Shopify Inc (TSX:SH., NYSE:SHOP) on Tuesday reported third quarter 2025 revenue that exceeded Wall Street expectations, but its operating income missed the consensus estimate due to increased spending on AI.
The e-commerce platform provider’s revenue for the quarter rose 32% year over year to $2.844 billion, surpassing the analyst consensus estimate of $2.757 billion provided by FactSet.
Shopify posted operating income for the period of $434 million, falling short of the $437 million Wall Street forecast as the company saw a 25.5% increase in operating expenses due to spending on research and development of AI features and upgrades for its platform.
As well, the company recorded Gross Merchandise Volume (GMV) for the quarter, which represents the total value of products sold on the platform, that improved 32% to $92.01 billion.
For the holiday quarter, Shopify said it expects revenue to grow at a mid- to high-20s percentage rate on a year-over-year basis and gross profit dollars to grow at a low- to mid-20s percentage rate on a year-over-year basis.
Analysts had been expecting Q4 revenue growth of 24%.
US-listed shares of Shopify slipped 1.5% to $170.26 in early trading on Tuesday.