Wix.com's (WIX) lowered forecast for Q2 and 2026 reinforces the view that artificial intelligence headwinds are hitting the web design space, RBC Capital Markets said in a Tuesday research note.

With the company lowering its revenue guidance for Q2 and 2026 to low/mid-teens from mid-teens growth on account of incremental weakness in the partner business, RBC said that this seems to be a case of the partners' own business headwinds versus displacing Wix's tools with AI-native alternatives.

Even as Wix.com maintained its free cash flow margin outlook of high-teens, aided by a 20% headcount reduction, RBC said it struggles to see a path to stabilization given the cross currents and competitive landscape.

RBC lowered its price target on the company to $45 from $60 and maintained its sector perform rating.

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