In a big win for Canadian tech, Shopify has taken back the top spot as the country’s most valuable company. With strong financial results in the second quarter of 2025, the e-commerce giant’s stock soared, pushing its market value to an impressive $275.7 billion. That leap puts it ahead of the Royal Bank of Canada, showing just how powerful Shopify has become—not just in Canada but globally.
What caused this massive jump? Let’s break it all down in simple terms.
Table of Contents
Earnings
Shopify’s share price jumped 22% on August 7 after its second-quarter results beat almost everyone’s expectations. While many companies are struggling with inflation, trade tensions, and rising interest rates, Shopify powered through.
Here’s a quick look at the numbers:
| Metric | Q2 2025 | Year-over-Year Change |
|---|---|---|
| Revenue | US$2.6 billion | Up 31% |
| Gross Profit | US$1.3 billion | Up 24% |
| Net Income | US$906 million | Up from US$171M |
| GMV | US$87.8 billion | Up 31% |
| MRR | US$185 million | Up 10% |
| Market Cap | C$275.7 billion | Highest in Canada |
| Stock Price Surge | +22% | August 7, 2025 |
Shopify’s financial engine is clearly running hot—and investors are loving it.
Drivers
So what fueled these results? Shopify didn’t just get lucky. It made smart moves, expanded globally, and leaned into innovation.
Strong U.S. Sales
Despite U.S. tariffs and the removal of the de minimis exemption (which taxed goods under US$800), Shopify’s U.S. business still grew. That’s because only 4% of Shopify’s merchandise is affected by this rule. In short, the company dodged a bullet and kept selling strong south of the border.
European Growth
Sales in Europe jumped 42% in Q2. Shopify has been pushing into international markets, and it’s clearly paying off. More global sales mean less dependence on any one market—smart strategy.
Better Business Tools
More merchants signed up for Shopify’s high-end services, like its premium plans, POS systems, and B2B tools. This shows that Shopify isn’t just helping small shops get online—it’s becoming a backbone for serious businesses.
Fresh Partnerships
Shopify keeps moving forward with smart tech partnerships:
- A shopping feature built with AI from OpenAI
- A stablecoin payment system through Coinbase
These moves aren’t just flashy—they’re future-proofing the company for digital commerce trends.
Legal
In a side win, Shopify also beat the CRA in court. The Canada Revenue Agency wanted Shopify to hand over data on Canadian sellers—probably to track taxes. But the Federal Court said no, siding with Shopify and its merchant base.
That win protects the privacy of thousands of small businesses that rely on the platform.
Outlook
So, what’s next?
Shopify expects Q3 2025 to be strong as well, with predicted revenue growth of around 25%. Analysts are raising their price targets and calling Shopify one of the most promising tech stocks in the market.
Here’s what some experts are saying:
- Ken Wong (Oppenheimer & Co.): Shopify isn’t seeing the usual tariff impacts. Confidence is growing.
- Tyler Radke (Citigroup): Shopify blew past any doubts with a super strong quarter.
- Richard Tse (National Bank): There’s still a lot of room for Shopify to grow. That’s why it remains a top pick.
Lessons
Shopify’s story isn’t just about numbers—it’s about resilience. While many companies are slowing down or struggling with international trade issues, Shopify is scaling up. The company’s ability to shift, adapt, and innovate in real time is what’s setting it apart.
And for younger investors or anyone watching the digital economy evolve, Shopify is a great case study in how tech, timing, and strategy can create a global powerhouse.
From powering local online stores to leading Canada’s stock market, Shopify is proving that Canadian innovation can compete—and win—on the world stage.