SPS Commerce (NASDAQ:SPSC) Shares Gap Up Following Earnings Beat

Key Points

• SPS Commerce shares jumped after a quarterly earnings beat, opening at $71.70 versus the prior close of $65.83 and later trading near $75.06. Adjusted EPS was $1.27, ahead of the $1.08 consensus, while revenue rose 5.6% year over year to $197.8 million.
• Profitability and full-year expectations improved: adjusted EBITDA increased 19% to $66.6 million, and the company forecast FY 2026 adjusted EPS of $4.84–$4.93, above the $4.46 analyst estimate.
• Near-term revenue guidance was cautious. Q3 revenue guidance of $196.3–$198.3 million trailed the $202.4 million consensus, and the divestiture of the 3P Revenue Recovery business is expected to reduce second-half revenue by about $10.5 million; analysts maintain an overall “Hold” rating with a $72.40 average price target.

SPS Commerce, Inc. (NASDAQ:SPSC - Get Free Report) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $65.83, but opened at $71.70. SPS Commerce shares last traded at $75.0640, with a volume of 189,668 shares trading hands.

The software maker reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.08 by $0.19. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The firm had revenue of $197.81 million for the quarter, compared to analyst estimates of $195.46 million. During the same quarter in the prior year, the business earned $1.00 EPS. The company's revenue for the quarter was up 5.6% compared to the same quarter last year. SPS Commerce has set its Q3 2026 guidance at 1.200-1.230 EPS and its FY 2026 guidance at 4.840-4.930 EPS.

Trending Headlines about SPS Commerce

Here are the key news stories impacting SPS Commerce this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Adjusted EPS was $1.27 versus the $1.08 consensus estimate, while revenue rose 5.6% year over year to approximately $197.8 million, ahead of the $195.5 million consensus. SPS Commerce Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability trends were strong on an adjusted basis. Adjusted EBITDA increased 19% to $66.6 million, and second-quarter revenue and adjusted EBITDA exceeded the high end of management’s guidance range. SPS Commerce Reports Strong Second Quarter 2026 Financial Results
• Positive Sentiment: Full-year EPS guidance was raised relative to consensus. SPS Commerce forecast FY 2026 adjusted EPS of $4.84–$4.93, above the $4.46 analyst estimate. The company also repurchased $51.2 million of stock during the quarter.
• Neutral Sentiment: The completed divestiture changes the growth profile. The sale of the 3P Revenue Recovery business is expected to reduce second-half 2026 revenue by about $10.5 million but remain neutral to adjusted EBITDA. Management’s full-year revenue forecast of $788.4–$793.4 million implies 5%–6% growth, but is below the $797.6 million consensus.
• Negative Sentiment: Near-term revenue guidance was cautious. Q3 revenue guidance of $196.3–$198.3 million fell short of the $202.4 million analyst estimate, despite EPS guidance of $1.20–$1.23 exceeding the $1.18 consensus.
• Negative Sentiment: GAAP net income declined. Net income fell to $6.9 million, or $0.19 per diluted share, from $19.7 million, or $0.52, a year earlier, even though adjusted EBITDA improved.

Analysts Set New Price Targets

Several brokerages recently issued reports on SPSC. Citigroup reiterated a "buy" rating and set a $82.00 price objective (up from $76.00) on shares of SPS Commerce in a report on Tuesday, July 21st. Zacks Research raised SPS Commerce from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of SPS Commerce in a research report on Friday. Stifel Nicolaus set a $70.00 price target on SPS Commerce and gave the stock a "hold" rating in a research note on Friday. Finally, Rothschild & Co Redburn set a $60.00 price target on SPS Commerce and gave the company a "neutral" rating in a report on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, SPS Commerce currently has an average rating of "Hold" and an average price target of $72.40.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SPSC. NewEdge Advisors LLC lifted its holdings in SPS Commerce by 545.7% in the 1st quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock worth $30,000 after purchasing an additional 191 shares during the last quarter. Advisory Services Network LLC acquired a new position in SPS Commerce during the third quarter valued at approximately $32,000. Global Retirement Partners LLC grew its holdings in SPS Commerce by 2,130.0% during the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker's stock valued at $40,000 after purchasing an additional 426 shares during the last quarter. Summit Securities Group LLC bought a new position in shares of SPS Commerce in the fourth quarter valued at approximately $45,000. Finally, Leonteq Securities AG bought a new position in shares of SPS Commerce in the fourth quarter valued at approximately $52,000. Institutional investors and hedge funds own 98.96% of the company's stock.

SPS Commerce Price Performance

The stock's 50 day moving average price is $58.53 and its two-hundred day moving average price is $62.27. The firm has a market capitalization of $2.69 billion, a price-to-earnings ratio of 30.65 and a beta of 0.56.

SPS Commerce Company Profile

SPS Commerce, Inc is a leading provider of cloud-based supply chain management solutions that enable seamless collaboration between retailers, suppliers and logistics providers. Through its robust network, SPS Commerce connects trading partners with electronic data interchange (EDI) capabilities, helping businesses automate order processing, inventory management and fulfillment workflows. The company's platform ensures data accuracy, accelerates order-to-cash cycles and reduces manual intervention, supporting a wide range of industries including retail, grocery, consumer goods and automotive.

The company offers a suite of services encompassing EDI, retail-ready compliance, order management and data analytics.

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