Shopify shares drop 9% after missing third-quarter estimates

Shares of Shopify fell approximately 9% on Nov. 3, 2026, following the company's release of its third-quarter financial results. While the e-commerce platform surpassed analyst expectations for adjusted earnings, it failed to meet consensus estimates for both revenue and gross merchandise volume.

The company reported revenue of $3.74 billion, representing a 32% increase year-over-year, though this figure fell short of the $3.75 billion consensus estimate. Gross merchandise volume reached $119 billion, missing the anticipated $120 billion mark. Additionally, subscription revenue came in at $836 million, below the projected range of $848.1 million to $850.2 million.

Despite the missed revenue targets, Shopify reported an adjusted earnings per share of $0.49, which outperformed the analyst consensus of $0.46 to $0.47. Chief Financial Officer Jeff Hoffmeister highlighted the company's performance, noting a 32% revenue growth and a 22% free cash flow margin as evidence of consistent execution.

Looking ahead to the fourth quarter of 2026, the company projects revenue growth in the low-thirties percentage range on a year-over-year basis. Shopify also expects gross profit dollars to grow in the high-twenties percentage range, with operating expenses projected to account for 29% to 30% of revenue.

Shopify President Harley Finkelstein emphasized the company's long-term focus, stating that the firm intends to continue building commerce infrastructure while prioritizing long-term development over day-to-day market fluctuations.