$SHOP · SHOPIFY INC.
Shopify reported Q3 FY2026 results: revenue of $3.742B (+32% YoY), GAAP net income of $462M ($0.36/share), non-GAAP net income of $638M ($0.49/share), and free cash flow of $816M (22% margin). GMV reached $119.1B (+29% YoY). Q4 guidance calls for low-thirties revenue growth, high-twenties gross profit dollar growth, and free cash flow margin consistent with Q4 2025.
- Revenue of $3.742B grew 32% YoY (32% constant currency), with Merchant Solutions up 35% to $2.906B.
- GMV reached $119.1B, up 29% YoY (30% constant currency); MRR rose to $230M from $193M.
- GAAP net income was $462M ($0.36/share diluted), up from $264M ($0.20/share) in Q3 2025.
- Free cash flow hit $816M with a 22% margin, up from $507M and 18% margin a year ago.
- Q4 guidance: revenue growth at low-thirties percentage YoY, gross profit growth at high-twenties, free cash flow margin flat with Q4 2025.
Extended-hours trading shows SHOP at $133.39, down 14.61% from the $156.22 regular close and 15.30% below the $157.49 filing-time price. Despite strong headline revenue and profit growth, the after-hours selloff suggests the market is punishing either the Q4 gross profit growth guidance (high-twenties vs. 32% revenue growth implying margin compression) or the flat free cash flow margin outlook.
A $202B e-commerce platform growing revenue 32% and generating 22% free cash flow margins still got punished 14.6% after-hours — the market is laser-focused on the margin compression embedded in Q4 guidance.
Shopify's $119B GMV and 32% revenue growth reinforce its position as the dominant independent commerce platform, but the after-hours reaction mirrors broader market skepticism toward high-multiple tech names where guidance nuance overshadows beat-and-raise quarters.
Q4 guidance implies gross profit dollar growth (high-twenties) lagging revenue growth (low-thirties), signaling margin compression. Forward-looking risks cited include tariffs, AI adoption uncertainty, consumer spending shifts, and third-party provider dependencies.