Wix.com (NASDAQ:WIX) Announces Quarterly Earnings Results, Beats Estimates By $0.26 EPS

Wix.com (NASDAQ:WIX) posted its quarterly earnings data on Tuesday. The information services provider reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.26, FiscalAI reports. The firm had revenue of $563.06 million during the quarter, compared to analysts’ expectations of $552.56 million. Wix.com had a negative net margin of 8.19% and a negative return on equity of 4.03%. Wix.com’s revenue was up 14.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.28 EPS.

Here are the key takeaways from Wix.com’s conference call:

• Q2 growth remained solid: bookings increased 12% year over year and revenue rose 15%, with Self-Creators revenue accelerating to 14% growth and continued strength in Base44. Management maintained its full-year outlook for low-teens bookings growth, low-to-mid-teens revenue growth, and high-teens free-cash-flow margin.
• Base1 materially improved Base44’s economics. Wix said its proprietary LLM is already handling significant traffic, delivering better results for Base44 use cases at lower cost and lifting expected Base44 non-GAAP gross margin from roughly 0% early in 2026 to approximately 60% in the second half.
• Wix plans to reinvest the Base1-driven gross-margin savings into elevated Base44 sales and marketing to capture market share, accepting a moderately longer TROI period. This should support growth, but limits near-term operating-margin expansion.
• Partners remained a pressure point: Partners revenue grew 17%, in line with prior expectations, while GPV growth was only 3%, partly reflecting the wind-down of low-monetization subsidiary Inkfrog. Management also acknowledged that partner migration between Wix Studio and Base44 is still early and that the durability of Base44 annual renewals has not yet been demonstrated.
• Management said Base44 demand remains elevated, with newer cohorts outperforming prior cohorts, improving adoption of annual plans, and roughly 60% of users building business-oriented applications. Wix believes product improvements and user-driven referrals can support continued conversion, retention, and market-share gains.

Wix.com Stock Down 5.2%

Wix.com stock traded down $3.33 during midday trading on Thursday, hitting $61.24. 580,444 shares of the stock were exchanged, compared to its average volume of 2,246,648. The stock has a market capitalization of $3.57 billion, a PE ratio of -17.34, a P/E/G ratio of 114.58 and a beta of 0.90. The company has a fifty day simple moving average of $50.57 and a two-hundred day simple moving average of $67.16. Wix.com has a 52 week low of $40.16 and a 52 week high of $190.93.

Key Wix.com News

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Wix reported Q2 revenue of approximately $563 million, up 15% year over year, while adjusted EPS of $1.39 exceeded the $1.13 consensus estimate. The company maintained its 2026 outlook for low- to mid-teens revenue growth and a high-teens free-cash-flow margin, supporting the post-earnings rally. Why Wix.com Stock Is Up Today
• Positive Sentiment: Base44, Wix’s AI coding platform, is showing stronger demand and could reach roughly 60% non-GAAP gross margin in the second half of 2026 after the rollout of Wix’s proprietary Base 1 model reduced inference costs. Analysts also raised targets, including Benchmark to $90 and Cantor Fitzgerald to $80, while Needham reaffirmed a buy rating. Wix targets Base44 gross margin
• Neutral Sentiment: Recent analysis highlights a sharp one-month rebound driven by Self Creators growth, Base44 demand and Wix’s discounted valuation. However, increased marketing investment is delaying operating leverage, while softness among Partners and the need to execute on AI products raise the risk that growth may not sustain the rally. WIX growth outlook
• Negative Sentiment: Several law firms publicized a securities class action filed against Wix and certain officers, alleging investors were harmed by disclosures concerning AI competitiveness, Base44 costs, Wix Harmony and developer-customer losses. The allegations have not been proven, but the repeated notices may weigh on sentiment and add potential litigation risk; the lead-plaintiff deadline is September 22, 2026. Wix class action filed
• Negative Sentiment: Investors remain concerned that Wix is still reporting a negative net margin and that AI-related spending and reinvestment could limit near-term profitability despite the improved Base44 outlook. These concerns help explain why the stock is retreating after its earnings-driven surge.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Barclays lowered their price objective on Wix.com from $155.00 to $100.00 and set an “overweight” rating for the company in a research report on Thursday, May 14th. Royal Bank Of Canada boosted their price target on shares of Wix.com from $45.00 to $60.00 and gave the stock a “sector perform” rating in a research note on Wednesday. JPMorgan Chase & Co. cut their price objective on shares of Wix.com from $86.00 to $62.00 and set an “underweight” rating on the stock in a report on Thursday, June 18th. Bank of America lowered their target price on shares of Wix.com from $136.00 to $109.00 and set a “buy” rating for the company in a report on Tuesday, April 21st. Finally, Oppenheimer dropped their target price on shares of Wix.com from $115.00 to $85.00 and set an “outperform” rating for the company in a research report on Thursday, May 14th. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Wix.com has an average rating of “Hold” and an average target price of $91.10.

Institutional Investors Weigh In On Wix.com

Several hedge funds have recently bought and sold shares of WIX. Corient Private Wealth LLC grew its holdings in shares of Wix.com by 43.3% in the 4th quarter. Corient Private Wealth LLC now owns 6,541 shares of the information services provider’s stock valued at $680,000 after buying an additional 1,978 shares during the period. Alberta Investment Management Corp bought a new stake in shares of Wix.com in the fourth quarter worth about $1,039,000. Mackenzie Financial Corp increased its holdings in shares of Wix.com by 61.2% in the fourth quarter. Mackenzie Financial Corp now owns 16,773 shares of the information services provider’s stock worth $1,731,000 after acquiring an additional 6,366 shares in the last quarter. Sphera Management Technology Funds Ltd raised its position in shares of Wix.com by 92.3% during the fourth quarter. Sphera Management Technology Funds Ltd now owns 25,000 shares of the information services provider’s stock worth $2,597,000 after purchasing an additional 12,000 shares during the period. Finally, Numerai GP LLC bought a new position in shares of Wix.com during the 4th quarter valued at about $1,285,000. 81.52% of the stock is currently owned by institutional investors and hedge funds.

About Wix.com

Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company’s software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.

Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.