Shopify Q3 Revenue Rises 32% but Misses Expectations: Shares Fall About 19% Premarket
Nov. 3 — Canadian e-commerce platform Shopify reported its third-quarter 2026 results before the market open today, with revenue of $3.74 billion, up 32 percent year over year. Gross merchandise volume and subscription revenue both missed market expectations, however, and the stock fell as much as about 19 percent in premarket trading, in the company's first revenue miss since 2022.
Shopify's third-quarter gross merchandise volume was $119.15 billion, up about 29 percent year over year but below the roughly $120.08 billion expected, with growth slowing from 31 percent in the previous quarter. Subscription solutions revenue was $836 million, up 20 percent but below the $850.2 million forecast; merchant solutions revenue was $2.91 billion, up about 35 percent and slightly ahead of expectations.
Adjusted earnings per share were $0.49, above the roughly $0.47 expected; operating income was $568 million, up 66 percent; and free cash flow was $816 million, up 61 percent, with the free cash flow margin widening from 18 percent to 22 percent.
The market reaction showed investors focusing on slower growth rather than improved profitability. Analysts noted that Shopify's valuation already priced in high growth expectations, so any detail falling short would be magnified.
On the earnings call, the company's chief financial officer said gross margins face multiple pressures, including higher super intelligence (SI) computing costs such as server hosting and increased spending as usage of its merchant assistant tools expands.
For the fourth quarter, Shopify expects revenue growth in the low thirties percent range, gross profit growth in the high twenties, and operating expenses at 29 to 30 percent of revenue. The guidance offered no signal of renewed acceleration and left the market cautious about the holiday season. Through the premarket session, Shopify shares were down more than 7 percent for the year.
Source: Shopify
Published by GSM · USA (original Chinese edition)
Photo: Shopify 公司标志。公共领域，经 Wikimedia Commons / The Shopify logo. Public domain, via Wikimedia Commons
