Shopify The company on Wednesday reported fourth-quarter results that beat the top line, providing strong guidance for the start of the year. The stock price fell more than 10%.
Here’s how the company performed compared to the expectations of analysts surveyed by LSEG:
Earnings per share: Adjusted 48 cents vs. 51 cents Earnings: $3.67 billion vs. $3.59 billion
The Canadian e-commerce company said it expects first-quarter sales to grow “in the low 30s” compared to the same period last year, higher than the 25.1% growth expected by analysts, according to FactSet.
Shopify expects first-quarter free cash flow margins to be in the “low to mid-teens,” which is slightly down from a year ago. CFO Jeff Hoffmeister told analysts that this reflects the company’s continued investment in AI tools.
The company’s board also approved a $2 billion share buyback.
Stocks of software companies have sold off sharply in recent weeks as investors grow increasingly concerned about the potential threat posed by artificial intelligence tools.
Shopify, which sells software to help businesses launch and run online stores, is positioning itself at the forefront of new AI shopping tools. The company was an early partner when OpenAI launched its instant checkout feature; google Develop protocols for AI shopping bots that facilitate transactions on the web.
Shopify President Harley Finkelstein said in an interview with CNBC’s “Squawk on the Street” on Wednesday that the company has “laid the rails” for AI shopping and is poised to benefit from AI’s disruption of e-commerce.
Finkelstein said some fears that AI-driven software will become extinct are overblown.
“I think there’s an incredible opportunity in AI, but I think we need to look at companies that are serving as infrastructure and platforms, not just companies that are just a function,” Finkelstein said. “Shopify is internet infrastructure.”
Adobe Analytics said the company’s revenue was boosted by the important holiday season, which saw “record” spending in 2025. Adobe said online spending from Nov. 1 to Dec. 31 rose 6.8% to $257.8 billion, exceeding expectations of $253.4 billion.
Shoppers remained resilient during the holiday season despite a tough economic backdrop that included declining consumer confidence, President Donald Trump’s sweeping tariffs and a slowing job market.
The Commerce Department reported Tuesday that retail sales were flat in December following a 0.6% increase in November, ending the year on a weak note after a period of strong shopping activity.
Shopify’s total product volume, or the total amount of products sold on the platform, exceeded expectations. GMV rose 29% year over year to $123.8 billion, beating analysts’ expectations of $121.3 billion, according to FactSet.
