Shopify’s fourth quarter results exceeded Wall Street’s expectations for both revenue and profitability, but the market responded negatively to the report. Management attributed the quarter’s revenue growth to increased adoption of value-added merchant services and continued momentum in Shopify Payments. However, leadership acknowledged that elevated investment in AI-driven enhancements and expanding international infrastructure contributed to stable operating margins despite higher sales. President Harley Finkelstein noted the company’s focus on “enhancing functionality while maintaining the reliable services that our merchants expect,” underscoring a cautious approach to platform evolution.
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Shopify (SHOP) Q4 CY2025 Highlights:
- Revenue: $3.67 billion vs analyst estimates of $3.60 billion (30.6% year-on-year growth, 2% beat)
- Adjusted EPS: $0.48 vs analyst expectations of $0.51 (5.7% miss)
- Adjusted Operating Income: $760 million vs analyst estimates of $697.2 million (20.7% margin, 9% beat)
- Operating Margin: 17.2%, in line with the same quarter last year
- Billings: $3.66 billion at quarter end, up 31% year on year
- Market Capitalization: $148.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Shopify’s Q4 Earnings Call
- Colin Sebastian (Baird): asked about the pace of AI integration and how Shopify will avoid disruption to core services. President Harley Finkelstein emphasized a careful rollout that leverages experience to combine new AI capabilities with stable platform operations.
- Craig Maurer (FT Partners): inquired about international expansion challenges related to regulations and payments. CFO Jeff Hoffmeister described a systematic approach involving partnerships with local regulatory bodies and the expansion of Shopify Payments to 60 countries.
- No other analyst questions on the call
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will watch (1) the rollout and merchant adoption rate of new AI-based features, (2) the pace of international expansion and Shopify Payments localization efforts, and (3) the company’s ability to maintain margins while absorbing higher regulatory and technology investment costs. Execution on AI integration without service disruption will also be a critical marker.
Shopify currently trades at $113.20, down from $127.24 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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