SPS Commerce (NASDAQ:SPSC) Shares Gap Up on Earnings Beat

Shares of SPS Commerce, Inc. (NASDAQ:SPSC) gapped up prior to trading on Friday following a better than expected earnings announcement. 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 trading hands.

The software maker reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.14. SPS Commerce had a net margin of 12.42% and a return on equity of 12.84%. The business had revenue of $192.65 million for the quarter, compared to the consensus estimate of $193.60 million. During the same quarter in the previous year, the firm earned $0.89 earnings per share. The business’s quarterly revenue was up 12.7% compared to the same quarter last year. 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 Roundup

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

Analysts Set New Price Targets

SPSC has been the subject of a number of recent analyst reports. Wall Street Zen downgraded SPS Commerce from a “buy” rating to a “hold” rating in a report on Saturday, January 10th. Cantor Fitzgerald set a $70.00 price objective on shares of SPS Commerce in a report on Friday. Citigroup restated a “buy” rating and set a $84.00 target price (down from $110.00) on shares of SPS Commerce in a research report on Friday. 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 note on Friday, October 31st. Finally, Northland Securities set a $109.00 price target on SPS Commerce in a report on Friday, October 31st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, SPS Commerce presently has a consensus rating of “Hold” and a consensus price target of $88.90.

Insider Buying and Selling at SPS Commerce

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

Institutional Investors Weigh In On SPS Commerce

A number of hedge funds and other institutional investors have recently modified their holdings of 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 valued at $30,000 after buying an additional 191 shares during the period. Salomon & Ludwin LLC acquired a new position in SPS Commerce in the 3rd quarter valued at $28,000. Advisory Services Network LLC purchased a new position in shares of SPS Commerce during the 3rd quarter worth $32,000. Advisors Asset Management Inc. boosted its holdings in shares of SPS Commerce by 39.9% during the first quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker’s stock worth $52,000 after purchasing an additional 112 shares during the last quarter. Finally, Global Retirement Partners LLC grew its position in shares of SPS Commerce by 2,130.0% in the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker’s stock valued at $40,000 after purchasing an additional 426 shares during the period. 98.96% of the stock is currently owned by hedge funds and other institutional investors.

SPS Commerce Stock Down 4.4%

The company has a 50 day moving average of $87.34 and a 200 day moving average of $96.66. The stock has a market capitalization of $2.34 billion, a price-to-earnings ratio of 25.27 and a beta of 0.56.

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.