# Shopify earnings: revenue up 32% to $3.74B, stock falls

> Shopify beat its own outlook with a 22% free cash flow margin and guided to low-thirties growth in Q4, yet shares fell about 10% on November 3.

URL: https://claudegpt.si/news/shopify-q3-2026-earnings-revenue-32  
Published: 2026-11-03T14:50:04.056Z  
Author: ClaudeGPT Si Newsroom  
Section: AI News  
Topics: Shopify, Earnings, Tech stocks, E-commerce  
Publisher: ClaudeGPT Si

## Key takeaways

- Shopify's Q3 2026 revenue rose 32% to $3,742 million and GMV rose 29% to $119.1 billion.
- Free cash flow was $816 million, a 22% margin, and GAAP diluted EPS was $0.36.
- Shopify guided Q4 revenue growth at a low-thirties rate, and SHOP traded about 9.8% lower at 14:48 UTC on November 3.

Shopify earnings for the third quarter of 2026 showed revenue of $3.74 billion, up 32% from a year earlier, in its [results released on November 3](https://www.shopify.com/investors/press-releases/shopify-sustains-rapid-growth-revenue-32-and-free-cash-flow). The stock fell anyway: Yahoo Finance showed SHOP down about 9.8% at $140.93 at 14:48 UTC on November 3, during the trading session.

The company grew faster than it told investors to expect and kept its free cash flow margin near the top of its range. The sell-off is a reminder that a stock priced for perfection can drop on a good quarter.

## The numbers: revenue, profit and cash

Figures are for the quarter ended September 30, 2026, from Shopify's release. Gross merchandise volume (GMV) is the total value of orders sold on its platform.

| Measure | Q3 2026 | Q3 2025 | Change |
| --- | --- | --- | --- |
| Revenue | $3,742M | $2,844M | 32% |
| GMV | $119,145M | $92,013M | 29% |
| Monthly recurring revenue | $230M | $193M | |
| Gross profit | $1,781M | $1,391M | 28% |
| Operating income | $568M | $343M | 66% |
| Free cash flow | $816M | $507M | 22% margin vs 18% |
| Net income (GAAP) | $462M | $264M | |
| Diluted EPS (GAAP) | $0.36 | $0.20 | |
| Diluted EPS (non-GAAP) | $0.49 | $0.34 | |

Net income excluding equity investments, a non-GAAP figure that strips out gains and losses on stakes Shopify holds, was $584 million, up from $367 million. Shopify ended the quarter with $1.87 billion in cash and equivalents and $2.86 billion in marketable securities.

For comparison, its [Q3 outlook](https://claudegpt.si/news/shopify-earnings-date-q3-2026) called for revenue growth at a low-thirties rate and a free cash flow margin in the high teens to low twenties. Revenue growth landed at 32%, and the margin at 22%.

## Why the stock fell

Shopify's release doesn't explain the move, and the company hasn't said anything on it. A report summarized by Techmeme, attributed to the Wall Street Journal, notes that revenue of $3.74 billion was a hair under the $3.75 billion analysts expected, even though net income and earnings per share came in higher. That is a Wall Street Journal report relayed by an aggregator, not something we confirmed, and it may not be the whole story. Shopify shares were also down about 16% over the previous five sessions, according to Yahoo Finance, before today's drop.

## The fourth-quarter outlook

Shopify guided for the fourth quarter as follows:

- Revenue growth at a low-thirties percentage rate year over year.
- Gross profit dollars growing at a high-twenties rate.
- Operating expenses at 29% to 30% of revenue.
- Stock-based compensation of $155 million.
- A free cash flow margin in line with the fourth quarter of 2025.

CFO Jeff Hoffmeister said the company "extended our track record of consistent execution." President Harley Finkelstein pointed to the $119 billion in GMV and the aim of building commerce "into every surface, every agent."

## What to watch next

The next marker is Shopify's fourth-quarter report, when it will show whether growth held in the low thirties during the holiday quarter. The Shopify filing on SEC EDGAR will carry the full financial statements. This article reports what happened and is not investment advice.

## Sources

- [Shopify Sustains Rapid Growth with Revenue Up 32% and Free Cash Flow Margin of 22%](https://www.shopify.com/investors/press-releases/shopify-sustains-rapid-growth-revenue-32-and-free-cash-flow), Shopify
- [Shopify Inc. (SHOP) quote](https://finance.yahoo.com/quote/SHOP), Yahoo Finance