Shopify Inc. (SHOP) reported significant growth in its payments ecosystem in Q1 2026, processing $67 billion in gross merchandise volume (GMV), a 41% year-over-year increase. Payments penetration rose to 67% of total GMV, up three percentage points from the previous year, highlighting a growing adoption of Shopify Payments and Shop Pay, which now operates in 39 countries.
Merchant Solutions revenues surged 39% year-over-year, outpacing Subscription Solutions’ growth of 21%, indicating a stronger focus on payment services. Additionally, Shop Pay processed $35 billion in GMV during the quarter, representing a 59% increase year over year, with international usage growing over 70%.
Despite these advancements, Shopify shares have declined 18.9% over the past three months, compared to the industry growth of 24.1%. The stock currently trades at a forward price-to-sales ratio of 8.34, slightly below the industry average of 8.64, while consensus earnings estimates for 2026 project a robust 53.9% increase year over year.
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