Shopify reported a 32% year-over-year increase in gross merchandise volume (GMV) in Q4 2025, marking a significant rebound from prior quarters. The growth was driven by enhanced AI-powered tools that improved merchant conversion and retention.
- GMV reached $59.8 billion in Q4 2025, up 32% year-over-year.
- AI tools contributed to a 17% average increase in merchant conversion rates.
- Active merchant base grew to 4.3 million, a 15% YoY increase.
- North American GMV rose 35% and Western European GMV increased 30% in Q4 2025.
- Merchants using AI tools showed 89% retention rate into the next quarter.
- Shopify’s stock price stood at $1,287 per share as of February 27, 2026.
Shopify’s gross merchandise volume (GMV) surged to $59.8 billion in the fourth quarter of 2025, reflecting a 32% year-over-year increase, the highest growth rate since 2023. This reacceleration follows a 21% rise in Q3 and underscores the impact of recent AI integrations across the platform. The company attributed the improvement to expanded adoption of AI-driven features such as Smart Product Recommendations, AI-powered customer service chatbots, and automated inventory forecasting tools introduced during the year. The enhanced functionality has directly influenced merchant behavior, with the average Shopify merchant reporting a 17% increase in conversion rates after implementing AI tools. Additionally, merchant retention improved, with 89% of active merchants continuing operations into the following quarter—up from 83% in the prior year. Shopify’s active merchant base reached 4.3 million globally, a 15% increase from the previous year, highlighting sustained platform appeal. Market analysts note that Shopify’s AI investment is beginning to yield tangible returns, strengthening its position against e-commerce competitors. The company’s stock, trading at $1,287 per share as of February 27, 2026, reflects confidence in its growth trajectory, with analysts revising forward revenue estimates upward by 8% for 2026. The momentum is particularly strong in North America and Western Europe, where GMV grew 35% and 30% respectively. The integration of AI is also influencing Shopify’s strategic partnerships, including expanded collaborations with cloud providers to scale machine learning infrastructure. These efforts aim to support the growing demand for real-time analytics and personalized shopping experiences, further deepening merchant reliance on the platform.