{"id":957248,"date":"2026-11-03T22:12:09","date_gmt":"2026-11-03T22:12:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/957248\/"},"modified":"2026-11-03T22:12:09","modified_gmt":"2026-11-03T22:12:09","slug":"shopify-stock-falls-as-its-quarterly-revenue-misses-analysts-estimates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/957248\/","title":{"rendered":"Shopify stock falls as its quarterly revenue misses analysts\u2019 estimates"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

The Ottawa-based commerce company reported US$3.742-billion in revenue for the three months through September, shy of the analysts\u2019 consensus estimate.Chris Wattie\/Reuters<\/p>\n

Shopify Inc.\u2019s SHOP-T<\/a> revenue growth in the third quarter fell slightly short of investors\u2019 expectations and its share price dropped in trading on Tuesday.<\/p>\n

The Ottawa-based commerce company reported US$3.742-billion in revenue for the three months through September, shy of the analysts\u2019 consensus estimate of US$3.744-billion, compiled by S&P Global Market Intelligence. That\u2019s still up 31.5 per cent year-over-year.<\/p>\n

Shopify has routinely exceeded revenue projections in previous earnings periods. Its share price opened down 12.8 per cent at US$136.21 on the Nasdaq, and was trading at US$143.92 as of 2:37 p.m. ET. <\/p>\n

Shopify posted US$584-million in profit for the quarter, accounting for US$122-million in on-paper losses from the falling valuations of its equity investments. That translated to earnings of US$0.49 a share, slightly ahead of analysts\u2019 estimates.<\/p>\n

\u201cWe delivered exactly what we said we would: consistent, durable growth, yet again,\u201d Shopify president Harley Finkelstein said on an investor call. He cited the firm\u2019s expanded free cash flow margins and increased revenues, as well as the addition of customers such as luxury house Pierre Balmain S.A., Est\u00e9e Lauder Companies Inc.\u2019s Clinique skincare line and apparel brand Lululemon Athletica Inc. as big wins.<\/p>\n

Shopify merchants \u2013 which use its tools and services to run online and physical stores \u2013 sold US$119.1-billion worth of products in the third quarter, as gross merchandise volume grew 29.5 per cent year-over-year. Much of the firm\u2019s revenue is tied to its clients\u2019 sales, since it earns fees for payment processing, shipping, lending and other services. Shopify\u2019s European clients\u2019 business grew particularly fast, although the U.S. remains the firm\u2019s biggest market. <\/p>\n

\u201cExpectations were high,\u201d Kevin Krishnaratne, Bank of Nova Scotia\u2019s director of equity research, software and services, wrote in an investor note Tuesday. He described clients\u2019 increased use of the firm\u2019s payments processing services, as well as Shopify\u2019s free cash flow figures, as positive signals.<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Shopify president Harley Finkelstein, shown in 2022, cited the addition of marquee customers in the quarter as big wins.Sean Kilpatrick\/The Canadian Press<\/p>\n

The company has been preparing for the next wave of shopping, by enabling consumers\u2019 personal AI assistants such as Meta Platforms Inc.\u2019s Muse, Anthropic\u2019s Claude Duet and Instinct to browse merchants\u2019 stores and make purchases. \u201cWhile the volume is still small here, adoption is growing,\u201d Mr. Finkelstein said, noting that AI traffic has more than doubled year-over-year, while automated orders are up more than three-fold.<\/p>\n

Some major retailers like Amazon.com Inc. have blocked AI agents from their sites, claiming they create privacy and security risks. Shopify, by contrast, has tailored its technology to assist them, building a shared catalog of its clients\u2019 products they can consult and ensuring they receive up-to-date inventory and pricing information. \u201cFor merchants, this means reach \u2013 a huge new pool of customers with zero lift for them,\u201d Mr. Finkelstein said.<\/p>\n

Shopify has also deployed AI extensively in its own operations and systems. The firm\u2019s chief executive officer, Tobi L\u00fctke, was an early evangelist<\/a> for AI coding tools. The company\u2019s Sidekick AI assistant helps its clients set up and run their stores. The number of merchants employing the tool on a daily basis was up nearly four-fold in the third quarter compared with a year ago, Mr. Finkelstein said. However, the development of Sidekick and clients\u2019 growing use of it has lowered the margins of Shopify\u2019s subscription sales, CFO Jeff Hoffmeister said. <\/p>\n

The fourth quarter is typically Shopify\u2019s biggest, driven by the Black Friday and Cyber Monday sales periods and holiday shopping. The firm projects revenue will grow at \u201ca low-30s percentage rate\u201d on an annual basis, while holding free cash flow margins steady. That\u2019s slightly above analysts\u2019 consensus. <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: The Ottawa-based commerce company reported US$3.742-billion in revenue for the three months through…\n","protected":false},"author":2,"featured_media":957249,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-957248","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/957248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=957248"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/957248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/957249"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=957248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=957248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=957248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}