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

GoDaddy (NYSE:GDDY) issued its quarterly earnings data on Thursday. The technology company reported $1.83 EPS for the quarter, beating the consensus estimate of $1.69 by $0.14, Zacks reports. GoDaddy had a return on equity of 366.90% and a net margin of 17.32%.

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 Stock Performance

Shares of NYSE:GDDY traded down $5.56 during trading on Thursday, hitting $99.54. The stock had a trading volume of 1,924,928 shares, compared to its average volume of 2,292,203. GoDaddy has a 12-month low of $71.59 and a 12-month high of $165.11. The stock has a market capitalization of $13.18 billion, a price-to-earnings ratio of 15.75, a price-to-earnings-growth ratio of 0.93 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. The stock has a 50-day simple moving average of $86.64 and a two-hundred day simple moving average of $88.93.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Wedbush restated an “outperform” rating on shares of GoDaddy in a report on Tuesday. UBS Group began coverage on shares of GoDaddy in a research note on Tuesday, May 5th. They issued a “neutral” rating and a $100.00 target price for the company. Benchmark dropped their target price on shares of GoDaddy from $195.00 to $185.00 and set a “buy” rating on the stock in a research report on Tuesday, April 28th. JPMorgan Chase & Co. cut their price target on shares of GoDaddy from $154.00 to $124.00 and set an “overweight” rating on the stock in a research note on Thursday, June 18th. Finally, Wells Fargo & Company raised their price target on shares of GoDaddy from $77.00 to $83.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, GoDaddy presently has a consensus rating of “Moderate Buy” and an average target price of $118.43.

Trending Headlines about GoDaddy

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: GoDaddy reported second-quarter 2026 EPS of $1.83, exceeding the consensus estimate of $1.69 by $0.14. The company also reported a 17.32% net margin and 366.90% return on equity, providing a positive earnings surprise. GoDaddy Second-Quarter 2026 Financial Results
• Neutral Sentiment: GoDaddy projected third-quarter 2026 revenue of approximately $1.3 billion, matching analyst expectations, and set full-year revenue guidance at $5.2 billion to $5.3 billion versus a $5.2 billion consensus estimate. The lack of a clearly reported EPS outlook limits the positive impact of the guidance update. GoDaddy Earnings Press Release
• Negative Sentiment: Investor-rights law firms Rosen Law Firm and Kaplan Fox announced investigations into potential securities-law violations and allegations that GoDaddy may have provided materially misleading business information. These announcements add legal and reputational risk, although they do not establish wrongdoing. Rosen GoDaddy Securities Investigation
• Negative Sentiment: Recent fund commentary cited potential AI-driven disruption and margin concerns as factors weighing on GoDaddy’s shares. Those concerns may overshadow the earnings beat by raising questions about the durability of growth and profitability. GoDaddy AI Disruption and Margin Concerns

Insider Transactions at GoDaddy

In related news, CAO Phontip Palitwanon sold 542 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $89.86, for a total value of $48,704.12. Following the sale, the chief accounting officer owned 19,995 shares in the company, valued at $1,796,750.70. This represents a 2.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $87.84, for a total transaction of $30,744.00. Following the completion of the transaction, the director owned 5,708 shares in the company, valued at approximately $501,390.72. This trade represents a 5.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,751 shares of company stock worth $1,480,228 in the last ninety days. Corporate insiders own 0.93% of the company’s stock.

Institutional Investors Weigh In On GoDaddy

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

About GoDaddy

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.