Shopify Q2 Earnings Call Spotlights AI Commerce and Growth

SHOP Sets a Low-30% Growth Bar for Q3

CFO Jeff Hoffmeister said third-quarter revenues should grow at a low-30% rate, with no significant foreign-exchange impact expected.

Gross profit dollars are projected to increase at a mid-to-high twenties rate. Operating expenses should equal 33% to 34% of revenues, compared with 37% a year earlier.

Free cash flow margin is expected in the high teens to low twenties. Hoffmeister said the forecast includes less than 1 point of benefit from the merchant cash advance accounting change.

Shopify Builds Around Agentic Commerce

President Harley Finkelstein said Shopify Catalog is becoming the structured product layer for AI discovery, drawing on more than 1 billion products and 20 years of commerce experience.

AI-driven traffic and orders to Shopify stores tripled year over year, while new-buyer orders from AI channels came in at nearly twice the rate of other channels. Catalog-powered searches converted at twice the rate of searches using scraped data.

Finkelstein also emphasized the Universal Commerce Protocol, which lets agents access product data, create carts and complete checkout while preserving merchant rules within Shopify.

SHOP Sees Payments and Merchant Breadth

Hoffmeister stated that merchant solutions revenues rose 37%, supported by GMV growth, higher payments penetration and strength in partner revenue shares and financial services.

Shopify Payments penetration increased 3 percentage points to 68% of global GMV. Europe segment improved more than 350 basis points, while Shopify Payments expanded to the United Arab Emirates.

Hoffmeister described a broad operating backdrop. International GMV grew 37%, offline GMV increased 32% and B2B GMV advanced 76%, while the largest merchant band remained the fastest-growing segment.

Shopify Defends Its AI Monetization Model

An Oppenheimer analyst asked how Shopify plans to capture value from AI. Finkelstein said agentic transactions carry the same economics as online-store transactions, with no separate fees.

A Morgan Stanley analyst pressed on direct monetization of Sidekick. Finkelstein stated that the current model centers on merchant success and that management reserves the right to reconsider its approach.

Sidekick usage supported that focus. Daily active merchants rose 3.6 times, daily sessions increased 4.8 times and merchants created 36,000 custom apps, up from 12,000 in the first quarter.

SHOP Keeps Enterprise Expansion in Focus

A JPMorgan analyst asked whether onboarding cycles for large enterprises can shorten. President Finkelstein pointed to faster migrations and said Shopify has built its sales function around getting larger merchants live more quickly.

In response to MoffettNathanson, Finkelstein said GMV does not create an upper bound for merchants on Shopify. He described Shop Pay and other commerce components as on-ramps for businesses not ready for full migration.

Finkelstein also highlighted expansion across online, point-of-sale, B2B and payments. He presented that cross-sell motion as a way to deepen merchant relationships after initial adoption.

Shopify Maintains a Disciplined Growth Posture

Finkelstein emphasized Shopify's role as commerce infrastructure across new discovery surfaces, merchant types and selling channels. Management’s strategic focus remained AI-enabled commerce, broader payments adoption and unified operations.

Hoffmeister paired that growth agenda with cost discipline, saying gross-margin pressure can be offset through operating-expense leverage. The call left management focused on scaling the platform without abandoning margin expansion.

SHOP's Zacks Rank and Style Score Signals

SHOP sports a Zacks Rank #1 (Strong Buy), indicating a favorable near-term earnings-estimate revision trend. Its Growth Score of A and Momentum Score of A are supportive for those styles, while the Value Score of F is weak. You can see the complete list of today’s Zacks #1 Rank stocks here.

The VGM Score of C shows that the combined value, growth and momentum profile is less favorable than the individual growth and momentum readings. The Zacks Rank can change as analysts revise estimates following the latest results.

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