Shopify Q3 revenue rises 32% to $3.74 billion; GMV misses, shares fall

Shopify's GMV rose 29% to $119.1 billion, short of estimates, and shares fell about 15% despite a 66% jump in operating income to $568 million.

What Shopify reported

Shopify Inc. reported third-quarter revenue of $3.742 billion on Nov. 3, 2026, up 32% from $2.844 billion a year earlier, and gross merchandise volume (GMV) of $119.1 billion. The shares fell about 15% after the release as GMV came in below analyst estimates, according to two outlets that covered the report.^[1][2][3]

Operating income rose to $568 million from $343 million, and net income was $462 million, up from $264 million. Free cash flow was $816 million, a 22% margin, against $507 million and 18% in the third quarter of 2025. These figures are from the company's press release, filed with the U.S. Securities and Exchange Commission as an 8-K exhibit.^[1]

Where growth came from

Merchant solutions revenue, which includes payments and other services tied to merchant sales, rose to $2.906 billion from $2.145 billion, a 35.5% increase by the Signal Edition's calculation from the filing. Subscription solutions revenue rose to $836 million from $699 million, up 19.6%. Monthly recurring revenue was $230 million, compared with $193 million a year earlier.^[1]

GMV grew 29.5% from $92.0 billion, a slower pace than revenue. Revenue was equal to 3.14% of GMV, compared with 3.09% a year earlier, so Shopify earned slightly more per dollar of merchant sales. Both ratios are calculated from the release's figures.^[1]

Gross profit rose 28.0% to $1.781 billion. Operating expenses grew 15.8% to $1.213 billion, which lifted the operating margin to 15.2% from 12.1%. Transaction and loan losses fell to $120 million from $148 million, per the filing.^[1]

Why the shares fell

StockStory, writing on Yahoo Finance, said revenue matched the S&P consensus of $3.75 billion and that GMV "slightly missed" expectations. It reported that shares fell 15.1% to $132.50 after the release.^[2]

TIKR, also on Yahoo Finance, put the GMV estimate at $120.1 billion and the subscription revenue estimate at $850 million, without naming a data provider. Against those figures, GMV was about $1.0 billion short and subscription revenue $14 million short. TIKR said the stock fell about 15% on the day. The two outlets give slightly different readings of the cause, and Shopify did not comment on the share price in its release.^[3]

Harley Finkelstein, Shopify's president, said Shopify is "uncommonly good at operating in two realities at the same time" in the release, citing $119 billion of GMV in the quarter.^[1]

Fourth-quarter outlook

For the fourth quarter of 2026, Shopify expects revenue to grow at a low-thirties percentage rate year over year and gross profit dollars to grow at a high-twenties rate. It guided operating expenses to 29% to 30% of revenue, stock-based compensation to $155 million, and a free cash flow margin consistent with the fourth quarter of 2025.^[1]

The release said the Form 10-Q for the quarter would be filed with U.S. and Canadian regulators. It did not give a date for the fourth-quarter report.^[1]