Shopify (NYSE:SHOP) reported third-quarter results that surpassed Wall Street forecasts, with both revenue and operating income topping expectations as the company said its merchants are “built for” the upcoming holiday shopping season.
The Canadian e-commerce platform’s merchant base continued to show resilience despite headwinds from U.S. tariffs that have added uncertainty to production, sourcing, and pricing dynamics. These tariffs have raised concerns about potential spending slowdowns among consumers wary of higher prices.
For the quarter ended September 30, revenue surged 32% year-over-year to $2.84 billion, beating analyst estimates of $2.76 billion and slightly outpacing the 31% growth recorded in the previous quarter.
Gross merchandise value (GMV) — a measure of total sales made through Shopify’s platform — climbed 32% to $92.01 billion, exceeding expectations of $88.87 billion. Operating income reached $343 million, also ahead of the $311.4 million forecast.
Total operating expenses came in at $1.05 billion, broadly in line with expectations. Shopify has been investing heavily in AI-powered tools to help merchants streamline operations, from website creation to sales tracking and automated marketing content generation.
“Retail’s busiest season is here, and, as always, Shopify merchants are built for it,” said Harley Finkelstein, President of Shopify.
Looking ahead, Shopify expects fourth-quarter revenue growth in the mid-to-high 20% range year-over-year, with gross profit anticipated to expand at a low-to-mid 20% pace. Operating expenses are projected to represent 30–31% of revenue, compared to just under 37% in the third quarter, according to Investing.com estimates.
Despite strong fundamentals, Shopify shares were down over 3% in premarket trading on Tuesday, though the stock has still gained more than 60% year-to-date.