GoDaddy (NYSE:GDDY) Issues Earnings Results

GoDaddy (NYSE:GDDY) announced 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%.GoDaddy’s revenue was up 6.6% on a year-over-year basis. During the same quarter last year, the company earned $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 Price Performance

NYSE GDDY traded down $5.56 during trading on Thursday, hitting $99.54. 1,924,928 shares of the stock traded hands, compared to its average volume of 2,292,203. The company has a market capitalization of $13.18 billion, a P/E ratio of 15.75, a price-to-earnings-growth ratio of 0.93 and a beta of 0.89. GoDaddy has a 12-month low of $71.59 and a 12-month high of $165.11. The firm has a 50-day simple moving average of $86.64 and a 200-day simple moving average of $88.93. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 15.86.

Insider Buying and Selling at GoDaddy

In related news, CAO Phontip Palitwanon sold 542 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $89.86, for a total value of $48,704.12. Following the completion of the transaction, the chief accounting officer owned 19,995 shares of the company’s stock, valued at approximately $1,796,750.70. This trade represents a 2.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 GoDaddy 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 $752,397.78. Following the completion of the transaction, the chief executive officer owned 521,747 shares of the company’s stock, valued at approximately $46,884,185.42. This trade represents a 1.58% decrease in their position. 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 in the last ninety days. Company insiders own 0.93% of the company’s stock.

Institutional Investors Weigh In On GoDaddy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Coldstream Capital Management Inc. grew its stake in GoDaddy by 4.8% in the third quarter. Coldstream Capital Management Inc. now owns 1,887 shares of the technology company’s stock worth $258,000 after purchasing an additional 86 shares in the last quarter. Main Street Financial Solutions LLC raised its position in GoDaddy by 1.0% during the 2nd quarter. Main Street Financial Solutions LLC now owns 12,136 shares of the technology company’s stock valued at $2,185,000 after purchasing an additional 119 shares in the last quarter. Lido Advisors LLC raised its position in GoDaddy by 6.2% during the 4th quarter. Lido Advisors LLC now owns 2,083 shares of the technology company’s stock valued at $283,000 after purchasing an additional 121 shares in the last quarter. Vontobel Holding Ltd. lifted its holdings in shares of GoDaddy by 2.0% in the 4th quarter. Vontobel Holding Ltd. now owns 6,859 shares of the technology company’s stock worth $851,000 after buying an additional 134 shares during the period. Finally, Brown Brothers Harriman & Co. lifted its holdings in shares of GoDaddy by 145.6% in the 3rd 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. Institutional investors own 90.28% of the company’s stock.

More GoDaddy News

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: GoDaddy reported second-quarter adjusted earnings of $1.83 per share, above estimates of $1.72-$1.69 and up from $1.41 a year earlier. The results indicate solid year-over-year earnings growth and exceeded expectations. GoDaddy Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The company also reported a 17.32% net margin and revenue that surpassed quarterly expectations, reinforcing the favorable operating performance in the latest period. GoDaddy Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Third-quarter revenue guidance of approximately $1.3 billion was broadly in line with consensus. Full-year 2026 revenue guidance of $5.2 billion to $5.3 billion was also generally consistent with estimates, offering no significant upward revision to drive a stronger earnings reaction.
• Negative Sentiment: Investors remain concerned that generative AI could disrupt GoDaddy’s website-building and online-services businesses, while margin sustainability is being questioned as the company invests in growth. These concerns may have outweighed the quarterly earnings beat. GoDaddy Fell on AI Disruption and Margin Concerns
• Negative Sentiment: Rosen Law Firm and Kaplan Fox announced investigations into potential securities-law violations and allegations that GoDaddy may have provided materially misleading business information. The notices do not establish wrongdoing, but they add legal and reputational uncertainty for shareholders. Rosen GoDaddy Securities Investigation

Analyst Ratings Changes

GDDY has been the topic of a number of analyst reports. UBS Group initiated coverage on shares of GoDaddy in a research note on Tuesday, May 5th. They issued a “neutral” rating and a $100.00 price target on the stock. Benchmark decreased their target price on shares of GoDaddy from $195.00 to $185.00 and set a “buy” rating for the company in a 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 report on Thursday, June 18th. Weiss Ratings restated a “hold (c-)” rating on shares of GoDaddy in a report on Tuesday, June 16th. Finally, Wells Fargo & Company upped their price objective on GoDaddy from $77.00 to $83.00 and gave the company an “equal weight” rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $118.43.

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.