Shares of SPS Commerce (SPSC) are set to open sharply lower, plummeting 32.77% in pre-market trading on Friday, following a disappointing third-quarter earnings report, reduced full-year guidance, and subsequent analyst downgrades. The cloud-based supply chain management solutions provider's stock is facing significant pressure as investors react to the company's cautious outlook amid economic uncertainties.

SPS Commerce reported third-quarter revenue of $189.904 million, falling short of the analyst consensus estimate of $191.797 million. Despite beating earnings expectations with adjusted earnings per share of $1.13 compared to the expected $1.00, the revenue miss overshadowed the positive earnings result. CEO Chad Collins acknowledged the impact of "ongoing global trade and economic uncertainty" on the company's performance, noting increased scrutiny in spending among some customer groups.

Adding to investor concerns, SPS Commerce lowered its full-year 2025 revenue guidance to a range of $751.6 million to $753.6 million, down from its previous forecast of $759 million to $763 million. The company also provided a cautious fourth-quarter revenue outlook of $192.7 million to $194.7 million, which appears to be lower than analyst expectations. In response to the disappointing results and outlook, several analysts have downgraded the stock. D.A. Davidson cut its price target to $80 from $125, while Cantor Fitzgerald downgraded SPS Commerce to Neutral from Overweight, reducing its price target to $80 from $135. Despite the company's announcement of a new $100 million share repurchase program, the negative sentiment surrounding the revenue miss, reduced guidance, and analyst downgrades has led to the significant pre-market stock price drop.