Shopify Stock: Third Quarter Operating Income Light, Revenue Beat

Shopify (SHOP) stock fell after the e-commerce platform provider reported third-quarter earnings and operating income that beat estimates while beating revenue. The company’s sales forecast for the December quarter is in line with expectations amid its expansion into enterprise and international markets.

The e-commerce software maker reported Shopify’s earnings using Generally Accepted Accounting Principles (GAAP) before the market opened. Diluted earnings per share came in at 20 cents versus the consensus estimate of 26 cents amid net unrealized losses in stocks and other investments.

Meanwhile, operating income rose 53% to $434 million versus estimates of $437 million, according to FactSet. Gross profit margin of 48.9% came in below estimates of 49.3%.

Revenue also rose 32% to $2.844 billion. Shopify stock analysts surveyed by FactSet expected revenue of $2.757 billion.

Total merchandise volume exceeds

The company said gross merchandise volume from commercial customers rose 32% to $92 billion versus estimates of $89.12 billion.

At Deutsche Bank, analyst Bhavin Shah praised GMV’s results in a report.

“GMV was impressive with year-on-year growth of 30% in constant currency (32% reported), compared to 29% in Q2 despite the more difficult comparison,” he said. “This likely indicates continued momentum in Europe combined with broader equity gains in the U.S. From a profitability standpoint, operating expenses as a percentage of revenue were below guidance, coupled with improved revenue, resulting in higher operating earnings and free cash flow.”

For the current quarter ending December 30, Shopify said it expects: “Revenue to grow at a mid-to-high 20s percentile year-over-year and gross profit dollars to grow at a low-to-mid-20s percent rate year-over-year.”

Wall Street analysts estimated fourth-quarter revenue growth at 24%.

OpenAI, agent deal

On the stock market today, Shopify stock fell more than 5% to nearly 163 points in afternoon trading. Going by Shopify’s earnings report, shares are up 61% in 2025.

Shopify stock has soared since its “Instant Checkout” partnership with AI leader OpenAI in late September. Shopify Merchants will be able to sell directly through ChatGPT conversations in the US

Heading to the third quarter report, AAnalysts were looking for management comments on the impact of artificial intelligence on online shopping, recent changes in senior management, expectations for the upcoming holiday shopping season, as well as the impact of Trump’s tariffs.

Furthermore, Shopify’s COO Kaz Nejatian as well as Chief Revenue Officer Bobby Morrison recently departed. Shopify has appointed General Counsel Jessica Hertz to the position of COO.

Shopify Stock Technical Ratings

Furthermore, Shopify sets up e-commerce sites for small businesses, partnering with others to handle digital payments and shipping.

Shopify stock carries a composite rating of 96 out of a top 99, according to IBD Stock Screener. The IBD Composite Classification combines five separate special classifications into one easy-to-use classification. The best growth stocks have a Composite Rating of 90 or better.

Meanwhile, Shopify stock carries an Accumulation/Distribution rating of B. This rating analyzes price and volume changes in the stock over the past 13 weeks of trading. (A+ indicates heavy institutional buying; E indicates heavy selling. Think of a grade of C as neutral.)

Follow Reinhardt Krauss on X, formerly Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.

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