# 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. By The Signal Edition Newsroom | Ecommerce and retail / Platforms Published: 2026-11-05T07:49:42Z Updated: 2026-11-05T07:49:42Z Canonical: https://thesignaledition.com/article/shopify-q3-2026-revenue-3-74-billion-gmv-119-billion-shares-fall-shp3t8 Image: https://thesignaledition.com/media/2368ee8fb4b749f59301a6648c8d5218.jpg (Shopify's Toronto office building seen from the street; credit: Raysonho @ Open Grid Scheduler / Wikimedia Commons (CC0 1.0)) ## Key points - Shopify reported third-quarter 2026 revenue of $3.742 billion on Nov. 3, 2026, up 32% from $2.844 billion a year earlier. - Gross merchandise volume was $119.1 billion, up 29.5% and below the $120.1 billion estimate cited by TIKR. - Operating income rose to $568 million from $343 million, and free cash flow was $816 million, a 22% margin. - Shopify guided fourth-quarter revenue growth to a low-thirties percentage rate; StockStory reported the shares fell 15.1% to $132.50. ## 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) [2](https://finance.yahoo.com/markets/stocks/articles/shopify-nasdaq-shop-q3-2026-131649424.html) [3](https://finance.yahoo.com/markets/stocks/articles/shopify-sinks-15-q3-gmv-141817096.html) 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) ## 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) ## 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](https://finance.yahoo.com/markets/stocks/articles/shopify-nasdaq-shop-q3-2026-131649424.html) 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](https://finance.yahoo.com/markets/stocks/articles/shopify-sinks-15-q3-gmv-141817096.html) 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) ## 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) 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](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) ## Sources 1. [Shopify Inc. (SEC Form 8-K, Exhibit 99.1): Shopify Sustains Rapid Growth with Revenue Up 32% and Free Cash Flow Margin of 22%](https://www.sec.gov/Archives/edgar/data/0001594805/000159480526000067/exhibit991pressreleaseq320.htm) (2026-11-03) 2. [StockStory via Yahoo Finance: Shopify's (NASDAQ:SHOP) Q3 2026 earnings results: revenue in line with expectations but stock drops 15.1%](https://finance.yahoo.com/markets/stocks/articles/shopify-nasdaq-shop-q3-2026-131649424.html) (2026-11-03) 3. [TIKR via Yahoo Finance: Shopify Sinks 15% as Q3 GMV and Subscription Revenue Miss Estimates](https://finance.yahoo.com/markets/stocks/articles/shopify-sinks-15-q3-gmv-141817096.html) (2026-11-03)