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Shopify Beats on Q3 Sales, Raises Holiday Outlook as Shares Slip

An EPS shortfall alongside margin questions drove a negative early stock reaction.

Overview

  • Revenue reached $2.84 billion versus $2.76 billion expected, with operating income of $343 million topping forecasts.
  • Gross merchandise value rose about 32% to roughly $92 billion, and gross profit climbed 24% to $1.3 billion.
  • Management guided fourth-quarter revenue growth in the mid to high twenties and gross profit growth in the low to mid twenties, both above consensus.
  • U.S.-listed shares fell roughly 3.5% to 4% after results, with GAAP EPS of $0.20 missing the $0.25 estimate.
  • Recent leadership changes include the exits of COO Kaz Nejatian and CRO Bobby Morrison and the appointment of Jessica Hertz as COO, while Q4 results will reflect a PayPal-related revenue-recognition shift and investors track new AI features including the OpenAI Instant Checkout integration.