GoDaddy (NYSE:GDDY) Issues Quarterly Earnings Results, Beats Expectations By $0.14 EPS

GoDaddy (NYSE:GDDY) released its quarterly earnings results 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 net margin of 17.32% and a return on equity of 366.90%.

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 Price Performance

GDDY traded down $5.56 during midday trading on Thursday, hitting $99.54. 1,924,928 shares of the company traded hands, compared to its average volume of 2,292,203. The business has a 50 day simple moving average of $86.64 and a two-hundred day simple moving average of $88.93. GoDaddy has a 52-week low of $71.59 and a 52-week high of $165.11. The company has a market capitalization of $13.18 billion, a price-to-earnings ratio of 15.75, a PEG ratio of 0.93 and a beta of 0.89. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 15.86.

Analyst Upgrades and Downgrades

GDDY has been the topic of several recent analyst reports. Wedbush reissued an “outperform” rating on shares of GoDaddy in a research note on Tuesday. UBS Group started coverage on GoDaddy in a research note on Tuesday, May 5th. They issued a “neutral” rating and a $100.00 price target for the company. Wells Fargo & Company upped their price target on GoDaddy from $77.00 to $83.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. JPMorgan Chase & Co. lowered their price target on GoDaddy from $154.00 to $124.00 and set an “overweight” rating on the stock in a research report on Thursday, June 18th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of GoDaddy in a report on Tuesday, June 16th. One investment 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. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $118.43.

Insider Activity at GoDaddy

In related news, CAO Phontip Palitwanon sold 542 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $89.86, for a total transaction of $48,704.12. Following the completion of the transaction, 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 position. The transaction 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, CEO Amanpal Singh Bhutani sold 8,373 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $89.86, for a total transaction of $752,397.78. Following the completion of the transaction, the chief executive officer directly owned 521,747 shares in the company, valued at $46,884,185.42. This represents a 1.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 16,751 shares of company stock worth $1,480,228 over the last three months. Company insiders own 0.93% of the company’s stock.

Institutional Trading of GoDaddy

Institutional investors have recently made changes to their positions in the company. Invesco Ltd. boosted its stake in GoDaddy by 9.3% during the 4th quarter. Invesco Ltd. now owns 2,209,899 shares of the technology company’s stock worth $274,204,000 after purchasing an additional 187,839 shares during the last quarter. Corient Private Wealth LLC raised its position in shares of GoDaddy by 17.9% in the fourth quarter. Corient Private Wealth LLC now owns 10,215 shares of the technology company’s stock valued at $1,222,000 after buying an additional 1,552 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of GoDaddy by 85.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 30,531 shares of the technology company’s stock worth $3,788,000 after buying an additional 14,053 shares in the last quarter. Delta Global Management LP lifted its stake in shares of GoDaddy by 13.6% in the fourth quarter. Delta Global Management LP now owns 19,624 shares of the technology company’s stock worth $2,435,000 after buying an additional 2,354 shares in the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in GoDaddy during the fourth quarter worth about $218,000. 90.28% of the stock is owned by institutional investors and hedge funds.

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

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.