AI Was Supposed to Kill Wix. Google Just Gave It a Way to Fight Back.

Wix (WIX) has spent most of 2026 stuck on the wrong side of the artificial intelligence (AI) trade. The market decided that once anyone could ask a chatbot to build a website, a website builder wouldn’t be worth much. This hit WIX stock hard. Shares started the year at just over $100 and plummeted to a 52-week low of around $40 by June. Along the way, Wix also cut roughly 20% of its staff. On Aug. 24, however, Wix announced a partnership with Alphabet's (GOOGL) Google, lending the struggling company a potential lifeline.

The deal itself is straightforward. Wix has placed its Wix Harmony builder directly inside Google Gemini as a connected app. Through the integration, a user can now type “@Wix” in the chat, describe the site they want by voice or text, and generate a working website hosted on Wix’s own infrastructure — even with features like commerce, payments, scheduling, and SEO already built in.

The service is now live for Gemini users in eligible markets, and WIX shares climbed on the news. Let's take a closer look.

Wix Turned the Threat Into an Opportunity

The very thing investors feared would bury Wix is now the channel carrying its product to a far bigger audience. Rather than fighting the chatbot, Wix embedded itself within Gemini and became the engine doing the actual building. Gemini handles the conversation, while Wix builds the site, hosts it, and keeps the paying customer. That is a stronger position than trying to win users on Google’s own turf.

However, it is worth noting that, as a connected app, Wix does the work behind the scenes while Google owns the entry point and the first thing users see. Wix gains reach through the partnership but gives up the direct relationship with the customer. Whether that trade works depends on how many Gemini-built sites turn into paying Wix subscribers.

WIX stock has roughly doubled off its June low and recovered strongly since the last earnings report, wherein revenue increased 15% and Wix’s own AI products finally started to contribute meaningfully.

About WIX Stock 

Wix provides a web development platform for creators, delivering services through a Software-as-a-Service model. Its products include website templates, website builders, website designs, an app market, web hosting, domain names, site accessibility, a mobile app builder, and an AI website builder. The company serves individuals, small businesses, entrepreneurs, and enterprises looking to build and manage their online presence. Founded in 2006, Wix is headquartered in Tel Aviv, Israel. 

Over the past year, WIX stock has declined approximately 37%, underperforming SPDR Software & Services ETF’s (XSW) gain of 10% during the same period. The trend has continued this year as well, with the stock falling 16% year-to-date (YTD) while the exchange-traded fund (ETF) has generated returns of 12%. Investors have worried that AI could threaten the company’s traditional website-building business. WIX stock has also faced pressure this year from a first-quarter earnings miss, rising AI-related expenses, and softer-than-expected performance in its Partners segment.

The valuation looks cheap on a sales basis, although the earnings side is messier. The forward price-to-earnings (P/E) ratio isn’t meaningful, since the company is currently loss-making on a GAAP basis as it spends heavily on its AI push. It is still profitable on a non-GAAP basis, so this reflects investment costs rather than a broken business. Meanwhile, the price-to-sales (P/S) ratio of 2.5 times sits below its five-year average of roughly 5 times. This discount suggests the market still hasn’t shaken off AI disruption fears.

The EPS outlook matches the heavy spending now, and the payoff management is betting on later. Analysts expect earnings to fall 93% in fiscal 2026 before swinging hard in fiscal 2027. However, the balance sheet is a concern. Wix holds roughly $961 million in cash against $2 billion in debt, leaving just over $1 billion in net debt. That is a considerable amount for a company worth roughly $5.1 billion. Still, if the earnings rebound arrives like analysts expect, investors betting on the turnaround are being asked to pay very little for it.

Wix Bets on AI as Growth Accelerates 

Wix reported its second-quarter fiscal 2026 earnings on Aug. 4. The company reported revenue of $563.1 million, up 15% year-over-year (YOY). Non-GAAP EPS came in at $1.59, beating the Wall Street consensus estimate. Non-GAAP gross margin was 67%, down from 70% a year earlier. The decline was mainly due to continued investments in Base44 and elevated AI compute costs. Heavy spending on sales and marketing weighed on profitability, with non-GAAP operating income amounting to 12% of revenue.

Looking forward, Wix expects full-year 2026 revenue growth in the low-to-mid-teens percentage range and bookings growth in the low-teens. Management also expects free cash flow margin, excluding acquisition and restructuring costs, to be in the high-teens percentage range. For Q3, the company expects revenue to grow at a low double-digit percentage on a YOY basis. A key part of the outlook is Base44; Wix now expects Base44 gross margin to reach about 60% in the second half of the year. 

What Do Analysts Expect for WIX Stock?

Wedbush recently raised its price target on WIX stock from $55 to $80 while keeping a “Neutral” rating. The firm updated its model following the Q2 results, believing that the company’s profit margins are improving while cash profitability could start improving as well. In addition, Citi maintained a “Hold” rating on WIX stock with a price target of $72. In contrast, B.Riley Securities maintained a “Buy” rating with a price target of $135. 

Wix is currently covered by 24 Wall Street analysts and holds a consensus “Moderate Buy” rating overall. Out of those analysts, 10 have a “Strong Buy” rating, three have a “Moderate Buy” rating, 10 have a “Hold” rating, and one has a “Strong Sell” rating. The mean price target of $82.32 rests just below current levels, while the highest price target of $140 reflects potential upside of 60% from here.