It has been about a month since the last earnings report for Wix.com (WIX Quick QuoteWIX - Free Report) . Shares have lost about 16.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Wix.com due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

WIX's Q1 Earnings Miss Estimates

Wix reported non-GAAP EPS of 68 cents for first-quarter 2026, which missed the Zacks Consensus Estimate of $1.21. The company had reported EPS of $1.55 in the year-ago quarter.

Wix reported first-quarter revenue of $541.2 million, marking a 14% year-over-year increase on the back of healthy revenue growth across key segments. For a company already operating at a large scale, mid-teens growth remains highly commendable, especially considering macroeconomic uncertainties and ongoing geopolitical challenges in Israel. The upside suggests that Wix is successfully monetizing both individual creators and businesses through its commerce, payments and enterprise tools. However, the top line missed the Zacks Consensus Estimate of $543.8 million.

AI has become the central focus of Wix’s strategy. Management announced that the company has developed its own proprietary large language model (LLM), which now powers “Wix Harmony.” WIX described this as the start of a broader suite of Wix-driven AI systems that could become integral to product innovation and profitability. This positioning is significant because the website-building industry is rapidly shifting into an AI-assisted development ecosystem. Companies that only integrate third-party AI tools may struggle to differentiate themselves over time. Wix is aiming to develop proprietary AI moats instead. If successful, this could greatly enhance Wix’s competitive position against rivals and emerging AI-native site builders.

Quarter in Detail

Creative Subscriptions’ revenues (70.6% of total revenues) increased 13% year over year to $382 million. Business Solutions’ revenues (29.4% of total revenues) rose 17% to $159 million.

Annual recurring revenue (ARR) grew 15% year over year to $1.9 billion, demonstrating the resilience of Wix’s subscription-based business model.

Total bookings reached $585 million, up 15% year over year, suggesting that future revenue pipelines remain strong. The standout metric was the nearly 50% year-over-year increase in bookings from the first quarter's new user cohort. Management credited both strong core business performance and meaningful contributions from “Base44,” which appears to be emerging as a major growth initiative.

Creative Subscriptions’ bookings increased 13% to $418.8 million and Business Solutions’ bookings rose 18% to $166.2 million. 

Partners revenue grew 19% to $203.4 million. Management acknowledged a slower-than-expected start in the Partners business, along with productivity disruptions tied to the war in the Middle East.

Region-wise, North America, Europe, Asia and others, and Latin America contributed 61%, 24%, 11% and 4% to first-quarter 2026 revenues, up 12%,9%,16% and 14% year over year, respectively.

At the end of March 31, 2026, registered users were 310 million.

Operating Details

Non-GAAP gross margin was 66% compared with 69% in the prior-year quarter.

Creative Subscriptions segment achieved 80%, and the Business Solutions segment 32%.

Wix reported a non-GAAP operating income of $27.8 million compared with $99.8 million in the year-ago quarter. Non-GAAP operating margin was 5%, down from 21%.

Balance Sheet & Cash Flow

As of March 31, 2026, Wix had cash and cash equivalents of $1.34 billion compared with $311.4 million as of Dec. 31, 2025.

First-quarter cash flow from operations amounted to $78.5 million compared with $145.5 million in the previous-year quarter.

Capital expenditures totaled $3.6 million. Free cash flow was $75 million. Excluding acquisition-related costs, free cash flow would have been $112.3 million, equivalent to 21% of revenue.

A boldest move from Wix this quarter was the completion of its modified Dutch Auction tender offer. In April, the company repurchased approximately 17.5 million shares at $92 each, totaling roughly $1.6 billion. The transaction reduced outstanding shares to approximately 41.8 million as of May 11, 2026. Repurchasing nearly 30% of shares outstanding dramatically boosts future earnings-per-share potential and signals strong management confidence in Wix’s long-term intrinsic value. For long-term investors, this could become highly accretive if Wix maintains double-digit growth while improving AI-driven monetization.

Outlook for 2026 Reaffirmed

Wix maintained its expectation for mid-teens revenue growth, mid-teens bookings growth and high-teens free cash flow margins excluding acquisition costs.

The company also expects second-quarter revenue growth to remain in the mid-teens range.

Certain professional-focused product rollouts have reportedly been delayed, which could temporarily weigh on growth.

Management cautioned that full-year free cash flow margins may land in the high-teens due to reduced interest income after deploying cash toward the tender offer, interest expense from a $500 million credit facility and currency headwinds from a stronger Israeli shekel. Assuming the capital structure before the tender offer is completed and excluding acquisition-related costs, it expects full-year free cash flow margin to remain in the low- to mid-20% range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -137.76% due to these changes.

VGM Scores

At this time, Wix.com has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Wix.com has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Wix.com belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Genpact (G Quick QuoteG - Free Report) , has gained 10.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Genpact reported revenues of $1.3 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $0.98 for the same period compares with $0.84 a year ago.

For the current quarter, Genpact is expected to post earnings of $0.97 per share, indicating a change of +10.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Genpact. Also, the stock has a VGM Score of B.