SPS Commerce (NASDAQ:SPSC) Shares Gap Up Following Better-Than-Expected Earnings

SPS Commerce, Inc. (NASDAQ:SPSC)’s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $64.75, but opened at $68.10. SPS Commerce shares last traded at $65.5550, with a volume of 399,318 shares changing hands.

The software maker reported $1.14 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.14. The business had revenue of $192.65 million during the quarter, compared to analyst estimates of $193.60 million. SPS Commerce had a net margin of 12.42% and a return on equity of 12.84%. The company’s revenue was up 12.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.89 earnings per share. SPS Commerce has set its FY 2026 guidance at 4.420-4.500 EPS and its Q1 2026 guidance at 0.950-0.990 EPS.

SPS Commerce News Summary

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

• Positive Sentiment: Q4 EPS beat and solid profitability — SPS reported $1.14 EPS vs. $1.00 consensus and improved net margin/ROE, showing profitable growth that can support valuation. SPS Commerce (SPSC) Q4 Earnings Beat Estimates
• Positive Sentiment: FY 2026 EPS guidance well above street — management set FY EPS at $4.420–4.500 versus ~4.07 consensus, signaling confidence in full‑year profitability and underlying margin leverage. SPSC Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Board refresh — company appointed two independent directors (Michael McConnell and Fumbi Chima), a governance move that may be viewed neutrally to mildly positive over time. SPS Commerce Appoints New Independent Directors to the Board
• Neutral Sentiment: Q1 EPS guidance roughly inline — management gave Q1 EPS guidance of $0.950–0.990 vs. consensus ~0.970, so near‑term earnings expectations are broadly as anticipated. SPSC Q4 2025 Earnings Call Transcript
• Negative Sentiment: Quarterly revenue slightly missed estimates — Q4 revenue was $192.65M vs. $193.6M consensus, and while revenue grew 12.7% YoY this miss pressures top‑line momentum expectations. SPS Commerce Q4 Earnings (MarketBeat)
• Negative Sentiment: Q1 revenue guidance below street — management guided Q1 revenue $191.6M–$193.6M vs. ~$197M consensus, implying near‑term revenue softness that likely weighs on multiple and near‑term growth expectations. SPSC Q4 2025 Earnings Call Transcript
• Negative Sentiment: Insider selling — a director sold 1,000 shares at ~$79.92 recently; small in size but often read negatively by the market when combined with other soft top‑line signals. SPS Commerce Director Marty Reaume Sells 1,000 Shares

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on SPSC shares. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of SPS Commerce in a research note on Thursday, January 22nd. Craig Hallum cut SPS Commerce from a “buy” rating to a “hold” rating and set a $70.00 price target on the stock. in a report on Friday. Needham & Company LLC restated a “buy” rating and issued a $110.00 price target (down from $160.00) on shares of SPS Commerce in a research note on Friday, October 31st. Morgan Stanley set a $95.00 price objective on shares of SPS Commerce in a research report on Friday. Finally, Northland Securities set a $109.00 target price on shares of SPS Commerce in a report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, SPS Commerce currently has a consensus rating of “Hold” and an average target price of $88.90.

Insider Activity

In other news, Director Marty M. Reaume sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $79.92, for a total transaction of $79,920.00. Following the sale, the director directly owned 9,158 shares of the company’s stock, valued at $731,907.36. This represents a 9.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On SPS Commerce

Several large investors have recently bought and sold shares of the business. Nordea Investment Management AB lifted its holdings in shares of SPS Commerce by 505.3% in the 2nd quarter. Nordea Investment Management AB now owns 1,330,237 shares of the software maker’s stock valued at $177,587,000 after acquiring an additional 1,110,476 shares during the last quarter. UBS Group AG raised its position in SPS Commerce by 182.3% during the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker’s stock valued at $115,447,000 after purchasing an additional 836,407 shares during the period. Norges Bank bought a new stake in shares of SPS Commerce in the 4th quarter valued at approximately $49,883,000. Van Berkom & Associates Inc. purchased a new position in shares of SPS Commerce in the 3rd quarter worth approximately $51,878,000. Finally, Disciplined Growth Investors Inc. MN increased its position in shares of SPS Commerce by 86.4% during the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after purchasing an additional 367,346 shares during the last quarter. Institutional investors own 98.96% of the company’s stock.

SPS Commerce Trading Down 4.4%

The company has a 50-day moving average price of $87.34 and a two-hundred day moving average price of $96.96. The stock has a market cap of $2.33 billion, a P/E ratio of 25.27 and a beta of 0.56.

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.