Wix.com (NASDAQ:WIX) Shares Up 14.6% After Earnings Beat

Key Points

• Wix shares surged 14.6% after the company reported quarterly adjusted EPS of $1.39, beating the $1.13 consensus, while revenue rose 14.9% year over year to $563.1 million.
• AI offering Base44 helped drive growth, and Wix maintained its full-year 2026 outlook while announcing a potential strategic partnership with Thryv to expand services for small and midsize businesses.
• Profitability and legal risks remain concerns: Wix reported a negative net margin and return on equity, faces shareholder litigation allegations related to its AI business, and analysts maintain a consensus “Hold” rating with an average price target of $91.10.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s stock price was up 14.6% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $63.69 and last traded at $65.1640. Approximately 1,261,068 shares were traded during mid-day trading, a decline of 44% from the average session volume of 2,242,680 shares. The stock had previously closed at $56.84.

The information services provider reported $1.39 EPS for the quarter, topping analysts' consensus estimates of $1.13 by $0.26. The business had revenue of $563.06 million for the quarter, compared to the consensus estimate of $552.56 million. Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The company's revenue for the quarter was up 14.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.28 EPS.

More Wix.com News

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

• Positive Sentiment: Q2 results exceeded expectations. Wix reported adjusted earnings of $1.39 per share versus the $1.13 consensus estimate, while revenue rose 14.9% year over year to $563.1 million, ahead of the $552.6 million forecast. Wix Reports Second Quarter 2026 Results
• Positive Sentiment: Base44 supported growth. Coverage highlighted strong momentum from Base44, Wix’s AI-focused offering, as a key contributor to the revenue performance and the company’s broader expansion strategy. WIX Q2 Earnings Beat Expectations
• Positive Sentiment: Full-year expectations were maintained. Wix reiterated its fiscal 2026 outlook and provided third-quarter guidance, reducing the risk of an immediate forecast reset after the earnings release. Wix rises after Q2 beat
• Positive Sentiment: Potential SMB partnership. Wix and Thryv announced an intent to form a strategic partnership combining website solutions, unified commerce and payments for small and midsize businesses, potentially broadening Wix’s distribution and monetization opportunities. Thryv and Wix Strategic Partnership
• Neutral Sentiment: AI investment is both an opportunity and a cost. Heavier spending on AI development, computing and marketing is pressuring margins. Although it is helping Base44 growth, investors will watch whether the investment produces sustainable profits.
• Negative Sentiment: Shareholder litigation adds uncertainty. Multiple law firms publicized a securities class action covering investors who purchased WIX shares from February 19, 2025, through May 12, 2026. The allegations center on claims that Wix overstated the competitiveness and financial potential of its AI products while understating rising costs. The reports are largely solicitations for potential plaintiffs, but they add reputational, legal and financial risk. WIX Shareholder Alert
• Negative Sentiment: Profitability remains weak. Second-quarter EPS was below the $2.28 reported a year earlier, and Wix continues to post a negative net margin and negative return on equity, underscoring concerns about the cost of its AI transition.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Bank of America cut their price target on shares of Wix.com from $136.00 to $109.00 and set a "buy" rating on the stock in a report on Tuesday, April 21st. UBS Group lowered their target price on Wix.com from $68.00 to $58.00 and set a "neutral" rating on the stock in a report on Wednesday, June 10th. Oppenheimer dropped their price objective on shares of Wix.com from $115.00 to $85.00 and set an "outperform" rating for the company in a report on Thursday, May 14th. Citigroup cut their target price on Wix.com from $66.00 to $59.00 and set a "neutral" rating for the company in a research note on Tuesday, June 9th. Finally, Citizens Jmp downgraded Wix.com from a "market outperform" rating to a "market perform" rating in a research report on Tuesday, April 7th. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $91.10.

Institutional Trading of Wix.com

Several hedge funds and other institutional investors have recently made changes to their positions in WIX. Farther Finance Advisors LLC increased its position in Wix.com by 122.2% during the 4th quarter. Farther Finance Advisors LLC now owns 240 shares of the information services provider's stock worth $25,000 after purchasing an additional 132 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new position in Wix.com in the fourth quarter valued at approximately $27,000. Geneos Wealth Management Inc. boosted its position in Wix.com by 632.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock worth $41,000 after purchasing an additional 215 shares during the period. Employees Retirement System of Texas boosted its position in shares of Wix.com by 129.9% in the fourth quarter. Employees Retirement System of Texas now owns 446 shares of the information services provider's stock worth $46,000 after buying an additional 252 shares during the period. Finally, Banque Cantonale Vaudoise grew its position in Wix.com by 464.8% in the fourth quarter. Banque Cantonale Vaudoise now owns 497 shares of the information services provider's stock valued at $52,000 after acquiring an additional 409 shares in the last quarter. Institutional investors and hedge funds own 81.52% of the company's stock.

Wix.com Stock Up 14.7%

The firm has a market cap of $3.80 billion, a price-to-earnings ratio of -83.22 and a beta of 0.90. The company has a 50 day moving average of $50.12 and a 200 day moving average of $67.44.

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.

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