Shopify shares jumped up to 11% in premarket trading on Wednesday. The company reported better-than-expected revenue growth and announced a $2 billion share buyback, which helped offset a small miss on adjusted earnings.

In the fourth quarter, Shopify reported adjusted earnings of 48 cents per share, just below the FactSet analyst estimate of 50 cents. Revenue reached $3.67 billion, up 31% from last year and above Wall Street’s $3.59 billion forecast. Gross merchandise volume, which tracks transaction activity across Shopify’s merchants, also rose 31% to $123.8 billion, beating the 28% increase analysts expected.

Even though earnings fell short, investors reacted positively to Shopify’s overall growth story. The stock had dropped 21% in 2026 through Tuesday’s close, as part of a broader decline in technology stocks, even as Shopify has added artificial intelligence features to its platform.

For the first quarter, Shopify expects revenue growth in the low 30% range, which is higher than the 25% increase analysts predicted. The company also expects its free cash flow margin to be in the low to mid teens, slightly below the 15% it reported a year ago.

Shopify said the new buyback program will use pre-set algorithmic trading instructions and will not have set quarterly or annual minimums.

Shopify also pointed to ongoing gains in the U.S. e-commerce market share, estimating it held over 14% at the end of 2025, up from more than 12% the year before. This shows its growing presence in a market led by a few large platforms.