Shopify Inc. (NYSE:SHOP) (TSX:SHOP) delivered strong fourth-quarter results, highlighting accelerating revenue growth, solid profitability, and a new share repurchase program. The latest Shopify Q4 earnings report underscores the company’s continued momentum as it heads into 2026 from a position of financial strength.

Revenue Surges 31% Year Over Year

A key highlight from the Shopify Q4 earnings release was robust top-line expansion. Revenue for the quarter ended Dec. 31 totaled US$3.67 billion, marking a 31% increase compared to US$2.81 billion in the same period a year earlier.

The growth rate reflects strength across merchant sizes, regions, and sales channels. Shopify has continued to benefit from rising e-commerce adoption, new merchant additions, and greater penetration of its payments and fulfillment tools.

Merchant solutions revenue reached US$2.90 billion, up from US$2.15 billion a year earlier. This segment includes payment processing, shipping, and other transaction-based services tied directly to gross merchandise volume. As merchants scale their businesses, Shopify captures a growing share of transaction revenue.

Subscription solutions revenue also increased, climbing to US$777 million from US$666 million a year ago. This segment consists mainly of recurring subscription fees from merchants using Shopify’s platform. While subscription growth was more moderate than merchant solutions, it still reflects stable demand for Shopify’s core services.

Profitability Remains Strong

In addition to impressive revenue growth, Shopify Q4 earnings showed solid profitability. The company reported a fourth-quarter profit of US$743 million, or 57 cents US per diluted share.

This compares with a profit of US$1.29 billion, or 99 cents US per diluted share, in the final quarter of 2024. While net income declined year over year, the prior-year quarter included unusually strong gains, making comparisons less straightforward.

Importantly, Shopify continues to demonstrate disciplined cost management and healthy cash generation. Chief Financial Officer Jeff Hoffmeister emphasized that the company closed the year with strong top-line growth while maintaining financial discipline.

The ability to grow revenue at a low-thirties percentage rate while staying profitable highlights the operating leverage embedded in Shopify’s model. As revenue scales, fixed costs are spread over a larger base, supporting margins over time.

2026 Outlook Points to Continued Growth

Looking ahead, management signaled confidence in ongoing momentum. In its forward guidance, Shopify expects revenue in the first quarter of 2026 to grow at a low-thirties percentage rate year over year, similar to the pace seen in the fourth quarter of 2025.

That outlook suggests sustained demand across merchant cohorts and geographies. It also indicates that Shopify is not seeing a meaningful slowdown in e-commerce activity entering the new year.

According to Hoffmeister, the company ended 2025 with strength across all merchant sizes, regions, and channels. This broad-based performance provides a solid foundation for 2026.

For investors, consistent growth at or above 30% is notable, particularly for a company of Shopify’s size. Maintaining that trajectory could support further earnings expansion and improved shareholder returns over time.

Share Repurchase Program Announced

Alongside its earnings results, Shopify announced that its board of directors authorized a share repurchase program of up to US$2 billion.

The move signals management’s confidence in the company’s financial position and long-term outlook. By repurchasing shares, Shopify reduces the total number of outstanding shares. This spreads profits over a smaller equity base, increasing earnings per share and potentially boosting return on equity.

Hoffmeister stated that the company is launching the buyback program from a position of financial and operating strength. He also reaffirmed Shopify’s capital allocation priorities, which focus first on investing in growth while maintaining flexibility and discipline.

Share repurchases can be particularly attractive when a company generates strong free cash flow and believes its stock offers compelling long-term value. The US$2 billion authorization provides Shopify with additional flexibility in managing its capital structure.

What Shopify Q4 Earnings Mean for Investors

The latest Shopify Q4 earnings report paints a picture of a company executing effectively on both growth and profitability. Revenue growth of 31% year over year, combined with continued net income generation, reflects a balanced strategy.

Merchant solutions remain the primary engine of expansion, while subscription revenue provides a stable recurring base. The addition of a sizable share repurchase program further enhances shareholder value initiatives.

Investors will likely focus on whether Shopify can sustain its low-thirties revenue growth rate through 2026 and beyond. If it can continue expanding margins and driving earnings growth alongside revenue, the stock could remain attractive in the competitive e-commerce and technology landscape.

For now, Shopify Inc. (NYSE:SHOP) (TSX:SHOP) appears well positioned heading into 2026, backed by strong top-line momentum, disciplined financial management, and a clear commitment to long-term value creation.