SPS Commerce (NASDAQ:SPSC) Updates FY 2026 Earnings Guidance

SPS Commerce (NASDAQ:SPSC) issued an update on its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 4.840-4.930 for the period, compared to the consensus earnings per share estimate of 4.460. The company issued revenue guidance of $788.4 million-$793.4 million, compared to the consensus revenue estimate of $797.6 million. SPS Commerce also updated its Q3 2026 guidance to 1.200-1.230 EPS.

SPS Commerce Trading Up 11.5%

Shares of NASDAQ SPSC traded up $7.56 during mid-day trading on Friday, reaching $73.39. 1,414,536 shares of the company’s stock were exchanged, compared to its average volume of 698,065. SPS Commerce has a twelve month low of $49.04 and a twelve month high of $124.08. The firm has a market capitalization of $2.69 billion, a price-to-earnings ratio of 30.58 and a beta of 0.56. The business has a fifty day simple moving average of $58.53 and a 200 day simple moving average of $62.27.

SPS Commerce (NASDAQ:SPSC) last issued its quarterly earnings data on Thursday, July 30th. The software maker reported $1.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.19. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.The business had revenue of $197.81 million during the quarter, compared to analyst estimates of $195.46 million. During the same period in the previous year, the firm earned $1.00 EPS. SPS Commerce’s quarterly revenue was up 5.6% compared to the same quarter last year. 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. Equities research analysts predict that SPS Commerce will post 3.42 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

SPSC has been the subject of several research reports. Zacks Research raised shares of SPS Commerce from a “strong sell” rating to a “hold” rating in a research report on Monday, July 20th. Rothschild & Co Redburn set a $60.00 price objective on shares of SPS Commerce and gave the company a “neutral” rating in a research report on Thursday, April 16th. Stifel Nicolaus set a $70.00 target price on shares of SPS Commerce and gave the stock a “hold” rating in a research note on Friday. Wall Street Zen cut SPS Commerce from a “buy” rating to a “hold” rating in a report on Saturday, July 18th. Finally, Morgan Stanley reissued an “underweight” rating and issued a $59.00 price target (up from $57.00) on shares of SPS Commerce in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, SPS Commerce currently has an average rating of “Hold” and an average price target of $74.60.

Key Stories Impacting SPS Commerce

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

• Positive Sentiment: Second-quarter results exceeded estimates. SPS Commerce reported adjusted EPS of $1.27, ahead of the $1.08 consensus, while revenue rose 5.6% year over year to approximately $197.8 million, above expectations of $195.5 million. Adjusted EBITDA increased 19% to $66.6 million. SPS Commerce Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Full-year EPS guidance was raised relative to consensus. SPS Commerce issued 2026 adjusted EPS guidance of $4.84 to $4.93, above the $4.46 analyst consensus. The company also repurchased $51.2 million of stock during the quarter. SPS Commerce Reports Strong Second Quarter 2026 Financial Results
• Neutral Sentiment: Third-quarter expectations are mixed. Q3 EPS guidance of $1.20 to $1.23 is above the $1.18 consensus, but revenue guidance of $196.3 million to $198.3 million trails the $202.4 million consensus. The completed divestiture of the 3P Revenue Recovery business is expected to reduce second-half 2026 revenue by about $10.5 million while remaining neutral to adjusted EBITDA.
• Negative Sentiment: Reported net income declined sharply. GAAP net income fell to $6.9 million, or $0.19 per diluted share, from $19.7 million, or $0.52, a year earlier. In addition, recent insider-trading data shows selling but no insider purchases, which may weigh on investor sentiment.

Institutional Investors Weigh In On SPS Commerce

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. grew 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 in the last quarter. AQR Capital Management LLC raised its holdings in SPS Commerce by 2.0% during the first quarter. AQR Capital Management LLC now owns 14,134 shares of the software maker’s stock worth $1,876,000 after acquiring an additional 275 shares in the last quarter. NewEdge Advisors LLC boosted its position in SPS Commerce by 545.7% during the first quarter. NewEdge Advisors LLC now owns 226 shares of the software maker’s stock valued at $30,000 after purchasing an additional 191 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in SPS Commerce by 137.7% during the second quarter. EverSource Wealth Advisors LLC now owns 649 shares of the software maker’s stock valued at $88,000 after purchasing an additional 376 shares during the last quarter. Finally, First Trust Advisors LP grew 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.