Abstract

Wix.com will report fiscal second-quarter 2026 results Pre-Market on August 4, 2026; investors are watching revenue mix, margin resilience, and execution on restructuring and AI-enabled product initiatives.

Market Forecast

The market projects fiscal Q2 revenue of 554.91 million US dollars, up 13.84% year over year, with adjusted EPS of 1.22 US dollars, down 29.57% year over year, and EBIT of 59.13 million US dollars, down 46.01% year over year; margin forecasts were not disclosed. The main business remains anchored by Creative Subscriptions, while near-term bookings and revenue commentary has been tempered by restructuring and partner-channel softness. The most promising growth vector sits in Business Solutions and AI-linked offerings; last quarter Business Solutions delivered 158.81 million US dollars, and total company revenue grew 14.26% year over year, with management indicating low-to-mid-teens growth pacing for Q2 and fiscal 2026.

Last Quarter Review

In fiscal first-quarter 2026, Wix.com reported revenue of 541.17 million US dollars, a gross profit margin of 65.30%, GAAP net profit attributable to the parent company of -57.47 million US dollars, a net profit margin of -10.62%, and adjusted EPS of 0.68 US dollars, reflecting a 56.13% year-over-year decline. Despite healthy gross margin, elevated operating and related costs resulted in a GAAP loss; on a sequential basis, net profit declined by 42.83%. The main business mix was led by Creative Subscriptions at 382.36 million US dollars (70.65% of revenue) and Business Solutions at 158.81 million US dollars (29.35% of revenue), while overall revenue rose 14.26% year over year.

Current Quarter Outlook

Creative Subscriptions

Creative Subscriptions remains the revenue foundation this quarter, and the market will scrutinize user growth, conversion trends, and pricing discipline after the first-quarter adjusted EPS miss and lowered growth commentary. The positive factor is that gross margin has held at 65.30%, which supports cash generation when operating expenses are contained, but the company has signaled that partner-channel weakness and restructuring could weigh on bookings and near-term revenue. The quarter’s reported margin will be influenced by how efficiently Wix.com executes the 20% headcount reduction and the strategic refocus of projects and subsidiaries, with investors looking for signs that cost savings are translating into EBIT and EPS. Management’s communication around churn, ARPU, and monetization across the core editor and subscriptions stack will be central to assessing whether Creative Subscriptions can sustain low-to-mid-teens revenue growth, consistent with company-level guidance. With EPS modeled down 29.57% year over year for Q2, signs of expense containment and optimized marketing spend are essential to stabilizing bottom-line delivery without sacrificing growth in the subscription base.

Business Solutions and AI-Linked Initiatives

Business Solutions and the AI-enabled ecosystem are positioned as the growth lever, with last quarter’s 158.81 million US dollars baseline augmented by new capabilities designed to capture emerging workflows. The newly introduced “Wix Headless” aims to bring Wix’s full business infrastructure—hosting, SEO, analytics, and integrated commerce tools—to AI coding tools and vibe platforms, removing friction between AI-generated frontends and operational backends. Integration with Microsoft 365 Copilot, enabling users to generate Wix Harmony websites within their daily productivity environment, could widen the funnel for Business Solutions adoption and lift attach rates if execution is smooth. Analysts have highlighted that AI-native offerings carry higher compute and sales-and-marketing intensity; this quarter’s EBIT and cash flow cadence will therefore hinge on how Wix.com balances growth investments and unit economics. With consensus modeling EBIT down 46.01% year over year, investors will look for evidence that usage and conversion in Business Solutions can offset expense intensity and that the product pipeline is delivering durable revenue, not just trial spikes. Management’s broader guide for low-to-mid-teens revenue growth frames expectations for Q2, and updates around expansion of merchant tools, payments, and back-office integrations will be watched for incremental trajectory signals.

Stock-Price Drivers This Quarter

The stock’s reaction on August 4, 2026 will be driven by the gap between reported results and the 554.91 million US dollars revenue and 1.22 US dollars adjusted EPS forecasts, as well as management’s qualitative guidance for the second half of fiscal 2026. A major swing factor is the visibility on restructuring benefits relative to the costs recognized around Q2, including how quickly the 20% workforce reduction flows through to operating expense run-rate and EBIT. Investors also want clarity on partner-channel dynamics after commentary of incremental weakness; any signs of stabilization or acceleration could influence the multiple, given the channel’s role in higher-quality customer acquisition. The market will parse narrative and metrics around AI-linked offerings—especially adoption of Wix Headless and the Microsoft 365 Copilot integration—to judge whether these tools are becoming sustained revenue drivers rather than experimental add-ons. Finally, free cash flow guidance and margin trajectories matter: prior disclosures indicated high-teens FCF margin aspirations and a target of approximately 420 million US dollars free cash flow in fiscal 2026 excluding acquisition and restructuring costs, so updates to those markers will shape expectations for capital discipline and valuation re-rating potential.

Analyst Opinions

Bullish opinions form the majority view across recent institutional commentary. Evercore ISI reaffirmed a Buy rating, with analyst Robert Coolbrith maintaining a 160.00 US dollars price target, emphasizing product progress and the potential for margin recovery as operating discipline improves. B. Riley Securities’ Naved Khan reiterated a Buy with a 180.00 US dollars target, focusing on the medium-term earnings power from Business Solutions and AI-enabled capabilities, contingent on controlled compute and marketing spend. Scotiabank maintained a Sector Outperform rating and adjusted its price target to 90.00 US dollars, reflecting confidence in mid-teens bookings and revenue growth over fiscal 2026 while acknowledging expense headwinds that temporarily temper free cash flow conversion.

From a consensus perspective, bullish analysts largely accept near-term pressure on EBIT and EPS but frame it as the cost of repositioning for a more automated, AI-integrated future state. Their core thesis centers on three elements: first, the durability of the subscriptions base provides a predictable revenue floor; second, Business Solutions and AI-linked products offer optionality for higher ARPU and diversified monetization; third, restructuring and sharper operating discipline can expand margins over time even if Q2 bears elevated expense recognition. The constructive view argues that successfully bridging AI-generated frontends into fully operational businesses through Wix-managed infrastructure creates a larger addressable monetization footprint for payments, marketing tools, and back-office software. It also argues that integration pathways like Microsoft 365 Copilot can embed Wix.com into existing enterprise and SMB workflows, potentially improving acquisition efficiency and retention metrics.

These bullish perspectives are not without caveats they themselves flag—complexity in AI-cost curves and partner-channel noise can strain short-term visibility—but they expect management to articulate concrete progress on run-rate savings and to demonstrate traction in Business Solutions beyond early adopter surges. For the quarter, the majority of supportive analysts will likely judge success by three items: reported revenue near the 554.91 million US dollars consensus, evidence that expense alignment is tracking toward a lower operating baseline into the back half, and tangible proof points that AI-linked offerings are moving from pilot deployments to monetizable production usage. If Wix.com can pair low-to-mid-teens revenue growth with credible steps toward margin expansion and free cash flow compounding, bullish institutions anticipate a pathway for sentiment repair and eventual multiple stabilization despite the modeled 29.57% year-over-year decline in adjusted EPS this quarter.