As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the e-commerce software industry, including Commerce (NASDAQ: CMRC) and its peers.

While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions.

The 4 e-commerce software stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.5% since the latest earnings results.

Commerce (NASDAQ: CMRC)

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Commerce reported revenues of $86.84 million, up 5.4% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

“We’re off to a strong start in 2026, delivering solid financial results while continuing to execute against the strategy we laid out at the beginning of the year,” said Travis Hess, CEO of Commerce.

Commerce achieved the biggest analyst estimate beat and highest full-year guidance raise, but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 2.6% since reporting and currently trades at $2.96.

Is now the time to buy Commerce? Access our full analysis of the earnings results here, it’s free.

Best Q1: Shopify (NASDAQ: SHOP)

Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.

Shopify reported revenues of $3.17 billion, up 34.3% year on year, outperforming analysts’ expectations by 2.5%. The business had a strong quarter with an impressive beat of analysts’ EBITDA and gross merchandise volume estimates.

Shopify achieved the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 9.3% since reporting. It currently trades at $115.65.

Is now the time to buy Shopify? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Wix (NASDAQ: WIX)

Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ: WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.

Wix reported revenues of $541.2 million, up 14.3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and revenue in line with analysts’ estimates.

Wix delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 28.8% since the results and currently trades at $54.00.

Read our full analysis of Wix’s results here.

GoDaddy (NYSE: GDDY)

Known for its memorable Super Bowl commercials that put it on the map, GoDaddy (NYSE: GDDY) is a domain registrar and web services provider that helps entrepreneurs establish an online presence through domain registration, website building, hosting, and e-commerce tools.

GoDaddy reported revenues of $1.27 billion, up 6.1% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue estimates.

GoDaddy had the weakest full-year guidance update among its peers. The stock is down 2.4% since reporting and currently trades at $84.69.

Read our full, actionable report on GoDaddy here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.