Shares in Rightmove have dropped by over 14% today after the UK’s largest online property platform lowered its profit guidance.
The company, which is a member of the FTSE 100, has said it will ramp up investment in AI and digital transformation to strengthen long-term growth.
It now expects operating profit to rise between 3% and 5% in 2026, down from an earlier forecast of around 9%, reflecting what it described as “accelerated technology investment to build an even stronger platform”.
Despite the short-term dip in profitability, the business said it remains confident in delivering double-digit profit growth over the longer term as new innovations come to market.
In a trading update posted to the London Stock Exchange, the Milton Keynes-based firm outlined its plans to embed AI across all areas of its business, from property search and valuations to customer engagement and operational efficiency.
It has already integrated several AI-powered tools, including AI keyword search, Style with AI for home design inspiration, as well as an AI-assisted valuation tool for agents and consumers.
Rightmove also announced a multi-year partnership with Google Cloud to leverage the Vertex AI platform and Gemini models.
“AI is now becoming absolutely central to how we run our business and plan for the future,” said chief executive Johan Svanstrom.
“We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers, and see vast potential utilising our leading reach and connected data.
“We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem.”
The company said its investment push aims to “accelerate execution” across several areas, including AI-powered operations, R&D for new growth and consumer innovation such as a redesigned app and smarter search features.
It is the biggest faller so far today on the FTSE 100, with its share price dipping to 562.2p as of 12:26pm.
Rightmove’s market cap currently sits at over £4.3 billion, but shares have dropped by nearly 13% so far in 2025.