SPS Commerce (NASDAQ:SPSC) Issues Earnings Results

SPS Commerce (NASDAQ:SPSC) announced its earnings results on Thursday. The software maker reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $1.08 by $0.19, FiscalAI reports. The business had revenue of $197.81 million during the quarter, compared to the consensus estimate 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 was up 5.6% on a year-over-year basis. During the same period in the previous year, the company posted $1.00 earnings per share. 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 Stock Performance

SPSC stock traded down $3.57 during trading on Thursday, reaching $65.83. The company had a trading volume of 531,203 shares, compared to its average volume of 489,606. The company has a market cap of $2.42 billion, a price-to-earnings ratio of 27.43 and a beta of 0.56. SPS Commerce has a twelve month low of $49.04 and a twelve month high of $124.08. The firm has a 50-day simple moving average of $58.53 and a 200-day simple moving average of $62.27.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Cantor Fitzgerald set a $60.00 price objective on shares of SPS Commerce and gave the stock a “neutral” rating in a research report on Friday, May 1st. Rothschild & Co Redburn set a $60.00 target price on shares of SPS Commerce and gave the company a “neutral” rating in a research report on Thursday, April 16th. Weiss Ratings downgraded shares of SPS Commerce from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 23rd. Citigroup reaffirmed a “buy” rating and issued a $82.00 price target (up from $76.00) on shares of SPS Commerce in a report on Tuesday, July 21st. Finally, Stifel Nicolaus set a $60.00 price target on SPS Commerce in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, SPS Commerce has a consensus rating of “Hold” and a consensus target price of $75.82.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SPSC. NewEdge Advisors LLC lifted its stake in shares of SPS Commerce by 545.7% during 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 during the period. Advisory Services Network LLC acquired a new position in shares of SPS Commerce in the 3rd quarter valued at $32,000. Global Retirement Partners LLC increased its position 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. Summit Securities Group LLC purchased a new position in SPS Commerce in the 4th quarter worth $45,000. Finally, Danske Bank A S purchased a new position in SPS Commerce in the 3rd quarter worth $52,000. Hedge funds and other institutional investors own 98.96% of the company’s stock.

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.