Shopify (SHOP) Q2 Earnings and Revenues Surpass Estimates

Group 1: Earnings Performance - Shopify reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.26 per share a year ago, representing an earnings surprise of +25.00% [1] - The company posted revenues of $2.68 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.47%, compared to year-ago revenues of $2.05 billion [2] - Over the last four quarters, Shopify has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Shopify shares have increased approximately 19.4% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.35 on $2.63 billion in revenues, and $1.40 on $10.86 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Internet - Services industry, to which Shopify belongs, is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The favorable estimate revisions trend ahead of the earnings release has resulted in a Zacks Rank 1 (Strong Buy) for Shopify, suggesting expected outperformance in the near future [6]