Shopify Inc. SHOP is back to growing earnings at double digits as it adopts AI tools onto its platform. This Zacks Rank #1 (Strong Buy) is expected to grow revenue by 31.5% in 2026.
Shopify operates a platform that allows people to start, and grow, a business from anywhere. With powerful tools, including thousands of apps, Shopify merchants can be on the cutting edge of any marketplace.
It has millions of merchants in 175+ countries.
Analysts Are Bullish on Shopify Again
Shopify reports third quarter 2026 earnings on Nov 3, 2026. But the analysts are already getting bullish.
The Zacks Consensus for Q3 2026 has risen a penny to $0.45 from $0.44 in the last month. But the most accurate estimate, which is the most recent one, is looking for $0.49.
That is bullish to see the most accurate estimate higher than the consensus.
Additionally, analysts have been raising estimates for next year in the last week as well. The 2027 Zacks Consensus is looking for $2.38, up from $2.36 in the last 60 days. The most accurate estimate is looking for $2.41.
This is above the consensus and is bullish for next year.
Earnings are expected to rise 61.5% this year and another 25.9% in 2027.
Here’s what it looks like on the five-year Price and Consensus chart.
Image Source: Zacks Investment Research
Shopify is a Growth Story Again
Shopify reported second quarter results on Aug 5, 2026, and beat on the Zacks Consensus by $0.03. Earnings were $0.42 versus the consensus of $0.39.
Revenue grew 34% and free cash flow margins were 18%, up from 16% in the year ago quarter.
“This was a monster quarter: more than 30% growth in GMV AND revenue AND gross profit AND free cash flow,” said Harley Finkelstein, President of Shopify.
Shopify is Leaning into AI
In the second quarter, Shopify said there was a 3x increase in orders originating from AI searches year-over-year.
It also has a new agentic section on the admin window which allows merchants to see which AI channels are live and can track their real time performance.
Shares of Shopify Rally
Shopify was a pandemic darling but then the stock sold off in 2022 when the growth stocks took a hit as the FOMC raised interest rates.
It’s been a long 5 years but the shares have rallied over the last three months, easily beating the S&P 500.
Image Source: Zacks Investment Research
You aren’t buying Shopify for its valuation. It is still an expensive stock. It trades with a forward price-to-earnings (P/E) ratio of 89.5. A P/E over 30 is considered stretched. A P/E over 80 is expensive.
But for investors looking for a growth stock with a dose of AI on the side, Shopify should be on your short list.
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Shopify Inc. (SHOP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).