---
title: "Earnings Disaster: Why Wall Street Is Dumping Wix Stock"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286271764.md"
description: "Wix.com Ltd. shares plummeted 24% after reporting Q1 2026 results that fell short of Wall Street expectations, with revenue of $541.2 million and adjusted earnings of 68 cents per share. Despite a 14% year-over-year revenue increase, it missed the $544.2 million estimate. The company’s gross margin declined, but it generated $78.5 million in operating cash flow. Wix's CEO expressed confidence in long-term growth, highlighting recent AI developments. The stock reached a new 52-week low at $57.20 during premarket trading."
datetime: "2026-05-13T13:31:14.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286271764.md)
  - [en](https://longbridge.com/en/news/286271764.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286271764.md)
generator: "portal-rs"
---

# Earnings Disaster: Why Wall Street Is Dumping Wix Stock

**Wix.com Ltd.** (NASDAQ:WIX) shares fell sharply in premarket trading Wednesday after the software-as-a-service website builder reported first-quarter 2026 results that missed Wall Street expectations on both revenue and earnings.

## Wix Q1 Results Miss Expectations

The company reported quarterly revenue of $541.2 million, up 14% from a year earlier but below analysts' consensus estimate of $544.2 million. Adjusted earnings came in at 68 cents per share, missing expectations of $1.25 per share.

Total annual recurring revenue rose 15% year over year to $1.9 billion at the end of the quarter.

## Segment Performance Shows Continued Expansion

Creative Subscriptions revenue increased 13% to $382.4 million, while bookings for the segment rose 13% to $418.8 million. Partners revenue climbed 19% to $203.4 million during the quarter.

Business Solutions revenue increased 17% to $158.8 million, and bookings for the segment jumped 18% to $166.2 million.

## Wix Margins, Cash Flow And Balance Sheet

The company's consolidated adjusted gross margin declined 300 basis points to 66%.

Wix generated $78.5 million in operating cash flow during the quarter and ended March 31, 2026, with $1.34 billion in cash and cash equivalents.

## AI Strategy And Product Development

Co-founder and CEO **Avishai Abrahami** said the company remains confident in its long-term growth prospects as innovation accelerates across website and app creation.

Abrahami said Wix recently developed its own large language model to power Wix Harmony, allowing the company to fine-tune the platform using internal data and user feedback. He added that the in-house model gives Wix more control over AI-related costs while reducing reliance on third-party providers.

## Wix Management Commentary And Shareholder Returns

Chief Financial Officer **Lior Shemesh** said bookings from Wix's first-quarter 2026 new user cohort increased nearly 50% year over year, supported by contributions from Base44 and continued strength in the company's core business.

Shemesh also said the company completed its $1.6 billion modified tender offer in April, repurchasing nearly 30% of outstanding shares as part of its shareholder return strategy.

## Outlook And Stock Reaction

For the second quarter, Wix projected revenue growth in the mid-teens. The company also reiterated its full-year 2026 free cash flow margin outlook in the high-teens, excluding acquisition-related costs.

The company reaffirmed its full-year 2026 guidance, expecting bookings and revenue to increase by a mid-teens percentage year over year.

**WIX Price Action:** Wix.com shares were down 24.62% at $57.20 during premarket trading on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

*Photo via Shutterstock*

### Related Stocks

- [WIX.US](https://longbridge.com/en/quote/WIX.US.md)

## Related News & Research

- [WIX Stock Alert: What to Know About the Latest Layoffs at Wix](https://longbridge.com/en/news/287968687.md)
- [13:20 ETWix.com (WIX) Faces Securities Class Action Amid Scrutiny Over Vibe Coding Transition, Competitive and Financial Positioning - Hagens Berman](https://longbridge.com/en/news/298228842.md)
- [Intel (INTC) Stock Looks Above Fair Value After Its 256% Run](https://longbridge.com/en/news/299431661.md)
- [18:50 ETWix.com (WIX) Faces Securities Class Action Amid Scrutiny Over Vibe Coding Transition, Competitive and Financial Positioning - Hagens Berman](https://longbridge.com/en/news/297096003.md)
- [Is Wix.com (WIX) Expensive On Class Action Lawsuits And AI Cost Concerns?](https://longbridge.com/en/news/297408529.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**