Shopify expected to report strong Q1 earnings with revenue and earnings growth

From Nasdaq: 2025-05-06 14:29:00

Shopify is set to report its first-quarter 2025 results on May 8. The company expects revenues to grow at a mid-twenties percentage rate. The consensus estimate for revenues is $2.33 billion, with earnings expected at 26 cents per share, indicating 30% growth. Shopify’s shares have outperformed the sector and industry YTD.

In the first quarter, Shopify processed a Gross Merchandise Volume of $1 trillion, with GMV increasing 25.7% YoY. The Zacks Consensus Estimate for GMV in Q1 is $75 billion, showing 23% growth. Growing usage of Shop Pay and new launches are expected to drive growth in the to-be-reported quarter.

Shopify’s long-term prospects look strong due to its expanding merchant base and partner network. International growth outperforms North America, with partnerships with major companies like Amazon, Roblox, YouTube, and PayPal. However, the stock is trading at a premium, with a forward Price/Sales ratio of 11.1X compared to industry peers.

Zacks Research Chief names Shopify as a top stock with the potential to double. Shopify is benefiting from a growing merchant base and international expansion. Challenges from macroeconomic conditions and tariffs may impact near-term prospects, but benefits from partnerships and enterprise growth are expected later in 2025. Shopify currently has a Zacks Rank #3 (Hold).



Read more at Nasdaq: Should You Buy, Sell or Hold Shopify Stock Before Q1 Earnings?