Shopify posts double-digit Q3 sales growth as revenue hits $3.74B
Key points
- Shopify reported third-quarter 2026 revenue of $3.74 billion, up 32% year over year, while adjusted earnings of $0.49 per share exceeded the cited $0.47 analyst estimate.
- Gross merchandise volume reached $119.15 billion, below the $120.08 billion estimate, while shares dropped more than 19% in premarket trading following the announcement.
- Shopify expects fourth-quarter revenue growth in the low-thirties percentage range and gross profit growth in the high twenties, while continuing to target positive free cash flow.
Shopify (NASDAQ:SHOP) reported third-quarter 2026 revenue of $3.74 billion, up 32% year over year, while adjusted earnings of $0.49 per share exceeded the cited $0.47 analyst consensus.
Gross merchandise volume increased approximately 29% to $119.15 billion but missed the $120.08 billion estimate, while Subscription Solutions revenue of $836 million fell short of analysts' $850.2 million forecast.
Merchant Solutions revenue increased approximately 35% to $2.91 billion, while Subscription Solutions revenue grew about 20%, reflecting continued expansion across the company's e-commerce platform.
Operating income rose 66% to $568 million, exceeding the $523.9 million estimate, while free cash flow reached $816 million and free cash flow margin expanded to 22% from 18%.
Shopify expects fourth-quarter revenue to grow at a low-thirties percentage rate, gross profit to increase at a high-twenties rate and operating expenses to represent 29%–30% of revenue.
The company continues providing online storefronts, payment processing, merchant financing and commerce software to businesses, with its Merchant Solutions segment generating most of its quarterly revenue.
Following the announcement, Shopify shares fell more than 19% in premarket trading on November 3, as investors reacted to the missed GMV and subscription revenue estimates despite stronger adjusted earnings.
