OTTAWA, November 4, 2025 – Shopify (SHOP) posted third-quarter revenue above estimates and forecast strong holiday-season growth, though shares fell four percent in premarket trading.
The upbeat guidance signals confidence in the critical fourth-quarter shopping period that typically drives significant merchant activity on the e-commerce platform.
Key Takeaways
- Q3 revenue hit 2.84 billion, beating 2.76 billion estimate
- Q4 growth forecast in mid-to-high twenties percentage range
- Revenue surged 32 percent year-over-year from merchant growth
Strong Quarter Performance
The Canadian e-commerce platform reported total revenue of 2.84 billion for the third quarter ended September, compared with analyst estimates of 2.76 billion 1. Revenue rose 32 percent from 2.16 billion in the same quarter last year, driven by strong merchant growth across the platform 6.
Operating income reached 343 million during the quarter, reflecting improved operational efficiency 7. The company exceeded its own guidance of mid-to-high twenties percentage growth while also topping Wall Street expectations 8.
Holiday Season Outlook
Shopify expects revenue to rise in the mid-to-high twenties percentage range in the fourth quarter, compared with analysts’ average estimates 3. The forecast reflects anticipated strength during the crucial holiday shopping season when e-commerce activity typically peaks.
The company’s upbeat projection comes as merchants prepare for Black Friday, Cyber Monday, and Christmas shopping periods that historically generate substantial transaction volumes on the platform. Canadian e-commerce company Shopify issued an upbeat forecast for the holiday shopping season, saying it expects revenue to grow by a mid-to-high twenties percentage range 9.
Market Context
Despite beating expectations, Shopify shares declined four percent in premarket trading, suggesting investors may have expected even stronger results or guidance 7. The stock movement reflects common market dynamics where companies face elevated expectations following strong performance trends.
The e-commerce sector has shown resilience as businesses continue investing in digital commerce capabilities. Shopify’s platform serves merchants ranging from small businesses to large enterprises, providing tools for online sales, payment processing, and inventory management.
Growth Drivers
The revenue increase came as merchant solutions and subscription revenues both contributed to the strong quarterly performance. The company has been expanding its ecosystem of services to capture more value from each merchant relationship.
Shopify continues benefiting from the ongoing shift toward digital commerce, particularly among small and medium-sized businesses seeking comprehensive e-commerce solutions. The platform’s growth reflects broader trends in retail technology adoption and online marketplace expansion.
Not investment advice. For informational purposes only.
References
1(November 4, 2025). “Canada’s Shopify forecasts upbeat holiday-quarter revenue”. Reuters. Retrieved November 4, 2025.
2(November 4, 2025). “Canada’s Shopify Forecasts Upbeat Holiday-Quarter Revenue”. US News. Retrieved November 4, 2025.
3(November 4, 2025). “Canada’s Shopify forecasts holiday-quarter revenue largely above estimates”. Economic Times. Retrieved November 4, 2025.
4(November 4, 2025). “Canada’s Shopify forecasts upbeat holiday-quarter revenue”. Investing.com. Retrieved November 4, 2025.
5(November 4, 2025). “Canada’s Shopify forecasts upbeat holiday-quarter revenue”. MSN. Retrieved November 4, 2025.
6(November 4, 2025). “Shopify reports third-quarter revenue up 32 per cent from year ago”. MarketScreener. Retrieved November 4, 2025.
7(November 4, 2025). “Shopify (SHOP) Stock: Investors Sell Despite Beating Q3 Expectations”. Blockonomi. Retrieved November 4, 2025.
8(November 4, 2025). “Shopify Beats 3Q Outlook Fueled by Strong Merchant Growth”. MarketScreener. Retrieved November 4, 2025.
9(November 4, 2025). “Earnings live: Spotify stock jumps on strong results, Palantir and Uber stocks fall”. Yahoo Finance. Retrieved November 4, 2025.