Shopify Inc. (SHOP) shares are currently trading at a forward price/sales (P/S) ratio of 11.24x, significantly higher than the average of the Zacks Computer and Technology sector at 6.55x. Year-to-date (YTD), Shopify’s stock has dropped 4.3%, while the broader sector has risen 18.2%. In comparison, key competitors such as Amazon (AMZN), Wix.com (WIX), and Commerce.com (CMRC) have P/S ratios of 3.2, 1.66, and 0.5, respectively.
In Q2 2026, Shopify reported revenues of $3.58 billion, a 34% year-over-year increase, with gross merchandise volume (GMV) rising 32% to $115.6 billion. However, the company anticipates Q3 2026 revenues will grow in the low-30% range, with gross profit growth expected in the mid-to-high 20% range. Transaction and loan losses surged to $141 million, up from $80 million a year ago. Shopify Capital loans and advances have increased to $2.18 billion, escalating risk on its balance sheet.
Despite these challenges, Shopify is pushing for growth through AI initiatives and expanding its merchant solutions. Shopify Payments penetration reached 68% of global GMV as of Q2 2026. The Zacks Consensus Estimate projects Shopify’s earnings at 44 cents per share for Q3 2026, reflecting a year-over-year rise of 29.41% and a forecasted annual growth of 61.54% for 2026 earnings, now pegged at $1.89 per share.
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