Shopify Reports US$462 Million in Third-Quarter Profit as Revenue Surges 32 Per Cent

Canadian e-commerce giant Shopify Inc. has reported a significant increase in its third-quarter earnings, recording US$462 million in net income as revenue climbed 32 per cent compared with the same period last year.

The Ottawa-based company announced its financial results for the three months ended September 30, 2026, reporting net income of US$462 million, up from US$264 million during the third quarter of 2025.

The latest earnings translated into diluted profit of 36 US cents per share, compared with 20 US cents per share a year earlier. On an adjusted basis, earnings reached 49 US cents per share, increasing from 34 US cents in the corresponding period last year.

Shopify’s quarterly revenue reached US$3.74 billion, compared with US$2.84 billion a year ago, reflecting continued growth in its e-commerce platform and services for businesses.

The company’s subscription solutions generated US$836 million in revenue, rising from US$699 million in the same quarter of 2025. Merchant solutions, which include services supporting businesses that sell through Shopify, contributed approximately US$2.91 billion, compared with US$2.15 billion a year earlier.

Shopify also reported substantial growth in the total value of transactions processed through its platform. Gross merchandise volume reached approximately US$119.1 billion during the quarter, up from US$92 billion in the previous year’s third quarter.

Operating income increased to US$568 million from US$343 million, while gross profit rose to US$1.78 billion, compared with US$1.39 billion a year earlier.

The company generated US$816 million in free cash flow, up from US$507 million in the third quarter of 2025. Its free cash flow margin improved to 22 per cent from 18 per cent over the same period.

Shopify President Harley Finkelstein said the company continued expanding its role in the changing global commerce landscape, highlighting the US$119 billion in gross merchandise volume processed during the quarter.

Chief Financial Officer Jeff Hoffmeister pointed to the company’s 32 per cent revenue growth and improved free cash flow margin as evidence of continued business expansion.

Looking ahead, Shopify expects revenue to increase at a low-thirties percentage rate year over year during the fourth quarter of 2026. The company also anticipates gross profit growth in the high-twenties percentage range.

However, the outlook reflects continued investment in technology, infrastructure and artificial intelligence capabilities as Shopify prepares for the busy holiday shopping season.

The company’s latest results demonstrate the continued expansion of its global e-commerce business, which provides technology and services enabling merchants to establish, manage and grow businesses through online and in-person sales.

Shopify operates in more than 175 countries, serving businesses ranging from independent entrepreneurs to major international brands. Its performance is closely watched as an indicator of activity across the digital commerce sector and the growing role of technology in retail.

Courtesy: ctvnews