SHOP Shopify reported a strong quarter with revenue up 32% year over year to $2.84 billion and Gross Merchandise Volume rising 32% to $92 billion, both above expectations. Merchant Solutions led growth, jumping 38%, while Subscription Solutions increased 15%. Adjusted EPS was $0.34, matching estimates, though GAAP net income fell due to a prior year investment gain. Gross margin slipped to 49% from 52% as Shopify ramped up spending on AI infrastructure, data centers, and talent to support tools like the Sidekick assistant an investment that signals strong adoption but near-term cost pressure. Q4 guidance remains solid, with revenue expected to grow in the mid-to-high twenties. Despite a minor stock dip, Shopify continues to gain market share and deepen merchant engagement, with investors now focused on when its heavy AI investments will start delivering returns
