Shopify approves $3 billion buyback to reassure investors

Shopify moved to calm investors with a fresh $3 billion share repurchase authorization, lifting the Canadian e-commerce company’s total buyback capacity to $5 billion, or about C$6.9 billion. The board-approved expansion came as the market questioned whether artificial intelligence could erode software pricing power and digital commerce margins, even though Shopify continued to post strong operating results and cash generation.

The timing was pointed. Shopify’s shares had fallen more than 27% in 2026 before the announcement, part of a broader selloff across software names as investors weighed the risk that AI could weaken product differentiation and shift customer spending patterns. The company also faced a tougher demand backdrop tied to the U.S. and Israeli war with Iran, which had raised costs and threatened business spending. After the buyback news, Shopify’s U.S.-listed shares rose about 1.5% in extended trading.

Management framed the repurchase as a vote of confidence in the business, not a retreat from growth. Jeff Hoffmeister said the move reflected Shopify’s ability to keep investing in the platform while returning capital to shareholders. He said, “Today’s announcement shows our confidence in the durability of our business and the opportunity ahead.” The company said its strong operating cash flow and balance sheet allowed it to prioritize merchant success and still reward investors during volatile markets.

Shopify had already been using its existing repurchase plan. As of June 1, it had bought back about $1.45 billion under the prior authorization, showing the company was not waiting for a steadier market before acting. Purchases under the expanded program are scheduled to begin June 8, using pre-arranged algorithmic trading instructions, with no set quarterly or annual minimums.

The buyback also comes against a backdrop of solid growth. On May 5, Shopify said first-quarter 2026 revenue rose 34% from a year earlier, free cash flow margin was 15%, and gross merchandise volume topped $100 billion. On February 11, it reported fourth-quarter 2025 revenue growth of 31% and a 19% free cash flow margin, then launched an initial $2 billion repurchase program. Taken together, the numbers suggest Shopify is trying to make a two-part case to the market: growth remains healthy, and excess cash is now large enough to support both expansion and heavier capital returns.