OTTAWA – Shopify reported a 31% increase in second-quarter revenue, driven by steady merchant growth and resilient consumer demand, despite U.S. tariffs creating uncertainty across the retail sector.
The Canadian e-commerce platform said sellers on its marketplace are adapting well to shifting trade policies, with both large merchants (over $50 million in annual GMV) and smaller businesses showing strong performance through early August.
"We haven't seen any drops in U.S. demand, whether inbound, outbound or local. In fact, the U.S. accelerated in the second-quarter," CFO Jeff Hoffmeister said on a post-earnings call. He added that Shopify saw growth in all merchant segments.
For the third quarter, Shopify expects revenue to grow in the mid- to high-20% range, above analyst projections of 21.5%, according to LSEG data. The company highlighted its investments in AI-driven tools, including website design, image generation, and sales data integration, as key drivers of merchant engagement and sales efficiency.
While tariffs introduced under President Donald Trump remain a risk factor for retailers, Shopify said its merchants have largely absorbed the impact, with many raising prices to offset higher costs.
“The tariff situation is still playing out, there's still disruption that could happen, but I think we have a little bit more clarity into how consumers are going to react, and frankly, the lack of impact that it's going to have on Shopify,” Third Bridge analyst Charlie Miner said to Reuters.
The results position Shopify as a bright spot in e-commerce, following Amazon’s similarly strong retail performance last week.
