GoDaddy (NYSE:GDDY) Releases Earnings Results, Beats Expectations By $0.22 EPS

GoDaddy (NYSE:GDDY) announced its quarterly earnings data on Tuesday. The technology company reported $1.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.58 by $0.22, FiscalAI reports. The company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.27 billion. GoDaddy had a return on equity of 362.29% and a net margin of 17.67%.GoDaddy’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.36 earnings per share.

Here are the key takeaways from GoDaddy’s conference call:

• Airo.ai is being ramped as an “agentic” operating system (25 agents live in beta) with initial monetization, and GoDaddy is launching Agent Name Service (ANS)
• Strong Q4 and full‑year 2025 results: bookings +7%, full‑year Normalized EBITDA margin 32%, free cash flow +19% to ~$1.6B, ARPU +10%, retention >85%, and net leverage ~1.6x, with $1.1B cash and aggressive share buybacks.
• The new go‑to‑market .com promotional path drove higher one‑year domain volume but shifted term mix and reduced upfront bookings and near‑term revenue, creating a Q1 bookings lag and an estimated ~200bps FY26 headwind from the .co expiration, aftermarket exclusion, and the GTM change.
• AI adoption is materially improving internal productivity—management says the majority of new code is AI‑generated and AI sales/care agents are already handling large volumes with healthy conversion—contributing to faster product delivery and margin expansion while AI costs are centrally managed.

GoDaddy Stock Down 14.4%

Shares of GoDaddy stock opened at $78.99 on Thursday. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 41.06. The company has a market cap of $10.67 billion, a P/E ratio of 12.68, a PEG ratio of 0.84 and a beta of 0.94. The firm’s 50 day moving average price is $106.46 and its 200-day moving average price is $125.51. GoDaddy has a 52-week low of $73.06 and a 52-week high of $193.55.

Insider Activity at GoDaddy

In other news, CFO Mark Mccaffrey sold 3,317 shares of the company’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $127.94, for a total transaction of $424,376.98. Following the transaction, the chief financial officer directly owned 66,816 shares of the company’s stock, valued at approximately $8,548,439.04. This represents a 4.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Phontip Palitwanon sold 2,397 shares of the firm’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $128.44, for a total value of $307,870.68. Following the completion of the sale, the chief accounting officer directly owned 17,055 shares of the company’s stock, valued at $2,190,544.20. The trade was a 12.32% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 13,615 shares of company stock valued at $1,743,102 over the last 90 days. Insiders own 0.70% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Brown Brothers Harriman & Co. lifted its stake in shares of GoDaddy by 145.6% during the third quarter. Brown Brothers Harriman & Co. now owns 253 shares of the technology company’s stock worth $35,000 after buying an additional 150 shares during the period. GW&K Investment Management LLC raised its stake in GoDaddy by 57.6% in the 4th quarter. GW&K Investment Management LLC now owns 498 shares of the technology company’s stock worth $62,000 after acquiring an additional 182 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in GoDaddy during the 4th quarter worth about $80,000. CIBC Private Wealth Group LLC grew its stake in GoDaddy by 67.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 610 shares of the technology company’s stock valued at $83,000 after purchasing an additional 245 shares during the last quarter. Finally, Osterweis Capital Management Inc. acquired a new position in shares of GoDaddy in the second quarter valued at about $152,000. Hedge funds and other institutional investors own 90.28% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on GDDY shares. Citigroup dropped their price target on GoDaddy from $214.00 to $195.00 and set a “buy” rating on the stock in a research report on Friday, October 31st. Cantor Fitzgerald lowered their price objective on shares of GoDaddy from $130.00 to $90.00 and set a “neutral” rating for the company in a research note on Wednesday. Evercore set a $95.00 target price on shares of GoDaddy in a report on Wednesday. UBS Group cut their target price on shares of GoDaddy from $145.00 to $105.00 and set a “neutral” rating on the stock in a research report on Wednesday. Finally, Wells Fargo & Company reduced their price target on shares of GoDaddy from $145.00 to $77.00 and set an “equal weight” rating for the company in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, GoDaddy presently has an average rating of “Moderate Buy” and a consensus target price of $143.86.

Key Stories Impacting GoDaddy

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: GoDaddy beat Q4 EPS estimates, showed revenue growth and margin improvement; management gave a constructive cash‑flow outlook for 2026 — evidence the core business still generates profitable growth. Zacks: GDDY Surpasses Q4 Estimates
• Positive Sentiment: Strategic AI partnerships continue (e.g., integration with Salesforce’s agent discovery tools), which supports management’s long‑term product roadmap even if near‑term adoption is uneven. Yahoo Finance: GoDaddy Integrates with Salesforce
• Neutral Sentiment: Analyst views remain mixed — some firms maintain higher long‑term price targets and buy ratings, leaving open upside if execution and AI adoption pick up. (See coverage summary.) Quiver Quant: Coverage & Targets
• Negative Sentiment: Management’s FY‑2026 revenue forecast came in below Wall Street estimates and cited slower-than-expected adoption of AI tools and weaker customer acquisition, which is the principal reason sentiment turned negative. Reuters: Revenue Forecast Below Estimates
• Negative Sentiment: Major analyst firms cut price targets and/or ratings after the print — recent reductions include Wells Fargo to $77, UBS to $105, Cantor Fitzgerald to $90 and RBC to $100 — increasing near‑term selling pressure. ABN: Wells Fargo PT Lowered ABN: UBS PT Lowered ABN: Cantor PT ABN: RBC PT Lowered
• Negative Sentiment: A securities‑fraud investigation has been opened by a law firm probing the company’s disclosures around the Q4 results — this raises legal and reputational risk and can amplify near‑term volatility. Business Wire: Securities Fraud Investigation
• Negative Sentiment: Market reaction: shares hit multi‑year lows amid the guidance miss, analyst cuts and headline risk — momentum and positioning (including notable institutional reweights and insider selling noted in coverage) are weighing on the stock. InsiderMonkey: 2‑Year Low

GoDaddy Company Profile

GoDaddy is a technology company that provides a suite of online services aimed primarily at small businesses, entrepreneurs and individuals looking to establish and grow an online presence. The company’s core activities include domain name registration and aftermarket services, a range of website hosting options, and tools for building, managing and promoting websites. Its product mix is designed to simplify the technical aspects of running a website so customers can focus on their businesses.

Product and service offerings span website builders and managed WordPress hosting, shared and dedicated hosting, e-commerce capabilities, email and productivity solutions, SSL certificates and site security tools, and online marketing and search engine optimization services.

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