Shopify Says AI-Driven Orders Are Tripling As New Buyers Arrive Nearly Twice As Fast

Shopify Inc. (NASDAQ: SHOP ) stock rose Wednesday after the e-commerce software company reported second-quarter fiscal 2026 results that beat Wall Street expectations and issued third-quarter revenue guidance above estimates.

The company reported adjusted earnings of 42 cents per share, topping the analyst consensus estimate of 40 cents.

Revenue increased 34.3% year over year to $3.58 billion, exceeding the consensus estimate of $3.45 billion.

The results eased investor concerns about AI-related spending and increasing competition.

Shopify Key Metrics Adjusted net income increased to $439 million from $338 million a year earlier.

Gross merchandise volume (GMV) rose 32% year over year to $115.57 billion.

On a constant-currency basis, GMV increased 30%.

Merchant Solutions revenue climbed 37% to $2.78 billion, while Subscription Solutions revenue increased 22% to $802 million.

Gross margin declined to 47.67% from 48.58% a year earlier.

Gross profit increased 31% to $1.71 billion.

Operating cash flow totaled $658 million, while free cash flow reached $654 million.

Free cash flow margin expanded 200 basis points year over year to 18%.

AI Orders And Traffic Surge Shopify highlighted accelerating adoption of AI-powered commerce during the quarter, saying AI-driven traffic and orders to merchant stores both tripled year over year.

Management also said new buyer orders generated through AI channels are arriving at nearly twice the rate of other sales channels, suggesting AI is becoming an increasingly effective customer acquisition tool.

While AI-driven commerce still represents a small share of Shopify’s overall gross merchandise volume, the company said the growth trends are encouraging, with AI search delivering higher conversion rates and helping smaller merchants reach more buyers.

Read Also: Shopify Boosts Buyback Program To $5 Billion: What Investors Need To Know Executive Commentary President Harley Finkelstein said Shopify delivered a strong quarter, with GMV, revenue, gross profit and free cash flow each growing more than 30%.

The company said it expects revenue growth in the low-30% range, above Wall Street’s estimate of about 27%, which would mark a sixth consecutive quarter of revenue growth exceeding 30%.

Finkelstein said Shopify continues to support businesses of all sizes and is using AI to expand merchants’ capabilities on the platform.

Chief Financial Officer Jeff Hoffmeister said GMV growth accelerated from an already strong prior-year comparison, driven by broad-based strength across merchant sizes, sales channels and geographic regions.

Hoffmeister said Shopify continued to improve operating leverage, contributing to an 18% free cash flow margin.

He said the quarter reflected the company’s focus on broad-based growth, consistency, compounding momentum and financial discipline.

Bloomberg Intelligence analyst Anurag Rana said investors had expected higher AI-related spending to pressure margins, but second-quarter operating expenses increased 21%, slightly below analyst expectations.

The results follow a July downgrade by Rothschild & Co Redburn, which lowered Shopify to Neutral, citing concerns that AI tools from Meta Platforms Inc. (NASDAQ: META ) could increase competitive pressure on Shopify’s small-business customer base.

Shopify Outlook Shopify expects third-quarter 2026 revenue to grow in the low-30% range year over year.

The guidance implies revenue of approximately $3.73 billion to $3.78 billion, above the analyst consensus estimate of $3.59 billion.

The company also expects free cash flow margin to remain in the high-teens to low-20% range.

SHOP Price Action: Shopify shares were up 19.14% at $146.90 at the time of publication on Wednesday, according to Pro data.

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