Wix.com (WIX) Stock Forecast & Price Target

Wix.com is supported by accelerating fundamentals, with 2Q revenue of $563 million rising 14.9% year over year, bookings up 11.6%, and total ARR reaching $1.96 billion, up 15% year over year. Its outlook is further strengthened by Base44, where the in-house Base1 LLM is expected to lift non-GAAP gross margin to about 60% in 2H26 from near zero entering the year, improving consolidated margin by roughly 2 points while lowering AI inference costs to 30-40% of Base44 bookings. In addition, Self Creators growth accelerated to 14% year over year, Partners revenue still grew 17%, and management maintained low-to-mid-teens revenue growth and high-teens FCF margin guidance, showing both core resilience and expanding operating leverage.

Wix.com is facing a more fragile fundamental setup as growth in Self Creators, Partners, and GPV appears dependent on continued AI-driven momentum while core risks include slower user growth, weaker free-to-premium conversion, and higher churn among SMB customers. Although 2Q showed 14% y/y Self Creators growth and 17% y/y Partners growth, gross margin compression to 80% and S&M rising to 31% of revenue highlight that monetization is becoming more expensive just as AI-related costs and product rollout investments increase. The company’s outlook is also pressured by declining FCF to $53M in Q2, expected GPV headwinds over the next four quarters, and sensitivity to macro weakness, pricing pressure, and execution risk in newer products and channels.