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Detailed Earnings Analysis:

Shopify SHOP 0.00%↑ .

Earnings Snapshot:

AMD AMD 0.00%↑ .

↗️$3,583.0M rev (+33.7% YoY, +13.0% QoQ) beat est by 4.2%

↘️GM* (47.7%, -0.9 PPs YoY)🟡

➡️Operating Margin* (17.4%, +1.6 PPs YoY)

➡️FCF Margin (18.3%, +2.5 PPs YoY)

↗️Net Margin (41.9%, +8.1 PPs YoY)

↗️EPS* $0.42 beat est by 5.0%

*non-GAAP

Segment Revenue

➡️Subscription solutions $802M rev (+22.3% YoY, 79.7% Gross Margin)🟡

↗️Merchant solutions $2,781M rev (+37.4% YoY, 38.4% Gross Margin)

Key Metrics

➡️GMV $115.57B (+31.6% YoY)🟡

↗️GPV $78.59B (+39.8% YoY, 68.0% of GMV)

➡️MRR 221B (+19.5% YoY)🟡

➡️Attach Rate 3.1% (+0 BPs YoY)

Operating expenses

↘️S&M*/Revenue 13.6% (-1.4 PPs YoY)

↘️R&D*/Revenue 9.8% (-1.7 PPs YoY)

↘️G&A*/Revenue 3.0% (-0.7 PPs YoY)

Dilution

↘️SBC/rev 4%, -0.6 PPs QoQ

↘️Basic shares down -0.2% YoY, -0.8 PPs QoQ🟢

↘️Diluted shares down -0.8% YoY, -1.5 PPs QoQ🟢

Guidance

↗️Q3’26 $3,700.0 - $3,780.0M guide (+31.5% YoY) beat est by 3.8%

🟢Positive

Revenue grew 33.7% YoY to $3.58 billion, accelerated from Q1, and beat estimates by 4.2%.
Q3 guidance 31-34% YoY growth, beat consensus by 3.8%.
Merchant Solutions revenue +37.4% YoY to $2.78 billion, faster than 31.6% GMV growth, showing stronger monetization through Payments, financial services, and partner products.
Shopify Payments penetration reached 68.0% of GMV, GPV +39.8% to $78.59 billion.
Operating margin +1.6 PPs to 17.4%, while free cash flow margin improved 2.5 percentage points to 18.3%.
Shop Pay GMV grew +53% YoY and surpassed $400 billion. Shop app native GMV increased +70% YoY.
Sidekick adoption accelerated. Daily active merchants increased 3.6x, daily sessions rose 4.8x, and custom apps reached 36,000, up from 12,000 in Q1.
AI-driven traffic and orders both increased 3x YoY. AI search conversion was nearly 80% higher than traditional organic search.
B2B GMV rose +76% YoY, international GMV increased +37%, and offline POS GMV rose +32%.
Merchant retention strong at 92% for merchants reaching $1M+ in annual GMV and 97% for merchants $10M+.
GMV rose +31.6% YoY to $115.57 billion, maintaining growth near 30% for a fifth consecutive quarter.
Basic shares decreased -0.2% YoY, while diluted shares -0.8% YoY.

🟡Neutral

Subscription Solutions revenue rose +22.3% YoY to $802 million, below Merchant Solutions growth but supported by Standard and Plus subscriptions, and variable platform fees.
MRR increased +19.5% YoY, with growth across Plus, and POS. Shopify Plus represented 34% of total MRR.
Subscription gross margin high at 79.7%, despite rising Sidekick usage and AI costs.
Agentic commerce remains small relative to total GMV, but new buyer metrics remain strong.
Advertising could become a opportunity, supported by buyer identity and transaction data, but Shopify does not disclose separate revenue.

🔴Negative

Gross margin declined 0.9 percentage points YoY to 47.7% as lower-margin Merchant Solutions grew faster than Subscription Solutions.
Merchant Solutions gross margin was 38.4%, materially below Subscription Solutions margin of 79.7%.
Transaction and loan losses reached 3.9% of revenue, with Shopify Capital driving most of the increase.

SHOP delivered strong Q2. Revenue growth accelerated to +33.7% YoY, beat analyst estimates by 4.2%. Q3 guidance came in significantly above expectations, beat by 3.8%. If Shopify beats its own guidance similar, revenue growth could accelerate to +38% YoY. I remain optimistic about the monetization of agentic commerce, which could become growth driver for SHOP.

Merchant Solutions revenue grew +37.4% YoY, faster than Subscription Solutions revenue growth of +22.3%, puts pressure on consolidated gross margin because Merchant Solutions is a lower-margin segment, with 38.4% gross margin.

At the same time, a higher Merchant Solutions share strengthens Shopify’s competitive position by expanding its network effects and increasing switching costs. Merchant Solutions revenue growing faster than GMV growth of +31.6% shows Shopify is monetizing merchants more effectively through additional services such as Shop Pay. Shop Pay GMV growth strong +53% YoY.

Merchant retention at high level. Merchants with $1M+ in annual GMV had a 92% retention rate, and 97% for merchants with $10M+. MRR growth also accelerated to +19.5% YoY.

Agentic commerce still represents a small share of Shopify’s business, but growth is strong, AI-driven traffic and orders both increased 3x YoY.

Sidekick adoption is progressing well. Sidekick is Shopify’s AI assistant for merchants. Daily active merchants increased 3.6x, while daily sessions rose 4.8x. Subscription Solutions gross margin high at 79.7%, despite Sidekick usage creating token and inference costs for Shopify.

Operating margin increased to 17.39%, and FCF margin rose to 18.25%.

Shopify also actively repurchased shares during Q2, weighted-average basic shares outstanding declined -0.2% YoY.

AMD revenue growth accelerated to +50.1% YoY, up from +37.8% in Q1.

Main driver is Data Center revenue, growing +107% YoY in Q2. Data Center operating margin rose to 31%. EPYC sales grew +70%, Instinct accelerator revenue doubled, and both cloud and enterprise server revenue increased +70% in Q2.

Management expects the Data Center segment to double in 2027, driven by Helios and MI450 ramp, and large deals with Microsoft, Anthropic, Meta, and OpenAI.

But, why stock fall -8.25% after such strong results?

AMD trades at high multiples: 18.5x EV/Sales and 63.4x Forward P/E, high growth expectations are already priced.

Q3 guidance $12.7B–$13.3B, above analyst est of $12.5B - small beat.

Q2 adj EPS $1.66, slightly above analyst est $1.62. Capex reached $808M, significantly above est $298M, which will continue pressuring EPS growth.

Helios shipments are expected to begin in Q3, and ramp is expected only in Q4 or Q1 2027.

Shopify Earnings & AMD Q2 2026 Snapshot

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