01—Abstract
Summary
Summary of the 10-Q filed November 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Shopify Inc. reported a strong third quarter for 2026, demonstrating robust revenue growth across both its subscription and merchant solutions segments.
Total revenues increased by 32% year-over-year to $3.74 billiona, with merchant solutions outpacing subscription solutions in growth. The company continues to prioritize investments in technology, particularly AI, and operational infrastructure to support its expanding merchant base and enhance platform capabilities. Shopify's strategic focus on empowering merchants of all sizes appears to be paying off, as evidenced by the significant increase in Gross Merchandise Volume (GMV) facilitated through its platform.
Financially, the company achieved an operating income of $568 millionb, a substantial improvement from the prior year, reflecting efficient cost management alongside revenue growth. While the company experienced volatility in its equity and other investments, its core business operations remain strong.
Shopify also continues its aggressive share repurchase program, underscoring its commitment to returning capital to shareholders. The company maintains a healthy liquidity position and anticipates continued growth, driven by its expanding ecosystem and merchant-centric solutions.
02—Key points
Key Highlights
- Total revenues grew 32% year-over-year to $3.74 billion for the three months ended September 30, 2026.
- Merchant solutions revenue increased by 35% year-over-year, reaching $2.91 billion, driven by Shopify Payments.
- Subscription solutions revenue grew 20% year-over-year to $836 million, supported by an increase in Monthly Recurring Revenue (MRR) to $230 million.
- Gross Merchandise Volume (GMV) increased by 29% to $119.1 billion for the third quarter of 2026.
- Operating income significantly improved to $568 million, up from $343 million in the prior year's comparable quarter.
- The company repurchased $543 million of its Class A subordinate voting shares during the quarter, with $2.5 billion remaining available under its authorization.
- Research and development expenses increased by 33% to $497 million, reflecting continued investment in platform enhancements and AI.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Shopify kept $0.12.
- Revenue$3.74B100.0%
- Cost of revenue−$1.96B52.4%
- Gross profit$1.78B47.6%
- Operating costs−$1.21B32.4%
- Operating income$568.0M15.2%
- Interest, other & tax−$106.0M2.8%
- Net income$462.0M12.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 3, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.74B$2.84B | +31.6% |
| Cost of Revenue | $1.96B$1.45B | +35.0% |
| Gross Profit | $1.78B$1.39B | +28.0% |
| R&D Expenses | $497.00M$375.00M | +32.5% |
| Operating Expenses | $1.21B$1.05B | +15.7% |
| Operating Income | $568.00M$343.00M | +65.6% |
| Net Income | $462.00M$264.00M | +75.0% |
| EPS (Basic) | $0.36$0.20 | +80.0% |
| EPS (Diluted) | $0.36$0.20 | +80.0% |
| Shares Outstanding (Basic) | 1.29B1.30B | −1.0% |
| Shares Outstanding (Diluted) | 1.29B1.31B | −1.7% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of Shopify in Q3 2026?
Shopify demonstrated strong financial performance in Q3 2026, with total revenues growing 32% year-over-year to $3.74 billion. The company also saw a significant increase in operating income to $568 million, up from $343 million in Q3 2025. This growth was driven by robust performance in both subscription and merchant solutions, alongside increasing Gross Merchandise Volume (GMV).
How is the growth in Merchant Solutions revenue being driven?
Merchant solutions revenue increased by 35% year-over-year to $2.91 billion. This growth is primarily attributed to Shopify Payments, which saw increased revenue from payment processing and currency conversion fees due to a higher penetration rate and an increase in GMV facilitated through the platform.
What is the company's outlook on investments and future growth?
Shopify continues to invest in its platform, with a notable increase in R&D expenses to $497 million, reflecting investments in AI and other emerging technologies. The company's strategy focuses on expanding its merchant base, localizing features, and enhancing its ecosystem and partner programs to catalyze merchant sales growth and maximize long-term value.
What is the status of Shopify's share repurchase program?
Shopify continued its share repurchase program in Q3 2026, buying back $543 million of its Class A subordinate voting shares. The company has an aggregate authorization of $5 billion for share repurchases and had $2.5 billion remaining available as of September 30, 2026.
06—Continue