NEW YORK, July 27, 2026, 14:02 EDT
- Shares gained 10.2% to reach $125.40 in early afternoon trade.
- Shares of Wix.com Ltd. NASDAQ:WIX rose 10.8%, as software stocks climbed 2.8%.
- Roughly 84% of the growth in first-quarter merchant-solutions revenue at Shopify came from payments.
Shares of Shopify climbed 10.2% to reach $125.40 as of 1:47 p.m. EDT Monday, trading close to their session peak while U.S. markets stayed open.
The advance exceeded the overall market performance. The S&P 500 finished largely unchanged, and the Nasdaq declined by 0.2%.
Shopify’s most recent update to investors is still its July 8 earnings announcement. This draws focus away from new developments, putting the spotlight on sector rotation and positioning ahead of results.
The August 5 update will highlight a subtler concern: the quality of payments. In the March quarter, Shopify Payments volume increased at a quicker rate than overall merchandise volume.
| First-quarter metric | 2026 | 2025 | Change |
|---|---|---|---|
| Gross merchandise value | $100.74 billion | $74.75 billion | +34.8% |
| Volume through Shopify Payments | $67.1 billion | $47.5 billion | +41.3% |
| Payments adoption rate | 67% | 64% | +3 percentage points |
| Revenue from merchant solutions | $2.42 billion | $1.74 billion | +39.1% |
| Gross profit margin | 48.8% | 49.5% | -0.8 percentage point |
| Losses from transactions and loans | $116 million | $75 million | +54.7% |
Reported figures form the basis for growth rates and margins, which are rounded.
Payments revenue rose by $572 million, accounting for approximately 84% of the growth in merchant-solutions revenue, according to company filings.
The increase was not without expense. Merchant solutions accounted for 76% of revenue, compared to 74% previously.
Gross profit rose by 32%, lagging behind the pace of overall revenue growth. Transaction and loan losses surged 55% to reach $116 million.
This represents the main trade-off for investors. Increased payments activity drives up sales, while the composition results in lower margins and greater credit risk.
Shopify anticipates its second-quarter revenue will rise in the high twenties percentage range, while it projects gross profit to grow in the mid-twenties range.
Operating expenses are expected to account for 35% to 36% of revenue. The free-cash-flow margin is projected to stay in the mid-teens.
Shopify President Harley Finkelstein pointed to the company’s “strong, durable growth and two decades of commerce intelligence.” The company’s scale is now seen as essential by investors to safeguard unit economics. Shopify
The surge was echoed elsewhere. Wix climbed 10.8%, adding weight to the argument that investors were broadly buying software stocks.
On August 5, three key metrics will be in focus: payments penetration, gross margin, and transaction losses. Accelerated expansion in payments, if achieved without further pressure on margins, would bolster the investment outlook.
Risks: A deceleration in merchant spending, an increase in credit losses, or shrinking margins may offset Monday’s rise. In addition, elevated interest rates or fresh geopolitical tensions could weigh on software valuations.
Monday’s surge changed expectations. The following direction hinges on whether rising payments can translate into sustained profit.
