Zacks Research Has Positive Outlook for Wayfair Q3 Earnings

Key Points

• Zacks Research raised Wayfair’s Q3 2026 EPS estimate to $0.17 from $0.11 and increased several longer-term earnings forecasts, including FY2026 EPS to $0.72 and FY2027 EPS to $1.59. Despite the improved outlook, Zacks maintained a “Hold” rating.
• Wayfair’s latest quarter exceeded expectations, with EPS of $0.95 versus the $0.90 consensus and revenue of $3.52 billion, up 7.5% year over year. Analysts overall rate the stock “Moderate Buy,” with an average price target of $119.89.
• The company is expanding its physical presence with plans for its 10th store in Florida in 2028, while heavy promotional discounts could pressure margins. Insiders have sold roughly $14.8 million of stock over the past three months, though institutional investors own 89.67% of shares.

Wayfair Inc. (NYSE:W - Free Report) - Stock analysts at Zacks Research upped their Q3 2026 earnings estimates for shares of Wayfair in a research note issued to investors on Monday, August 24th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.17 for the quarter, up from their prior estimate of $0.11. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Wayfair's current full-year earnings is $0.75 per share. Zacks Research also issued estimates for Wayfair's Q4 2026 earnings at $0.43 EPS, FY2026 earnings at $0.72 EPS, Q1 2027 earnings at ($0.01) EPS, Q2 2027 earnings at $0.45 EPS, Q3 2027 earnings at $0.52 EPS, Q4 2027 earnings at $0.63 EPS, FY2027 earnings at $1.59 EPS, Q1 2028 earnings at $0.41 EPS, Q2 2028 earnings at $0.65 EPS and FY2028 earnings at $2.78 EPS.

Wayfair (NYSE:W - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.95 EPS for the quarter, beating the consensus estimate of $0.90 by $0.05. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. The business had revenue of $3.52 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same quarter in the previous year, the business posted $0.87 EPS. The company's quarterly revenue was up 7.5% compared to the same quarter last year.

W has been the subject of a number of other research reports. Weiss Ratings upgraded Wayfair from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 17th. BMO Capital Markets lifted their price target on Wayfair from $105.00 to $115.00 and gave the company a "market perform" rating in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $120.00 price target on shares of Wayfair in a research report on Wednesday, August 5th. JPMorgan Chase & Co. raised their price objective on Wayfair from $105.00 to $108.00 and gave the company an "overweight" rating in a research report on Tuesday, July 28th. Finally, Rosenblatt Securities started coverage on Wayfair in a research note on Thursday, August 20th. They issued a "buy" rating and a $125.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Wayfair has an average rating of "Moderate Buy" and an average price target of $119.89.

Wayfair Stock Down 0.4%

Shares of W stock opened at $104.13 on Thursday. The firm has a market cap of $13.75 billion, a price-to-earnings ratio of -42.33, a PEG ratio of 4.63 and a beta of 2.99. The company's 50 day moving average is $94.88 and its 200 day moving average is $81.58. Wayfair has a 52-week low of $55.60 and a 52-week high of $119.98.

Insiders Place Their Bets

In other news, insider Jon Blotner sold 5,925 shares of the stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $96.29, for a total transaction of $570,518.25. Following the completion of the sale, the insider owned 117,344 shares in the company, valued at approximately $11,299,053.76. This represents a 4.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Niraj Shah sold 69,000 shares of the business's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $103.36, for a total value of $7,131,840.00. Following the transaction, the chief executive officer owned 360,137 shares in the company, valued at approximately $37,223,760.32. This trade represents a 16.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 143,925 shares of company stock valued at $14,834,198. 18.44% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Wayfair

Several hedge funds have recently modified their holdings of the stock. Capital World Investors grew its holdings in shares of Wayfair by 0.6% during the fourth quarter. Capital World Investors now owns 13,457,158 shares of the company's stock valued at $1,351,237,000 after buying an additional 82,584 shares during the last quarter. California State Teachers Retirement System grew its holdings in Wayfair by 9,141.5% during the second quarter. California State Teachers Retirement System now owns 11,068,681 shares of the company's stock worth $1,022,967,000 after acquiring an additional 10,948,909 shares during the period. Vanguard Group Inc. increased its holdings in shares of Wayfair by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 9,634,757 shares of the company's stock valued at $967,426,000 after purchasing an additional 72,707 shares in the last quarter. Renaissance Technologies LLC increased its holdings in Wayfair by 3.5% in the fourth quarter. Renaissance Technologies LLC now owns 5,407,325 shares of the company's stock valued at $542,950,000 after buying an additional 180,558 shares in the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of Wayfair by 8.3% in the 1st quarter. Janus Henderson Group PLC now owns 3,866,708 shares of the company's stock valued at $290,813,000 after purchasing an additional 296,233 shares in the last quarter. Institutional investors and hedge funds own 89.67% of the company's stock.

Key Stories Impacting Wayfair

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Zacks raised most earnings forecasts. The research firm lifted its FY2026 EPS estimate to $0.72 from $0.33, FY2027 to $1.59 from $0.97, and FY2028 to $2.78 from $2.23. Estimates also increased for Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q3 2027, and Q4 2027, signaling stronger expected profitability over the next several years.
• Positive Sentiment: Wayfair plans to open its 10th store. The company expects to launch an 85,000-square-foot location in Altamonte Springs, Florida, in 2028. The expansion supports Wayfair’s omnichannel strategy and could improve brand visibility and customer engagement. Wayfair Marks Major Milestone with Plans for 10th Store
• Neutral Sentiment: Zacks maintained a “Hold” rating. Although its forecast revisions were generally positive, the rating indicates that analysts do not see enough near-term upside to recommend buying the stock aggressively. The current-year consensus EPS estimate remains $0.75.
• Negative Sentiment: One longer-term estimate was reduced. Zacks cut its Q2 2028 EPS forecast to $0.65 from $0.71, highlighting some uncertainty in the pace of future earnings growth.
• Negative Sentiment: Heavy discounting could pressure margins. Recent coverage emphasizes Wayfair’s early Labor Day promotions and discounts of roughly 60% to 72%. These deals may support demand and traffic but could weigh on profitability if sustained.

Wayfair Company Profile

Wayfair Inc NYSE: W is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company's portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.

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