Wix Cuts Price Target to $90, EPS Misses by 44%, 20% Job Cuts
WIX•Scotiabank trimmed its price objective for Wix.com to $90 from $110 despite projecting an 83.7% upside after Q1 2026 non-GAAP EPS of $0.68 missed estimates by 44%. Operating expenses rose to 35% of revenue from 21%, prompting a 20% workforce reduction and triggering a securities law investigation.
1. Analyst Lowers Price Target
Scotiabank trimmed its price objective for Wix.com to $90 from $110, still implying an 83.7% upside. The downgrade reflects concerns over weakening financial metrics and intensifying competition in the website-building market.
2. Q1 2026 EPS Miss and Stock Reaction
Wix.com reported Q1 non-GAAP EPS of $0.68, missing consensus by 44% and prompting a 27% share drop to a 52-week low. The result underscores challenges in driving revenue growth against escalating costs.
3. Operating Expense Surge
Operating expenses rose to 35% of revenue in Q1 2026 from 21% a year earlier, squeezing profit margins. The surge is attributed to heightened spending on product development and expanded marketing efforts.
4. Workforce Reduction and Legal Investigation
To address cost pressures, Wix.com plans to cut 1,000 jobs, or 20% of its staff, as part of a restructuring initiative. Concurrently, a securities law investigation is examining whether prior statements misrepresented the company’s financial health.
