Israel's Wix slightly beats Q3 revenue estimates, maintains 2026 forecast

Overview

• Israel website platform's Q3 revenue rose 13% yr/yr, slightly beating analyst expectations

• Q3 bookings grew 11% yr/yr to $573 mln, driven by Base44 outperformance

• Company named Nir Zohar as Co-CEO, formalizing existing leadership structure

Outlook

• Wix maintains full-year 2026 revenue growth guidance at low- to mid-teens percentage y/y

• Company expects full-year 2026 bookings growth in low-teens percentage y/y

• Wix now sees 2026 FCF margin ex-acquisition and restructuring costs at ~16%, down from high-teens

Result Drivers

• BASE44 OUTPERFORMANCE - Co said revenue and bookings growth were driven by strong demand for Base44 and accelerated marketing investments

• USER RETENTION - Co said retention of earliest Base44 user cohort at 12-month mark was above expectations, with renewal rates improving across subsequent cohorts

• GROSS MARGIN IMPROVEMENT - Co attributed sequential non-GAAP gross margin increase to cost reductions in AI inference delivered by proprietary Base 1 model

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Wix.com Ltd. is $80.00, about 14.7% above its November 9 closing price of $69.75

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Nov 9 - Israel's Monday.com Q3 revenue rises 19%

• Nov 9 - Israel's Kamada Q3 revenue up 11%, raises forecast

• Nov 9 - Israel's Compugen Q3 revenue doubles on Gilead payments; loss narrows

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)