GoDaddy (NYSE:GDDY) Announces Quarterly Earnings Results, Beats Estimates By $0.14 EPS

GoDaddy (NYSE:GDDY) issued its quarterly earnings data on Thursday. The technology company reported $1.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.14, Zacks reports. The firm had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.29 billion. GoDaddy had a return on equity of 366.90% and a net margin of 17.32%.GoDaddy’s revenue was up 6.6% on a year-over-year basis. During the same period in the previous year, the firm posted $1.41 earnings per share.

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

• Airo adoption accelerated sharply, with its annualized bookings run rate rising fivefold to $50 million from $10 million last quarter. Growth has been predominantly organic, with strong engagement, free-to-paid conversion, and customer satisfaction.
• GoDaddy delivered solid Q2 results, including 7% revenue growth to $1.3 billion, a normalized EBITDA margin expansion of more than 200 basis points to 33.4%, and $443 million in free cash flow. The company reaffirmed full-year free cash flow guidance of approximately $1.8 billion and expects full-year EBITDA margins above 33%.
• The transition to Airo is pressuring traditional Applications and Commerce products, including Do It For You services and template-based website builders. Management said these products are being de-emphasized or folded into Airo, while Airo’s lower-priced subscription-and-token model may take time to offset the lost bookings.
• GoDaddy narrowed its 2026 revenue outlook to $5.215 billion-$5.255 billion, or 6% growth at the midpoint, and expects third-quarter revenue growth of about 5%. Applications and Commerce bookings are projected to grow at a high-single-digit rate for the rest of the year, while the timing of Airo’s full contribution remains uncertain.
• The company continues to benefit from strong customer economics and capital returns: more than half of customers use at least two paid products, retention exceeds 85%, ARPU rose 9% to $250, and GoDaddy repurchased $852 million of shares year to date, reducing diluted shares outstanding by 7%.

GoDaddy Trading Down 18.7%

Shares of GDDY traded down $18.59 on Friday, hitting $80.74. 3,708,738 shares of the stock traded hands, compared to its average volume of 2,301,515. GoDaddy has a 1 year low of $71.59 and a 1 year high of $165.11. The stock’s 50 day moving average is $86.79 and its two-hundred day moving average is $88.83. The firm has a market capitalization of $10.69 billion, a P/E ratio of 12.67, a P/E/G ratio of 0.95 and a beta of 0.89. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 15.86.

GoDaddy News Roundup

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: GoDaddy reported second-quarter 2026 adjusted earnings of $1.83 per share, ahead of the $1.69 consensus estimate, while revenue rose 6.6% year over year to $1.30 billion, slightly exceeding expectations. GoDaddy second-quarter financial results
• Positive Sentiment: Management forecast third-quarter revenue of $1.315 billion to $1.335 billion and reaffirmed its approximately $1.8 billion free-cash-flow target. Airo, GoDaddy’s AI-powered product, reportedly reached roughly $50 million in annualized recurring revenue, supporting margin and cash-flow expansion. GoDaddy Q3 forecast and free-cash-flow target
• Neutral Sentiment: Analyst views remain mixed. Cantor Fitzgerald reiterated a “neutral” rating with a $90 price target, while Benchmark maintained a “buy” rating but reduced its target to $140 from $185. Raymond James lowered its rating from “strong buy” to “outperform” and set a $100 target, citing limited visibility. Raymond James rating change
• Negative Sentiment: Investors viewed the outlook as underwhelming even though quarterly results beat estimates. Full-year revenue guidance of $5.2 billion to $5.3 billion and third-quarter guidance near $1.3 billion were broadly in line with expectations, offering limited upside for a stock facing elevated growth expectations. GoDaddy Q2 outlook report
• Negative Sentiment: Bearish sentiment was reinforced by unusually heavy put-option activity, with put volume approximately five times its average. Commentary also highlighted investor concerns that generative AI could pressure GoDaddy’s traditional domain and website services and weigh on margins. GoDaddy AI disruption and margin concerns
• Negative Sentiment: Separate law-firm announcements concerning investigations into potential securities-law violations add an overhang, although these notices do not establish wrongdoing. GoDaddy securities investigation announcement

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on GDDY. Weiss Ratings restated a “hold (c-)” rating on shares of GoDaddy in a research report on Tuesday, June 16th. Benchmark lowered their price objective on shares of GoDaddy from $185.00 to $140.00 and set a “buy” rating on the stock in a research note on Friday. B. Riley Financial dropped their target price on shares of GoDaddy from $190.00 to $170.00 and set a “buy” rating for the company in a report on Friday. Wells Fargo & Company cut their target price on shares of GoDaddy from $83.00 to $80.00 and set an “equal weight” rating for the company in a research report on Friday. Finally, William Blair cut shares of GoDaddy from an “outperform” rating to a “market perform” rating in a research note on Friday. Nine investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $111.93.

Insider Activity

In other news, CEO Amanpal Singh Bhutani sold 8,373 shares of GoDaddy stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $89.86, for a total value of $752,397.78. Following the completion of the sale, the chief executive officer owned 521,747 shares of the company’s stock, valued at $46,884,185.42. The trade was a 1.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Sigal Zarmi sold 350 shares of the company’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $87.84, for a total value of $30,744.00. Following the completion of the transaction, the director owned 5,708 shares of the company’s stock, valued at $501,390.72. The trade was a 5.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,751 shares of company stock valued at $1,480,228 over the last quarter. Insiders own 0.93% of the company’s stock.

Institutional Trading of GoDaddy

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its stake in shares of GoDaddy by 117.5% during the 4th quarter. AQR Capital Management LLC now owns 2,989,931 shares of the technology company’s stock valued at $370,991,000 after acquiring an additional 1,615,005 shares during the last quarter. Two Sigma Investments LP grew its holdings in GoDaddy by 99.7% in the third quarter. Two Sigma Investments LP now owns 1,631,100 shares of the technology company’s stock valued at $223,183,000 after purchasing an additional 814,360 shares during the period. UBS Group AG grew its holdings in GoDaddy by 43.2% in the third quarter. UBS Group AG now owns 1,259,460 shares of the technology company’s stock valued at $172,332,000 after purchasing an additional 379,926 shares during the period. Worldquant Millennium Advisors LLC acquired a new position in GoDaddy during the second quarter worth approximately $59,116,000. Finally, Amundi raised its stake in GoDaddy by 25.7% during the fourth quarter. Amundi now owns 1,598,493 shares of the technology company’s stock worth $198,341,000 after purchasing an additional 326,734 shares during the period. Hedge funds and other institutional investors own 90.28% of the company’s stock.

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.