Tariffs do not seem to be slowing down Shopify Inc. The Ottawa-based e-commerce software provider reported a net profit of US$906 million for the latest quarter as revenue climbed by 31 percent. Those results come even as an international trade dispute continues to threaten the broader ecosystem of merchants and suppliers that feed into Shopify’s platform — a situation that could create deeper disruption if the dispute escalates further.
Still, Shopify’s finance team says merchants have so far absorbed the pressures without dramatically changing their behavior. “The business remains in very good shape,” chief financial officer Jeff Hoffmeister told analysts on a quarterly call, noting that merchants have remained resilient through shifting trade and tariff dynamics.
Shopify stock jumps 22% after earnings release
Investors responded positively. Shopify shares rose sharply — up about 22 percent in mid-morning trading on the Toronto Stock Exchange to $213.11 — reflecting market approval of the company’s second-quarter performance. The quarter’s profit of US$906 million compares with US$171 million a year earlier.
On a per-share basis, Shopify reported earnings of US$0.69 per diluted share attributable to shareholders, versus US$0.13 in the prior year. Excluding the impact of equity investments, net income for the quarter ended June 30 was US$338 million, up from US$291 million the previous year. Quarterly revenue totaled US$2.68 billion, an increase from US$2.05 billion a year earlier.
These results covered a period in which trade relations between the U.S. and several trading partners remained strained and new tariffs were proposed and enacted in some cases. Tariffs can push up operating costs for businesses that manufacture or ship physical goods, potentially squeezing margins for retailers and brands that sell through Shopify’s tools.
Despite that headwind, Hoffmeister said Shopify has not observed “any meaningful changes” in cross-border activity or in buyer behavior on its platform. Shoppers did not appear to rush purchases to avoid anticipated tariff increases, and overall gross merchandise volume (GMV) trends have remained stable.
Retailers respond to shifting U.S. trade policy
Merchants are still taking preemptive steps. Many sellers on the platform have increased prices to guard against higher import costs and uncertainty. Those price adjustments can help mitigate the impact of policy changes such as the end or modification of de minimis exemptions, which affect duties on low-value shipments.
De minimis rules allow certain shipments below a specified value to enter a country without customs duties. Recent alterations to how these rules apply — including a removal of the exemption for China followed by policy adjustments affecting other countries — have prompted merchants to reassess pricing and logistics. Hoffmeister said only about 4 percent of Shopify’s global GMV is currently shipped under de minimis exemptions, and the company has not seen material changes in GMV from merchants previously relying on those rules.
Shopify emphasized that it will continue to monitor cross-border shipping trends and support merchants as trade policy evolves. That approach prioritizes stability for sellers and continuity for consumers who buy goods through Shopify-powered storefronts.
New merchant wins include Starbucks and Canada Goose
Even amid trade uncertainty, Shopify continues to attract major brand customers. In the latest quarter the company onboarded notable merchants including Starbucks, snowboard retailer Burton, and luxury outerwear maker Canada Goose. Landing high-profile clients reinforces Shopify’s appeal as a platform that can serve both small businesses and large, established brands.
Shopify president Harley Finkelstein noted that discussions with Canada Goose’s leadership had been ongoing for some time and that the agreement officially closed on Canada Day, making the timing particularly memorable. High-profile customer wins can be a signal of confidence in Shopify’s product suite and ability to support complex retail operations, including omnichannel and international fulfillment.
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