Shopify Reports Surge in AI-Driven Traffic and Sales Amid Strong Q3 Results
Key Points
- AI‑driven traffic to Shopify stores is up sevenfold since January.
- Purchases from AI‑powered search have increased elevenfold.
- Shopify partners with OpenAI, Perplexity, and Microsoft Copilot for AI shopping experiences.
- 64% of shoppers say they are likely to use AI when buying.
- Q3 revenue rose 32% to $2.84 billion; profit hit $264 million (20 cents per share).
- Operating income of $434 million missed estimates, prompting a stock dip.
Shopify said traffic from AI tools to its merchants' stores has risen sevenfold since January, while purchases linked to AI-powered search are up elevenfold. The company highlighted AI as a central engine for its platform, citing partnerships with OpenAI, Perplexity and Microsoft Copilot. In its third‑quarter earnings, Shopify posted revenue growth of 32% to $2.84 billion and profit of $264 million, though operating income missed estimates, causing the stock to dip.
AI‑Powered Growth
Shopify CEO and President Harley Finkelstein told investors that AI has become an "incredible tool" for merchants, describing the shift as the biggest technological change since the internet. Traffic from AI agents to Shopify stores is up seven times since the start of the year, and orders generated through AI‑enabled search have risen eleven times in the same period. The company’s AI strategy includes integrating OpenAI’s ChatGPT, working with Perplexity and Microsoft Copilot on in‑chat shopping experiences, and building internal tools like Scout to turn merchant feedback into product decisions. A recent Shopify survey found that 64% of shoppers are likely to use AI when making purchases.
Financial Performance
During the third quarter, Shopify reported revenue of $2.84 billion, a 32% increase year over year, and profit of $264 million, or 20 cents per share. Operating income reached $434 million, narrowly missing analysts’ expectation of $437 million, which contributed to a decline in the company’s stock price following the announcement.
Outlook
Finkelstein emphasized that AI is not merely a feature but a core component of Shopify’s platform, positioning the company to support merchants as AI‑driven commerce evolves. He noted the need to remain adaptable to various permutations of “agentic commerce” and to lay the infrastructure for future AI interactions across shopping experiences.