May 8, 2025 — Canadian e-commerce powerhouse Shopify Inc. is forecasting revenue growth that surpasses Wall Street expectations for the second quarter, highlighting continued momentum in attracting merchants to its platform. However, concerns around profitability weighed on investor sentiment, with shares dipping over 6% in premarket trading.
The Ottawa-based company anticipates mid-20% revenue growth in the current quarter, outpacing analysts’ consensus of 22.4%, according to LSEG data. Shopify’s optimism comes as a rare bright spot amid widespread corporate uncertainty linked to global trade instability and renewed U.S. tariff measures.
Despite the positive sales outlook, Shopify cautioned that its gross profit dollars will likely rise at a high-teen percentage rate, slightly below analyst forecasts of approximately 20.2%. This tempered profit guidance triggered market hesitation, even as the company posted solid earnings for the previous quarter.
For Q1, Shopify reported $2.36 billion in revenue, edging past analysts’ average estimate of $2.33 billion. The company’s ongoing success contrasts with the broader trend of adjusted or downgraded forecasts across the retail and tech sectors, as businesses brace for economic volatility.
Shopify’s closest rival, Amazon, also recently exceeded revenue expectations for the upcoming quarter, suggesting steady consumer demand despite macroeconomic headwinds.
As Shopify advances its global growth and enhances platform capabilities, investor focus remains fixed on how the company will balance revenue expansion with sustainable profit margins amid shifting trade dynamics and competitive pressures.
