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

Shares of SPS Commerce, Inc. (NASDAQ:SPSC) gapped up before the market opened 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 changing hands.

The software maker reported $1.14 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.14. SPS Commerce had a net margin of 11.65% and a return on equity of 12.17%. The company had revenue of $192.65 million for the quarter, compared to analysts’ expectations of $193.60 million. During the same period last year, the firm posted $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.

Key Stories Impacting SPS Commerce

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

• Positive Sentiment: Q4 EPS beat and stronger full‑year EPS outlook — SPS reported $1.14 EPS vs. $1.00 consensus and raised FY2026 EPS guidance to $4.420–4.500, well above the street (consensus ~4.07), signaling better profitability expectations for the year. SPS Commerce (SPSC) Q4 Earnings Beat Estimates
• Positive Sentiment: Board strengthening — the company appointed two independent directors (Michael McConnell and Fumbi Chima), which supports governance and institutional investor confidence. SPS Commerce Appoints New Independent Directors to the Board
• Neutral Sentiment: Revenue growth vs. ests — Q4 revenue rose 12.7% YoY to $192.65M (slightly below the $193.6M consensus), so growth remains healthy but dollar results missed expectations by a small margin. Company slide deck and call are available for details. SPS Commerce Q4 Results and Call Materials
• Negative Sentiment: Softer near‑term revenue guide — Q1 2026 revenue guidance ($191.6M–$193.6M) is below the ~$197M consensus and Q1 EPS guide (0.95–0.99) sits essentially in line but toward the low end, raising concern about near‑term demand/seasonality. That revenue softness is the main driver of weakness despite the FY EPS raise. SPS Commerce Q4 Results and Guidance
• Negative Sentiment: Insider sale disclosed — Director Marty Reaume sold 1,000 shares at ~$79.92; while small, insider selling can amplify negative sentiment in a weak market. SPS Commerce Director Marty Reaume Sells 1,000 Shares

Analyst Ratings Changes

A number of research firms have recently commented on SPSC. Cantor Fitzgerald set a $70.00 price target on SPS Commerce in a research report on Friday. Needham & Company LLC reissued a “buy” rating and set a $110.00 target price (down from $160.00) on shares of SPS Commerce in a research note on Friday, October 31st. Morgan Stanley set a $100.00 target price on shares of SPS Commerce and gave the stock an “equal weight” rating in a report on Tuesday, November 11th. Stifel Nicolaus set a $65.00 price target on shares of SPS Commerce in a report on Friday. Finally, Craig Hallum downgraded shares of SPS Commerce from a “buy” rating to a “hold” rating and set a $70.00 price objective for the company. in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $93.80.

Insider Buying and Selling

In other SPS Commerce 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 completion of the transaction, the director owned 9,158 shares of the company’s stock, valued at $731,907.36. This represents a 9.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.98% of the company’s stock.

Institutional Trading of SPS Commerce

A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in SPS Commerce by 5.3% during the 3rd quarter. Vanguard Group Inc. now owns 4,944,449 shares of the software maker’s stock worth $514,915,000 after buying an additional 249,351 shares in the last quarter. Nordea Investment Management AB grew 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 in the last quarter. UBS Group AG increased its position in shares of SPS Commerce by 182.3% in the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker’s stock valued at $115,447,000 after acquiring an additional 836,407 shares during the last quarter. Conestoga Capital Advisors LLC increased its position in shares of SPS Commerce by 2.5% in the third quarter. Conestoga Capital Advisors LLC now owns 1,281,511 shares of the software maker’s stock valued at $133,457,000 after acquiring an additional 30,769 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in SPS Commerce by 1.2% during the second quarter. Geode Capital Management LLC now owns 975,890 shares of the software maker’s stock worth $132,824,000 after acquiring an additional 12,046 shares in the last quarter. Institutional investors own 98.96% of the company’s stock.

SPS Commerce Price Performance

The firm has a 50-day moving average of $87.78 and a 200 day moving average of $97.50. The stock has a market capitalization of $2.46 billion, a price-to-earnings ratio of 29.23 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.