Rightmove shares tumbled as much as 25% on Friday after it warned of a profit cut to fund huge investment in AI.

It forecast underlying operating profit growth of 3% to 5% next year, down from 4% to 9% for 2024 and 2025. 

For next year it wants to introduce more AI to “re-platform” its operational back-end infrastructure, introducing AI interfaces “to drive efficiency, speed and value.”

Chief executive Johan Svanstrom told shareholders: “AI is now becoming absolutely central to how we run our business and plan for the future.

“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.”

However, the portal’s share prices fell sharply at the stock market opening on Friday, recovering somewhat during the day but still ending some 12.5% down.

Agents might be tempted to take heart from this but despite the anticipated fall in profits Rightmove says it expects up to 10% revenue growth in 2026.

The portal tells shareholders that so far this year it’s been pleased with what it describes as “continued strong engagement metrics” with more user-uptake of its home-moving tools, and rapid agent take-up of a new package called Optimiser Edge.

It’s also recorded substantial growth in Commercial Property, Mortgages and Rental Services.