SPS Commerce (NASDAQ:SPSC) Issues Quarterly Earnings Results, Beats Estimates By $0.19 EPS

SPS Commerce (NASDAQ:SPSC) announced its quarterly earnings data on Thursday. The software maker reported $1.27 earnings per share for the quarter, beating analysts’ consensus estimates of $1.08 by $0.19, FiscalAI reports. The company had revenue of $197.81 million during the quarter, compared to analyst estimates of $195.46 million. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The firm’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter last year, the business posted $1.00 EPS. SPS Commerce updated its Q3 2026 guidance to 1.200-1.230 EPS and its FY 2026 guidance to 4.840-4.930 EPS.

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

• Core business growth remained healthy: Q2 revenue rose 6% year over year to $197.8 million, while management said the business excluding the divested 3P Revenue Recovery unit grew at a high-single-digit rate, supported by upsell, cross-sell, and improving gross retention.
• SPS reported strong profitability and cash generation, with adjusted EBITDA of $66.6 million and trailing 12-month free cash flow of $198.7 million, up 40% year over year. The company used $51.2 million of quarterly free cash flow to repurchase shares.
• The company sold its 3P Revenue Recovery business for $9.5 million in cash and recorded a $23.5 million loss on the sale. Management said the divestiture removes a lower-overlap Amazon Marketplace business and sharpens focus on 1P suppliers, but it reduces second-half 2026 revenue by approximately $10.5 million.
• SPS is expanding its AI strategy through MAX, which is detecting supply-chain issues and delivering measurable customer savings. MAX is expected to become generally available to Fulfillment customers by the end of summer, with paid autonomous-agent bundles targeted for launch by late Q4 2026.
• Full-year 2026 guidance calls for revenue of $788.4 million to $793.4 million and adjusted EBITDA of $264.6 million to $269.1 million, implying roughly 34% adjusted EBITDA margin and about 300 basis points of margin expansion. Management expects core revenue growth in the high-single digits, although total customer counts are projected to be flat to slightly positive.

SPS Commerce Price Performance

Shares of NASDAQ:SPSC traded down $3.57 during trading hours on Thursday, hitting $65.83. The company’s stock had a trading volume of 531,203 shares, compared to its average volume of 489,606. The firm’s fifty day moving average price is $58.53 and its 200 day moving average price is $62.27. SPS Commerce has a 52 week low of $49.04 and a 52 week high of $124.08. The company has a market capitalization of $2.42 billion, a price-to-earnings ratio of 27.43 and a beta of 0.56.

Hedge Funds Weigh In On SPS Commerce

Several institutional investors have recently bought and sold shares of SPSC. NewEdge Advisors LLC raised its stake in 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 buying an additional 191 shares in the last quarter. Advisory Services Network LLC bought a new stake in SPS Commerce during the 3rd quarter valued at $32,000. Advisors Asset Management Inc. increased its holdings in shares of SPS Commerce by 39.9% in the 1st quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker’s stock valued at $52,000 after acquiring an additional 112 shares during the period. Global Retirement Partners LLC increased its holdings in shares of SPS Commerce by 2,130.0% in the 4th quarter. Global Retirement Partners LLC now owns 446 shares of the software maker’s stock valued at $40,000 after acquiring an additional 426 shares during the period. Finally, Summit Securities Group LLC bought a new position in shares of SPS Commerce in the 4th quarter worth $45,000. 98.96% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on SPSC. Wall Street Zen lowered shares of SPS Commerce from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th. Cantor Fitzgerald set a $60.00 price target on SPS Commerce and gave the company a “neutral” rating in a report on Friday, May 1st. DA Davidson set a $55.00 price objective on SPS Commerce and gave the stock a “neutral” rating in a research note on Wednesday, July 1st. Zacks Research upgraded SPS Commerce from a “strong sell” rating to a “hold” rating in a report on Monday, July 20th. Finally, Morgan Stanley lowered SPS Commerce from an “overweight” rating to an “underweight” rating and decreased their target price for the company from $70.00 to $57.00 in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, SPS Commerce has an average rating of “Hold” and an average price target of $75.82.

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.