Wix.com Ltd. (NASDAQ: WIX) has authorized a two‑year share repurchase program that will allow the company to buy back up to $2 billion of its common stock during fiscal years 2026 and 2027. The board’s approval gives Wix the flexibility to repurchase shares through open‑market transactions or privately negotiated deals, subject to U.S. securities regulations.
The decision follows a period of strong cash‑flow generation. In Q3 2025 Wix reported revenue of $505.2 million, up 14% year‑over‑year, and earnings per share of $1.80, a 23% beat on analyst estimates. The company’s free cash flow has been robust, and its balance sheet remains solid, with a cash position that comfortably supports the new buyback while leaving room for future growth initiatives such as the AI‑powered Base44 platform.
Management cited confidence in the company’s intrinsic value and the desire to return excess cash to shareholders. CEO Avishai Abrahami emphasized that the program reflects Wix’s belief that its shares are undervalued and that the company can generate sufficient cash flow to fund the buyback without compromising investment in AI, marketing, or product development. CFO Lior Shemesh noted that the program will be financed primarily from existing cash and future operating cash flows, with a small portion potentially sourced from additional capital raising if needed.
The $2 billion authorization translates into a significant reduction in outstanding shares. At the current share price, the program could buy back roughly 20 million shares, which would lift earnings per share and potentially support the stock’s valuation. The flexibility to execute purchases opportunistically allows Wix to take advantage of market conditions and avoid timing risks associated with a single large repurchase.
Pre‑market trading on January 28 showed a nearly 7% lift in WIX shares, reflecting investor enthusiasm for the buyback amid a year‑long decline of about 62%. The market reaction was driven by the size of the program and the confidence it signals, especially after the company’s recent earnings beat and the upward revision of its full‑year bookings outlook. Analysts highlighted the program as a positive capital‑allocation move, noting that it aligns with Wix’s strategy of balancing shareholder returns with continued investment in AI and commerce tools.
Looking ahead, Wix’s guidance for 2026 remains optimistic. The company has raised its full‑year revenue outlook to $4.396 billion–$4.400 billion from $4.14 billion–$4.15 billion, and it expects to maintain strong growth in its Business Solutions and Creative Subscriptions segments. The share repurchase program is part of a broader strategy to strengthen the balance sheet, support the share price, and signal confidence in the company’s long‑term prospects.
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