Wix (NASDAQ:WIX) shares fell about 30% after the company reported mixed first-quarter 2026 results, with revenue largely in line with expectations but earnings coming in well below estimates.
Revenue for the quarter was $541.2 million, up 14% year over year and slightly below the $43.9 million consensus estimate.
Adjusted earnings per share were $0.68, missing the $1.21 expected.
Total bookings rose 15% year over year to $585.0 million, modestly under estimates of $586.8 million.
Annual recurring revenue (ARR) increased 15% to $1.903 billion.
By segment, Creative Subscriptions revenue grew 13% to $382.4 million, while Business Solutions revenue rose 17% to $158.8 million.
Transaction revenue climbed 19% to $70 million, and Partners revenue increased 19% to $203.4 million.
Wix said its Partner segment saw some near-term softness, but highlighted continued momentum in its AI-driven roadmap, including progress on initiatives such as Harmony and Base44.
Despite the Q1 miss, the company maintained its full-year 2026 outlook for mid-teens percentage growth in both bookings and revenue.
“As innovation in the web and app building space has accelerated over the past few quarters, my conviction in its long-term value and Wix’s market positioning remains strong,” Wix CEO Avishai Abrahami said in a statement.
Jefferies analysts highlighted that Base44 adoption continued to accelerate during Q1, with ARR rising to about $150 million in May from roughly $100 million in early March, while AI product Harmony showed strong early traction and improved paid conversion.
The firm noted that Q1 results were broadly steady on revenue and bookings growth, though Partner segment weakness persisted as Wix increased investment in sales and marketing to support its AI initiatives.
Jefferies added that higher spending tied to Base44 expansion and Harmony marketing weighed on margins, even as it viewed the AI product cycle as supportive of longer-term growth.
The firm maintained a ‘Buy’ rating, citing a favorable risk-reward profile at what it described as a valuation near a multi-year trough.