Scotiabank Cuts Wix.com's Price Target to $110 After Q1 EPS Miss
Scotiabank cut its Wix.com price target to $110 from $135 after Q1 2026 revenue of $541.2 million and adjusted EPS of $0.68 missed expectations by 46%. Shares plunged over 30% as gross margin declined to 66%, though full-year mid-teens revenue growth and AI product progress were reaffirmed.
1. Price Target Revision
Scotiabank maintained its Outperform rating for Wix.com while lowering the 12-month price target from $135 to $110, reflecting concerns over the company’s recent financial performance. The revision came as the stock traded near $54, amplifying investor scrutiny on valuation risks.
2. Q1 2026 Financial Miss
Wix.com reported Q1 revenue of $541.2 million, up 14% year-over-year but below analyst forecasts, and delivered adjusted EPS of $0.68 versus the $1.25 expected. The company’s adjusted gross margin fell to 66% from 69% a year earlier, triggering a share price decline of over 30%.
3. Reaffirmed Guidance and AI Strategy
Despite the weak quarter, Wix.com reaffirmed its full-year targets for mid-teens percentage growth in both revenue and bookings. Management highlighted ongoing development of AI-driven offerings, such as the Wix Harmony platform, as a key driver for long-term value creation.