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

SPS Commerce, Inc. (NASDAQ:SPSC)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. 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, topping analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $195.46 million. During the same quarter in the previous year, the business earned $1.00 EPS. The business’s revenue was up 5.6% on a year-over-year basis. 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.

Key Stories Impacting 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.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SPSC. Rothschild & Co Redburn set a $60.00 price objective on SPS Commerce and gave the stock a “neutral” rating in a research report on Thursday, April 16th. Needham & Company LLC reaffirmed a “buy” rating on shares of SPS Commerce in a research report on Tuesday. Stifel Nicolaus set a $70.00 price target on SPS Commerce and gave the stock a “hold” rating in a report on Friday. Zacks Research upgraded SPS Commerce from a “strong sell” rating to a “hold” rating in a report on Monday, July 20th. Finally, Citigroup reissued a “buy” rating and issued a $82.00 price objective (up from $76.00) on shares of SPS Commerce in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $72.40.

Institutional Investors Weigh In On SPS Commerce

Several hedge funds have recently made changes to their positions in SPSC. UBS Group AG grew its position in SPS Commerce by 182.3% during the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker’s stock worth $115,447,000 after buying an additional 836,407 shares in the last quarter. Norges Bank bought a new position in SPS Commerce during the fourth quarter valued at about $49,883,000. Irenic Capital Management LP acquired a new position in SPS Commerce in the 4th quarter valued at approximately $40,293,000. Walleye Capital LLC raised its holdings in SPS Commerce by 1,749.1% in the 1st quarter. Walleye Capital LLC now owns 457,635 shares of the software maker’s stock valued at $25,477,000 after acquiring an additional 432,886 shares in the last quarter. Finally, Disciplined Growth Investors Inc. MN raised its holdings in SPS Commerce by 86.4% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after acquiring an additional 367,346 shares in the last quarter. Institutional investors own 98.96% of the company’s stock.

SPS Commerce Stock Performance

The stock has a 50-day simple moving average of $58.53 and a 200 day simple moving average of $62.27. The company has a market cap of $2.69 billion, a P/E ratio of 30.65 and a beta of 0.56.

About SPS Commerce

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.