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Shopify shares declined 7% on Tuesday (November 3, 2026) after the e-commerce company reported third-quarter revenue and gross merchandise volume (GMV) below Wall Street expectations. Although earnings beat analyst forecasts, the results raised investor concerns about the pace of growth ahead of the holiday shopping season.
Shopify reported revenue of USD 3.74 billion for the quarter ended September 30, a 32% increase from USD 2.84 billion in the same period last year. However, the figure narrowly missed analysts' expectations of approximately USD 3.75 billion.
The company's GMV, which measures the total value of orders processed through its platform, reached USD 119.15 billion, up 29% year over year. Analysts had expected the figure to be around USD 120 billion.
The revenue shortfall marked a notable change for Shopify, which had maintained a record of beating quarterly revenue estimates in recent periods.
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Despite missing the revenue and GMV forecasts, Shopify delivered stronger-than-expected adjusted earnings. Adjusted earnings stood at 49 cents per share, up from 34 cents in the year-ago quarter and above analyst estimates of around 47 cents.
Subscription Solutions revenue increased 20% to USD 836 million, while Merchant Solutions revenue rose 35% to USD 2.91 billion. The company also reported free cash flow of USD 816 million, up 61% from a year earlier.
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Investors are analyzing Shopify's prospects for the last quarter of 2026. The company projects year-over-year revenue growth in the low-thirties range, while gross profit growth is expected in the high-twenties range.
This prediction reflects that retailers are gearing up for the key period of Black Friday and holiday shopping. Although Shopify continues to post impressive year-over-year gains, the current quarter's results suggest expectations remain high.