Shopify Third-Quarter Revenue, Gross Merchandise Volume Miss Street Views

10:47 AM EST, 11/03/2026 (MT Newswires) -- Shopify (SHOP) third-quarter results rose year over year, but the Canadian e-commerce platform's revenue and gross merchandise volume fell short of Wall Street's expectations. The company posted adjusted earnings of $0.49 a share for the September quarter, up from $0.34 the year before, ahead of the FactSet-polled consensus of $0.47. Revenue climbed 32% to $3.74 billion, but missed the Street's view for $3.77 billion. Gross merchandise volume, which represents the total dollar value of orders facilitated through the Shopify platform, advanced 29% to $119.15 billion. The average analyst estimate was for $120.91 billion. "At these levels of growth, the trends across all vantage points are very consistent with recent quarters," Chief Financial Officer Jeff Hoffmeister said during an earnings call, according to a FactSet transcript. "Growth was broad, based across merchant sizes and geographies, and remained evenly split among new and same store sales." Shares of the company tanked 9.4% in Tuesday trade, taking its year-to-date loss to 12%. In an emailed client note, Truist Securities said it believes the stock selloff largely reflects elevated investor expectations heading into the results, with GMV growth "remaining durable" at 30% in constant currency terms, but trailing market estimates by about $900 million. Shopify's gross profit rose 28% to $1.78 billion in the quarter, but represented a slowdown from the low-30% gains and consistent outperformance in recent quarters, the brokerage said. Subscription solutions revenue inclined 20% to $836 million in the third quarter, while merchant solutions jumped 35% to $2.91 billion. Last month, RBC Capital Markets said it expected Shopify's third-quarter results and fourth-quarter guidance to exceed Wall Street estimates, supported by strong growth momentum and higher-than-expected gross merchandise volume. For the ongoing quarter, Shopify anticipates revenue to grow annually at a low-thirties percentage rate. The Street is looking for a sales gain of 31%. Gross profit dollars are pegged to increase by a high-twenties percentage rate. "With the (fourth-quarter) outlook calling for high-20% gross profit growth, the lack of a near-term reacceleration or potential questions on if they can deliver upside could be weighing on the shares," Truist said in its note. However, the brokerage remains "encouraged" by the company's underlying fundamentals, including free cash flow of $816 million in the third quarter, compared with its forecast of $711 million. Shopify said it expects free cash flow margin in the fourth quarter to be consistent with the 2025 quarter, when it stood at 19%. Last week, e-commerce giant Amazon (AMZN) reported weaker-than-expected third-quarter results as a massive ramp in artificial intelligence spending sent free cash flow deep into negative territory. Online marketplace Etsy's (ETSY) third-quarter revenue exceeded expectations as gross merchandise sales increased and active buyers rose annually for the first time in two years. Price: 142.65, Change: -13.58, Percent Change: -8.69