Shopify shares drop 13.5% after Q1 loss despite strong revenue growth and cautious guidance.

Shopify reported strong first-quarter 2026 results with revenue up 34% to $3.17 billion and adjusted earnings per share beating estimates at $0.36. However, the company posted a significant GAAP net loss of $581 million, which caused shares to fall 13.5%. Gross merchandise volume exceeded forecasts at $100.74 billion, and free cash flow improved to $476 million. Looking ahead, Shopify expects high-twenties percentage revenue growth in Q2 with stable free cash flow margins, but cautious guidance weighed on investor sentiment.