A month has gone by since the last earnings report for Wix.com (WIX Quick QuoteWIX - Free Report) . Shares have added about 34.3% in that time frame, outperforming the S&P 500.

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

WIX's Q2 Earnings Beat Estimates

Wix reported second-quarter 2026 non-GAAP earnings of $1.39 per share, down 39% year over year but above the Zacks Consensus Estimate of $1.13.

Revenues rose 15% year over year to $563.1 million and beat the consensus mark of $554 million. Growth reflected strong Base44 performance and continued core Wix expansion.

Total ARR climbed 15% to $1.96 billion, while bookings increased 12% to $569.1 million.

Subscription Growth Stays Firm

Creative Subscriptions revenues increased 15% year over year to $398.4 million. Bookings from the segment advanced 11% to $405.8 million. Continued Base44 strength supported both measures, while Wix Harmony began making an early contribution as the product continued to ramp.

Self Creators' revenues rose 14% to $349.3 million, improving from 12% growth in the prior quarter. Partners' revenues increased 17% to $213.8 million and represented 38% of total revenues. Wix ended the quarter with nearly 317 million registered users.

Wix Expands Business Solutions Momentum

Business Solutions revenues grew 14% year over year to $164.7 million, while segment bookings rose 13% to $163.3 million. Adoption of Google Workspace and the Paid Ads offering boosted the performance.

Transaction revenues advanced 12% to $71.5 million and accounted for 43% of Business Solutions revenues.

Gross payment volume increased 3% to $3.6 billion, while the take rate improved to 1.96%. The wind-down of a commerce subsidiary slowed payment volume growth, and management expects that headwind to persist for four more quarters.

Margins Reflect Elevated AI Spending

The non-GAAP gross margin was 67%, down from 70% a year ago. Creative Subscriptions margin fell to 80% from 85%, reflecting a greater Base44 contribution, while Business Solutions margin remained stable at 33%.

Non-GAAP research and development expenses rose 6% to $104.7 million, or 19% of revenues, as Wix expanded the Base44 team. Selling and marketing expenses jumped 67% to $173.1 million, or 31% of revenues, on heavier Base44 advertising and higher inference costs for free users.

Non-GAAP operating income was $64.8 million, translating into a 12% margin.

Wix Sharpens Base44's Cost Structure

Base44 launched Base 1, its proprietary large language model built for software creation. Management expects greater control over inference technology to shorten product iteration cycles, reduce reliance on external vendors and improve long-term cost efficiency.

Base44's non-GAAP gross margin is expected to reach roughly 60% in the second half of 2026 compared with near zero at the start of the year. Total AI costs are projected at 30-40% of Base44 bookings. The resulting savings are expected to lift consolidated non-GAAP gross margin by about two percentage points in the second half versus the first half.

Base44 also introduced expanded AI Workflows and enterprise governance features, including single sign-on improvements, permissions, connector management and customer-managed databases. Wix Headless added connections to Claude Code, Codex and Base44, extending Wix's business infrastructure to AI-generated front ends.

Cash Flow and Outlook Remain Encouraging

Operating cash flow totaled $55.6 million, while capital expenditures were $2.9 million. Free cash flow came in at $52.6 million. Excluding restructuring costs, free cash flow was $61.2 million, or 11% of revenues. Wix ended June with $960.9 million in cash and equivalents and $1.63 billion in short- and long-term debt.

WIX maintained its 2026 outlook for low- to mid-teens revenue growth, low-teens bookings growth and a high-teens free cash flow margin excluding acquisition and restructuring costs.

Third-quarter revenues are expected to grow at a low-double-digit rate. Management also expects the consolidated non-GAAP operating margin to improve in the second half as lower AI and core Wix marketing costs offset additional Base44 investment.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 124.72% due to these changes.

VGM Scores

Currently, Wix.com has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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 upward for the stock, and the magnitude of these revisions looks promising. 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 is part of the Zacks Computers - IT Services industry. Over the past month, Cognizant (CTSH Quick QuoteCTSH - Free Report) , a stock from the same industry, has gained 13.7%. The company reported its results for the quarter ended June 2026 more than a month ago.

Cognizant reported revenues of $5.48 billion in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $1.37 for the same period compares with $1.31 a year ago.

Cognizant is expected to post earnings of $1.44 per share for the current quarter, representing a year-over-year change of +3.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

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