SPS Commerce (NASDAQ:SPSC) Announces Earnings Results

SPS Commerce (NASDAQ:SPSC) announced its earnings results on Thursday. The software maker reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.14, FiscalAI reports. The company had revenue of $192.65 million during the quarter, compared to analyst estimates of $193.60 million. SPS Commerce had a net margin of 11.65% and a return on equity of 12.17%. SPS Commerce’s revenue was up 12.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.89 earnings per share. SPS Commerce updated its FY 2026 guidance to 4.420-4.500 EPS and its Q1 2026 guidance to 0.950-0.990 EPS.

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

• 100th consecutive quarter of revenue growth with FY2025 revenue up 18% to $751.5M and Q4 revenue of $192.7M (+13%), while adjusted EBITDA rose 22% in Q4 and 24% for the year, highlighting continued profitable momentum.
• Management guided FY2026 revenue of $798.5M–$806.9M (~7% growth) and adjusted EBITDA of $261M–$265.5M (13%–15% growth), and expects to drive ~2 percentage points of EBITDA margin expansion annually and high-single-digit organic revenue growth without acquisitions.
• Strategic product moves include the acquisition of Carbon6 to expand revenue-recovery capabilities and the launch of Max, an agentic AI layer embedded in the SPS network (beta live), which management expects to be a competitive differentiator and cross-sell/monetization opportunity.
• Strong capital allocation: $151M cash, $115M of share repurchases in 2025 (76% of free cash flow), and board authorization to increase the buyback program to a $300M total, underscoring shareholder-return focus.
• Near-term headwinds from macro/tariff-related spend scrutiny and recent Amazon policy changes weighed on revenue-recovery take rates and contributed to a 350 decline in 3P customers and softer revenue performance in Q4, with management saying these effects should be lapped by H2 2026.

SPS Commerce Price Performance

Shares of NASDAQ SPSC opened at $64.75 on Friday. The company has a market cap of $2.44 billion, a price-to-earnings ratio of 29.04 and a beta of 0.56. The stock’s 50-day moving average is $87.78 and its two-hundred day moving average is $97.50. SPS Commerce has a 1-year low of $64.18 and a 1-year high of $154.76.

More SPS Commerce News

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

• Positive Sentiment: Q4 EPS upside and revenue growth — SPS reported $1.14 EPS vs. $1.00 consensus and EPS of $0.89 a year ago; revenue grew 12.7% YoY to $192.65M (a small miss vs. ~$193.6M est.). Article Title
• Positive Sentiment: Raised FY 2026 EPS guidance — management guided FY26 EPS to $4.420–$4.500, above consensus (~$4.07), signaling stronger full?year profitability expectations. (See company press release/slide deck.) Press Release
• Positive Sentiment: Board strengthening — SPS added two independent directors (Michael McConnell and Fumbi Chima), which can be viewed as a governance positive. Article Title
• Neutral Sentiment: Earnings materials & call available — full earnings call transcript, slide deck and press release were posted for investors to review management commentary and assumptions. Earnings Call Transcript
• Negative Sentiment: Near?term revenue guidance weakness — Q1 2026 revenue guidance ($191.6M–$193.6M) is below consensus (~$197M), creating concern about demand/seasonality in the coming quarter. This short?term revenue miss is the primary negative catalyst. Press Release
• Negative Sentiment: Insider selling — Director Marty Reaume sold 1,000 shares recently, a small but visible insider sale that can amplify negative sentiment. Insider Trade
• Negative Sentiment: Analyst positioning remains cautious — multiple firms have trimmed targets and shifted toward neutral/hold, leaving consensus price targets well below recent highs and adding selling pressure. Analyst Notes

Wall Street Analyst Weigh In

Several research firms recently weighed in on SPSC. Cantor Fitzgerald downgraded shares of SPS Commerce from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $135.00 to $80.00 in a report on Friday, October 31st. Morgan Stanley set a $100.00 price objective on SPS Commerce and gave the company an “equal weight” rating in a report on Tuesday, November 11th. Robert W. Baird set a $104.00 target price on SPS Commerce in a research note on Friday, October 31st. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of SPS Commerce in a research report on Thursday, January 22nd. Finally, Needham & Company LLC reissued a “buy” rating and set a $110.00 price target (down previously from $160.00) on shares of SPS Commerce in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $99.22.

Insider Activity at SPS Commerce

In related news, Director Marty M. Reaume sold 1,732 shares of the company’s stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $92.26, for a total transaction of $159,794.32. Following the sale, the director directly owned 9,158 shares in the company, valued at approximately $844,917.08. This represents a 15.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.98% of the company’s stock.

Institutional Investors Weigh In On SPS Commerce

Large investors have recently modified their holdings of the company. UBS Group AG raised its holdings in shares of SPS Commerce by 806.1% in the 3rd quarter. UBS Group AG now owns 458,860 shares of the software maker’s stock valued at $47,786,000 after purchasing an additional 408,221 shares in the last quarter. Disciplined Growth Investors Inc. MN increased its holdings in SPS Commerce by 86.4% in the third quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after buying an additional 367,346 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in SPS Commerce by 69.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 661,610 shares of the software maker’s stock valued at $58,969,000 after buying an additional 270,424 shares in the last quarter. Federated Hermes Inc. lifted its holdings in SPS Commerce by 38,429.2% during the 4th quarter. Federated Hermes Inc. now owns 245,046 shares of the software maker’s stock worth $21,841,000 after buying an additional 244,410 shares during the last quarter. Finally, Lazard Asset Management LLC boosted its position in shares of SPS Commerce by 344.8% during the 3rd quarter. Lazard Asset Management LLC now owns 259,258 shares of the software maker’s stock worth $26,999,000 after acquiring an additional 200,978 shares in the last quarter. 98.96% of the stock is owned by hedge funds and other institutional investors.

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.