166.9M in net cash. Total assets were $1.13B, supported by shareholders' equity of $938.5M, a current ratio of 2.26, and a debt-to-equity ratio of 0.01. During FY2025, the business generated $178.8M in operating cash flow and $152.3M in free cash flow. Capital expenditures totaled $26.5M, while share buybacks absorbed $114.3M, alongside a 5-year share count change of -0.3%.

With a market capitalization of $3.07B and enterprise value of $2.76B, SPSC trades at a trailing price-to-earnings ratio of 41.2x and a forward price-to-earnings ratio of 68.0x. These multiples sit above the median of its US-listed Technology peers, which trade at 28.1x trailing and 18.8x forward earnings. The stock's price-to-sales ratio of 4.0x also exceeds the peer median of 2.8x, while its EV-to-EBITDA ratio of 15.1x is below the peer median of 16.6x. Over the past year, SPSC fell 20.5%, trailing the 16.8% return of the S&P 500 ETF (SPY). Over five years, the stock dropped 47.7% compared to an 83.0% gain for SPY.

Wall Street analyst coverage includes 2 Strong Buy, 1 Buy, 8 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target is $76.82, which is 9.9% below the last close of $85.25. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $790.6M and earnings per share of $4.90, representing 14.8% growth. Across the last 4 quarters, the company posted 4 earnings per share beats, with its next earnings report scheduled for October 29, 2026.

This page is an AI-written research summary of SPS Commerce, Inc. (SPSC). 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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