Wix.com Ltd. (NASDAQ:WIX) Price Target Cut by Scotiabank Following Q1 Earnings Miss

• Scotiabank maintained an "Outperform" rating but significantly lowered its price target for Wix.com Ltd. from $135.00 to $110.00.
• Wix.com Ltd. reported disappointing Q1 2026 results, missing analyst expectations with revenue of $541.20 million and adjusted earnings per share of $0.68, well below the anticipated $1.25.
• Despite a negative market reaction and a drop in adjusted gross margin to 66%, Wix.com Ltd. reaffirmed its full-year 2026 financial goals, emphasizing growth in AI-driven products.

Wix.com Ltd. (NASDAQ:WIX) is a company that provides a cloud-based platform for creating websites. It allows users to build and manage their online presence without needing complex coding skills. The company currently has a market capitalization, which is the total value of all its shares, of approximately $2.97 billion.

On May 14, 2026, investment firm Scotiabank maintained its "Outperform" rating for Wix.com Ltd. This rating suggests the bank believes the stock will perform better than the overall market. However, Scotiabank also lowered its price target for the stock to $110.00 from $135.00, while the stock was trading at $53.97.

The revised forecast follows the company's disappointing first-quarter 2026 results. Wix.com Ltd. reported revenue of $541.20 million, which was a 14% increase from the previous year but missed analyst expectations. More significantly, its adjusted earnings per share of $0.68 were well below the anticipated $1.25 per share, as highlighted by Benzinga.

The market reacted negatively to the news, with shares of Wix.com Ltd. falling as much as 32% after the announcement, as noted by The Motley Fool. The company's adjusted gross margin, a measure of profitability on its sales, also fell to 66% from 69% a year earlier, adding to investor concerns.

Despite the weak quarter, Wix.com Ltd. reaffirmed its financial goals for the full year 2026. The company still projects mid-teens percentage growth in both revenue and bookings. It also pointed to progress in its AI-driven products, such as the new Wix Harmony, as a source of long-term value.