Shopify: Growth Acceleration (Rating Upgrade)

Shopify is benefiting from accelerating revenue growth, driven by robust e-Commerce trends and expanding AI-powered Merchant Solutions. SHOP's Q1'26 revenue grew 34% year-over-year to $3.2B, with Merchant Solutions contributing 76% of total revenues and GMV reaching $101B (+35% Y/Y). Free cash flow surged 31% Y/Y to $476M in Q1'26, positioning SHOP for over $2.6B in FCF for FY 2026.