London: UK property portal giant Rightmove has announced that while its revenue growth remains steady, its underlying operating profit is expected to slow in the 2026 financial year. The company is entering a significant investment phase, with a particular focus on artificial intelligence (AI), which is likely to constrain near-term profit expansion.
Rightmove Invests in AI and Technology for 2026
Rightmove plans to invest around £18 million in 2026, directed largely toward technological upgrades and AI capabilities. CEO Johan Svanström emphasized that AI is central to the company’s future strategy, stating, “AI is now becoming absolutely central to how we run our business and plan for the future.” These initiatives, though costly in the short term, are intended to enhance the platform’s efficiency and customer experience over the long term.
Rightmove allocates £18 million to AI and technology upgrades to boost long-term efficiency.
Despite the slowdown in profit growth, Rightmove forecasts revenue growth in the range of 8 to 10 percent for 2026, similar to 2025’s performance. However, operating profit is expected to grow by only 3 to 5 percent, down from the 9 percent growth achieved in the first half of 2025. Analysts view this moderation as a temporary effect of the company prioritizing strategic investments over immediate margin expansion.
Revenue growth remains strong, but operating profit growth slows due to strategic investments.
Following the announcement, Rightmove’s share price dropped sharply, reflecting investor concerns over near-term profit pressure. Market analysts noted that while the company’s investments may temporarily suppress margins, they position Rightmove to remain competitive and potentially unlock new revenue streams in the future. Peel Hunt highlighted that the company’s AI-driven strategy could strengthen its long-term market position, while Jefferies warned that investors will monitor closely whether the increased spending translates into sustainable returns.
Share prices dipped, but AI investments are expected to support long-term competitiveness.
Rightmove’s focus on AI and technological upgrades reflects a longer-term vision of maintaining leadership in the UK property portal sector. By investing now, the company aims to generate double-digit profit growth in the years beyond 2026. Management emphasized that the revenue outlook remains robust, signaling that demand for its platform continues to be strong despite slower near-term profit expansion.
Strategic investment in AI underlines Rightmove’s vision for sustained market leadership.
The shift from immediate profit maximization to strategic investment carries both potential and risk. Successful AI deployment could enhance the platform, create new monetization avenues, and reinforce Rightmove’s market dominance. Conversely, if these investments do not yield expected results, the company could face prolonged profit pressure, particularly in a challenging UK property market.
AI deployment is key to platform growth but carries potential risks if returns are delayed.
Investors are advised to focus on Rightmove’s execution of its AI initiatives and the resulting efficiencies. The company’s current approach indicates a clear trade-off: sacrificing short-term profit growth to secure a technologically advanced, competitive platform for the future. The coming quarters will reveal whether this strategy successfully translates into long-term value creation for shareholders.
Short-term profit is traded for long-term technological advantage and shareholder value.