Shopify Shares Fall as Q3 Revenue and GMV Miss Estimates

Shopify shares fell in Tuesday trading after the e-commerce company posted third-quarter revenue and gross merchandise volume below estimates, despite beating expectations for non-GAAP diluted earnings per share.

Revenue totaled $3.742 billion, up 32% from a year earlier, but below the $3.75 billion estimate. Gross merchandise volume (GMV) reached $119.145 billion, a 29% annual increase, compared with a $120.03 billion estimate. GMV measures the value of orders facilitated through Shopify's platform.

Non-GAAP diluted earnings per share came to $0.49, topping the $0.46 estimate. Subscription revenue was $836 million, below the $848.1 million estimate, while subscription gross profit of $661 million missed the $680.3 million estimate. Merchant revenue and merchant gross profit both beat expectations.

Shopify projected fourth-quarter revenue growth in the low 30% range year over year. The quarter also produced $816 million in free cash flow, a 22% margin, as detailed in earlier coverage of Shopify's revenue and free cash flow.

Shopify President Harley Finkelstein described the GMV results as “consistent” and “durable.” GMV growth had exceeded 20% for 13 consecutive quarters, he said.

The quarter also coincided with Meta's release of its consumer-facing artificial intelligence agent, Muse. Shopify was an early partner, enabling Muse users to browse and buy products from Shopify merchants within the app and check out with Shop Pay. Finkelstein said AI agents were bringing new traffic to Shopify businesses and helping shoppers discover brands and products. He said Shopify had not seen the tools push prices lower as they compare products or negotiate for consumers.

Finkelstein acknowledged economic pressure on consumers ahead of the holiday season but said businesses remained optimistic. He expected AI-assisted shopping to become mainstream during the 2026 holiday season, particularly as personal agents gain prominence.