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

Wix.com (NASDAQ:WIX) announced its quarterly earnings results on Tuesday. The information services provider reported $1.39 earnings per share for the quarter, beating analysts’ consensus estimates of $1.13 by $0.26, FiscalAI reports. Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The firm had revenue of $563.06 million during the quarter, compared to analysts’ expectations of $552.56 million. During the same period in the previous year, the company earned $2.28 earnings per share. Wix.com’s quarterly revenue was up 14.9% compared to the same quarter last year.

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 Trading Up 10.2%

Shares of NASDAQ:WIX traded up $5.83 during midday trading on Tuesday, hitting $62.67. 831,245 shares of the stock were exchanged, compared to its average volume of 2,239,335. The company has a 50 day moving average price of $50.12 and a 200-day moving average price of $67.44. Wix.com has a twelve month low of $40.16 and a twelve month high of $190.93. The stock has a market cap of $3.65 billion, a P/E ratio of -80.11 and a beta of 0.90.

Wix.com News Summary

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Wix reported adjusted earnings of $1.39 per share, above the $1.13 consensus estimate, while revenue of $563.06 million surpassed the $552.56 million forecast. Revenue rose 14.9% year over year, supporting the view that the core business continues to grow. Wix.com Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management reiterated its 2026 outlook and announced a potential SMB partnership. Wix and Thryv plan to combine website, commerce and payment capabilities for small and midsize businesses. The proposed relationship could expand distribution and strengthen Wix’s position in integrated SMB software, although it remains an intention rather than a completed deal. Thryv and Wix Strategic Partnership
• Neutral Sentiment: Profitability remains a concern. Although Wix beat the quarterly EPS estimate, earnings declined from $2.28 per share a year earlier. The company also posted a negative net margin, and analysts expect a small full-year loss, limiting the positive impact of the earnings beat.
• Negative Sentiment: Multiple law firms are promoting a securities class action. The lawsuit covers investors who purchased shares between February 19, 2025, and May 12, 2026, following a reported 27% share-price decline after the Q1 results. Attorneys allege Wix made misleading disclosures related to AI, Base44 cost pressures and its business outlook; these are allegations, not findings of wrongdoing. The lead-plaintiff deadline is in September. Wix Securities Class Action Notice
• Negative Sentiment: AI disruption fears remain an overhang. Investors continue to question whether AI-powered “vibe coding” tools could pressure Wix’s website-building business, contributing to the stock’s substantial decline from its prior peak despite the latest revenue growth.

Analysts Set New Price Targets

A number of analysts have weighed in on WIX shares. Morgan Stanley cut Wix.com from an “overweight” rating to an “equal weight” rating and decreased their price objective for the stock from $112.00 to $60.00 in a research report on Tuesday, July 21st. Wells Fargo & Company dropped their target price on Wix.com from $47.00 to $46.00 and set an “equal weight” rating on the stock in a report on Thursday, July 16th. Bank of America cut their price target on Wix.com from $136.00 to $109.00 and set a “buy” rating for the company in a research note on Tuesday, April 21st. Oppenheimer decreased their price target on Wix.com from $115.00 to $85.00 and set an “outperform” rating for the company in a report on Thursday, May 14th. Finally, Benchmark lowered their price objective on shares of Wix.com from $115.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday, July 29th. Eleven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $91.10.

Institutional Trading of Wix.com

Institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP grew its holdings in Wix.com by 90.4% during the 3rd quarter. Wellington Management Group LLP now owns 3,390,589 shares of the information services provider’s stock valued at $602,270,000 after buying an additional 1,609,989 shares during the last quarter. Senvest Management LLC raised its holdings in shares of Wix.com by 20.9% in the fourth quarter. Senvest Management LLC now owns 3,008,480 shares of the information services provider’s stock worth $312,551,000 after acquiring an additional 519,805 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Wix.com by 879.0% in the second quarter. Ameriprise Financial Inc. now owns 2,031,591 shares of the information services provider’s stock worth $321,926,000 after acquiring an additional 1,824,070 shares during the last quarter. Morgan Stanley lifted its position in shares of Wix.com by 32.3% in the fourth quarter. Morgan Stanley now owns 1,046,381 shares of the information services provider’s stock valued at $108,709,000 after acquiring an additional 255,226 shares in the last quarter. Finally, Durable Capital Partners LP purchased a new stake in shares of Wix.com in the third quarter valued at $183,286,000. Hedge funds and other institutional investors own 81.52% of the company’s stock.

Wix.com Company Profile

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.