SPS Commerce (NASDAQ:SPSC) Issues Quarterly Earnings Results, Beats Expectations By $0.13 EPS

SPS Commerce (NASDAQ:SPSC) posted its quarterly earnings data on Thursday. The software maker reported $1.10 EPS for the quarter, beating the consensus estimate of $0.97 by $0.13, FiscalAI reports. The business had revenue of $192.12 million for the quarter, compared to analysts’ expectations of $192.51 million. SPS Commerce had a net margin of 11.92% and a return on equity of 12.44%. The firm’s revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.00 EPS. SPS Commerce updated its FY 2026 guidance to 4.730-4.760 EPS and its Q2 2026 guidance to 1.060-1.090 EPS.

Here are the key takeaways from SPS Commerce’s conference call:

• Q1 revenue grew 6% to $192.1M with recurring revenue up 7%; full‑year revenue guidance of $796–$802M (~6% growth) and Adjusted EBITDA guidance imply mid‑teens EBITDA growth, and management repurchased $47.1M of stock in Q1 (cash $154M).
• Amazon 3P revenue‑recovery remains a headwind due to Amazon policy changes; SPS is introducing a $19.99/month platform fee for small 3P take‑rate customers that could churn up to ~4,000 suppliers in 2026, and the Amazon segment is likely to trough mid‑to‑late 2026 with recovery not expected until 2027.
• The MAX AI agent is gaining traction (400+ beta customers) and is already delivering measurable ROI (e.g., Siete Foods projects MAX could protect up to 8% of revenue from stockouts), while also speeding onboarding and product development; SPS plans to monetize MAX via usage‑based upsells.
• Cross‑sell momentum is building—fulfillment customers are adopting revenue recovery and vice versa—and management says revenue recovery excluding Amazon and the business without revenue recovery are growing in line with or faster than the company average, supporting the long‑term high‑single‑digit growth thesis.

SPS Commerce Stock Up 5.0%

Shares of SPSC traded up $2.80 during midday trading on Friday, reaching $58.92. 941,692 shares of the stock were exchanged, compared to its average volume of 513,257. SPS Commerce has a twelve month low of $50.55 and a twelve month high of $153.16. The company has a market cap of $2.18 billion, a P/E ratio of 24.05 and a beta of 0.58. The stock’s 50 day simple moving average is $57.17 and its 200 day simple moving average is $77.21.

SPS Commerce News Roundup

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

• Positive Sentiment: Company Q1 results showed revenue and recurring revenue growth (~6% and ~7% yoy) and an adjusted EPS beat (reported $1.10 vs. consensus ~$0.97); management emphasized subscription strength. SPS Commerce Reports First Quarter 2026 Financial Results
• Positive Sentiment: Company raised EPS guidance: FY2026 EPS guide of $4.73–4.76 and Q2 EPS guide of $1.060–1.090 both sit above consensus, supporting forward earnings expectations. Earnings Release / Guidance Details
• Neutral Sentiment: Needham trimmed its price target to $75 (from $110) but kept a Buy rating, highlighting continued upside vs. the current price—this is supportive but reflects tempered expectations. Needham Lowers Price Target to $75
• Neutral Sentiment: Analyst coverage remains mixed: William Blair reiterated a Hold, and several write-ups (earnings transcript and presentation) provide detail for investors to parse adjusted vs. GAAP results. Q1 2026 Earnings Call Transcript
• Negative Sentiment: DA Davidson cut its price target to $55 and moved to Neutral, signaling near-term downside risk and adding selling pressure for more cautious investors. DA Davidson Lowers PT to $55
• Negative Sentiment: Some third-party reports flagged weaker GAAP operating profit and a below-expectations revenue/EPS reconciliation (Quiver noted a GAAP EPS shortfall and declines in operating profit), plus recent insider selling—items that could weigh on sentiment. Quiver: Stock Reaction & GAAP Metrics
• Negative Sentiment: Revenue guidance ranges were slightly below some revenue consensus points (Q2 and FY revenue bands came in marginally under certain street estimates), which could cap upside despite stronger EPS guides. MarketBeat: Guidance and Results Summary

Analyst Ratings Changes

SPSC has been the topic of several recent research reports. Stifel Nicolaus set a $60.00 price target on shares of SPS Commerce in a research note on Friday. Craig Hallum lowered shares of SPS Commerce from a “buy” rating to a “hold” rating and set a $70.00 price objective on the stock. in a research note on Friday, February 13th. Rothschild & Co Redburn set a $60.00 price target on shares of SPS Commerce and gave the company a “neutral” rating in a research note on Thursday, April 16th. Weiss Ratings raised shares of SPS Commerce from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday. Finally, Morgan Stanley set a $70.00 price objective on shares of SPS Commerce in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, SPS Commerce has an average rating of “Hold” and an average price target of $77.18.

Insider Buying and Selling at SPS Commerce

In related news, CFO Kimberly K. Nelson sold 6,300 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $58.66, for a total value of $369,558.00. Following the transaction, the chief financial officer directly owned 145,452 shares in the company, valued at approximately $8,532,214.32. This represents a 4.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Marty M. Reaume sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $57.90, for a total transaction of $57,900.00. Following the transaction, the director directly owned 9,158 shares in the company, valued at approximately $530,248.20. This represents a 9.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 24,102 shares of company stock valued at $1,425,328. 0.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SPS Commerce

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Advisors Asset Management Inc. increased its stake in SPS Commerce by 39.9% during the 1st quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker’s stock worth $52,000 after acquiring an additional 112 shares during the period. AQR Capital Management LLC lifted its position in shares of SPS Commerce by 2.0% during the 1st quarter. AQR Capital Management LLC now owns 14,134 shares of the software maker’s stock valued at $1,876,000 after acquiring an additional 275 shares during the period. NewEdge Advisors LLC increased its position in shares of SPS Commerce by 545.7% in the first 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 period. EverSource Wealth Advisors LLC increased its position in shares of SPS Commerce by 137.7% in the second quarter. EverSource Wealth Advisors LLC now owns 649 shares of the software maker’s stock worth $88,000 after purchasing an additional 376 shares during the period. Finally, First Trust Advisors LP raised its stake in SPS Commerce by 83.2% in the second quarter. First Trust Advisors LP now owns 10,132 shares of the software maker’s stock valued at $1,379,000 after purchasing an additional 4,602 shares in the last quarter. 98.96% of the stock is currently owned by institutional investors and hedge funds.

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.