Shopify Reports AI Search Driving Revenue Growth and Merchant Traffic in Q2

Shopify reported strong second-quarter earnings, crediting growth in AI-driven search as a key contributor to its results. President Harley Finkelstein told analysts on the company’s earnings call that AI has become a complement to traditional search rather than a replacement, particularly benefiting smaller merchants who make up the bulk of Shopify’s customer base. The company said AI-driven traffic and orders to its stores nearly tripled year-over-year during the quarter.

Finkelstein noted that traditional search traffic to Shopify merchants continues growing alongside AI search, still accounting for roughly a third of all storefront sessions. He explained that AI agents differ from conventional search engines by making multiple queries against Shopify’s product catalog, matching buyers with specific needs, such as vehicle dimensions or seating requirements, rather than relying solely on keywords. This approach, he said, is compressing the shopping journey, with half of AI-referred sessions landing directly on product pages, 2.5 times the rate seen through traditional search. Finkelstein added that 75% of AI-attributed purchases fell outside Shopify’s top 100 product categories.

Shopify reported revenue rose 36% to $3.6 billion, exceeding Wall Street’s forecast of $3.4 billion, while gross operating profit climbed 31% to $1.71 billion. The company also highlighted integrations with AI tools including Claude, ChatGPT, Perplexity, Manus, Replit, and Vercel.

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