Shopify Rated Buy with $150 Target, Guides 30% Q1 Revenue Growth
Truist Securities raised Shopify’s rating to Buy and lifted its price target to $150 from $110, after Q4 revenue rose 31% to $3.67B. Goldman Sachs included Shopify among its top growth picks and the company guided for 30% revenue growth and 27% gross profit expansion in Q1 2026.
1. Analyst Upgrade and Top Growth Pick
Truist Securities upgraded Shopify from Hold to Buy, raising its price target to $150 from $110. Goldman Sachs also listed the company among its top 12 growth stock picks.
2. Q4 2025 Financial Performance
Shopify reported record Q4 revenue of $3.67 billion, a 31% increase year-over-year, driven by strong merchant adoption of payments and subscription services. Adjusted EPS was $0.48, slightly below estimates due to increased AI development, marketing, and international expansion costs.
3. Strategic Growth Drivers
The company outlined five long-term growth areas: international market expansion, payments business development, large enterprise customer adoption, B2B segment growth, and emerging agentic commerce opportunities.
4. Q1 2026 Outlook
Shopify guided for over 30% revenue growth and 27% gross profit expansion in Q1 2026, well above prior market expectations, reflecting continued strength across its platform services.