Shopify Increases Share Buyback Amid Activist Scrutiny

Shopify (NASDAQ, TSX: SHOP) announced on June 2, 2026 that its board of directors authorized an additional $3 billion to repurchase Class A subordinate voting shares, raising the aggregate authorization to $5 billion, or about $6.9 billion CAD. According to the company's filing, purchases under the increased program begin on June 8, 2026, will be executed through pre-arranged algorithmic trading with no quarterly or annual minimums, and are capped at no more than 5 percent of outstanding Class A shares. The program does not obligate Shopify to buy any set amount and can be paused or stopped at any time.

Shopify launched its current $2 billion program in February 2026 and, per BetaKit, had used almost three-quarters of it, about $1.45 billion as of June 1, before topping it up. CFO Jeff Hoffmeister said in a statement that the increase shows "confidence in the durability of our business and the opportunity ahead," adding that consistent operating cash flow and a long-term balance sheet let the company return capital "especially during periods of market volatility." Buybacks can support a share price by reducing the supply of shares outstanding.

The increase comes just ahead of Shopify's annual general meeting on June 16, 2026, where investors will consider a shareholder proposal from the Shareholder Association for Research and Education (SHARE), a Canadian non-profit, filed on behalf of The Pension Plan of the United Church of Canada. The proposal asks Shopify to pledge that it will respect human rights and align with international standards when using AI across its technology and operations. SHARE's proxy statement argues that "Shopify lags behind several peers in meeting internationally recognized standards on responsible AI."

Shopify is urging shareholders to reject the proposal. In its opposing statement, the company called it "a solution in search of a problem" and said its internal code of conduct already addresses ethical and legal responsibility. Shopify has leaned heavily into AI, both mandating internal use and pushing into agentic commerce, positioning the technology as central to the future of online shopping. CEO Tobi Lutke has told employees to prove that AI cannot do a job before requesting additional headcount or resources, underscoring how central AI is to the company's strategy.

The buyback and the proxy fight play out against a difficult year for Shopify's stock, which is down nearly 27 percent year-to-date on the Toronto Stock Exchange amid a broad slump in software shares tied to uncertainty about how AI will reshape the sector. In its first-quarter report, Shopify posted a net loss of $581 million USD ($790 million CAD) while beating revenue expectations, and it has made recurring layoffs. The company projects revenue growth of 25 to 29 percent next quarter, a slowdown from the low-thirties pace it guided to previously. As a general pattern, companies often expand buybacks when management views the shares as undervalued, though such programs do not guarantee a higher price and remain subject to market conditions. This is informational, not investment advice.