Shopify’s stock fell 7% following the release of third-quarter financial results that included mixed performance against Wall Street expectations. The e-commerce platform reported adjusted earnings of 49 cents per share, surpassing LSEG estimates of 46 cents. However, overall quarterly revenue of $3.74 billion came in slightly below LSEG estimates of $3.75 billion.
Gross merchandise volume reached $119.15 billion but fell short of StreetAccount expectations of $120.03 billion. Subscription gross profit also missed projections by nearly $20 million, coming in at $661 million compared with StreetAccount estimates of $680.3 million. Subscription revenue of $836 million similarly underperformed analyst expectations of $848.1 million according to FactSet. Merchant-related metrics performed better than anticipated.
The company provided guidance suggesting revenue growth in the “low thirties” range year over year for the fourth quarter, compared with LSEG estimates of 32.1%. Despite the miss on merchandise volume, company president Harley Finkelstein characterized the results as “consistent” and “durable,” noting it marked the 13th consecutive quarter of GMV growth above 20%.
Finkelstein discussed Shopify’s early partnership with Meta’s artificial intelligence agent Muse, which launched during the third quarter. The integration allows the AI agent to browse and purchase items on Shopify’s platform and enables checkout through Shop Pay. When asked about potential pricing pressure from AI agents negotiating on behalf of consumers, Finkelstein stated the company had not observed price reductions. He indicated instead that AI agents were generating new traffic and helping consumers discover previously unknown brands and products.
Looking ahead to the holiday season, Finkelstein acknowledged some economic pressure on consumers but expressed optimism about merchant sentiment and the potential for AI-assisted shopping to reach mainstream adoption, describing it as potentially a breakthrough moment for agentic commerce.
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