Shopify tumbles despite strong first quarter as Q2 guidance fails to impress

Shopify fell in premarket trading Tuesday after the e-commerce company’s strong Q1 results failed to offset concerns over its second-quarter outlook.

The stock was recently down 5.9% premarket.

Revenue for the first quarter rose 34% year on year to $3.17 billion, topping the $3.09 billion estimate compiled by Bloomberg, while gross merchandise volume — the total dollar value of goods sold through its platform — hit $100.7 billion, also above the roughly $98.8 billion analysts had expected.

But investors appeared to look past its Q1 beat, focusing instead on the company’s second-quarter outlook, which suggests slower growth and higher-than-expected operating expenses in the near term.

For Q2, Shopify forecast revenue to grow in the “high-twenties” percentage rate year on year, gross profit growth in the mid-20s, and operating expenses of 35% to 36% of revenue — compared with the 33% consensus estimate for full-year 2026, per Bloomberg.

Bloomberg Intelligence analyst Anurag Rana had previously warned that Q2 growth could slow on softer spending as fuel prices rise.