GoDaddy tops profit estimates as revenue comes in line

GoDaddy Inc. (GDDY) said on Oct. 29 that its third-quarter earnings topped analyst estimates, with $2.08 per diluted share compared with the $1.89 consensus estimate compiled by Finnhub.

Revenue was in line with the $1.35 billion consensus estimate compiled by Finnhub, at $1.34 billion for the quarter.

The domain name registrar's revenue grew 6% from $1.27 billion a year earlier, and net income rose 24% in the period.

Here's how the company did:

• Total revenue: $1,341.8 million vs. $1,265.3 million a year earlier, in line with the $1.35 billion estimate, according to Finnhub
• Diluted EPS: $2.08 vs. $1.51 a year earlier, topping the $1.89 estimate, according to Finnhub
• Net income: $261.8 million vs. $210.5 million a year earlier
• Operating income: $362.5 million vs. $296.7 million a year earlier
• NEBITDA: $449.3 million vs. $408.6 million a year earlier
• Free cash flow: $480.8 million vs. $440.5 million a year earlier

Total bookings rose 6% to $1.4 billion. Operating income grew 22%, and net income grew 24%.

Segment results

Applications and Commerce revenue was $524.3 million, up 9% from $481.0 million a year earlier.

Core Platform revenue was $817.5 million, up 4% from $784.3 million.

International revenue was $435.5 million, up 3% from $422.5 million.

GoDaddy CEO Aman Bhutani said: "Our AI transformation is gaining momentum, and this quarter Airo hit an annualized bookings run rate of over $100 million and began incrementally contributing to our bookings growth." The company said the Airo run rate more than doubled the $50 million shared one quarter earlier.

GoDaddy CFO Mark McCaffrey said: "We are transforming GoDaddy with the financial discipline that has long defined us, and our third quarter results reflect that."

2026 guidance

The company expects to finish toward the higher end of its full-year revenue range of $5.215 billion to $5.255 billion. That range is unchanged from the one it gave on July 30.

The midpoint implies 6% growth over the $4.951 billion of revenue generated in 2025.

Within total revenue, the company expects full-year Applications and Commerce growth of approximately 10% and Core growth of approximately 4%.

The company reaffirmed its NEBITDA margin target of over 33% and its free cash flow target of approximately $1.8 billion, against $1.6 billion generated in 2025.

Third-quarter revenue came in above the $1.315 billion to $1.335 billion range the company gave on July 30.

Cash and capital returns

Year to date through Oct. 26, the company repurchased 15.7 million shares for $1.4 billion. That reduced fully diluted shares outstanding by 12% gross since the start of the year.

Net cash provided by operating activities was $487.7 million, up 10% from a year earlier.

As of Sept. 30, the company had $1.1 billion in cash and cash equivalents, $3.8 billion in total debt and $2.7 billion in net debt.

Total customers reached 20.5 million, up 40 thousand during the quarter and 75 thousand since Dec. 31, 2025.

The company also expanded its Developer Platform with agent-friendly APIs for hosting, professional email and commerce.

Investor Night

The company will hold an in-person Investor Night on Dec. 1, 2026, at its Tempe, Arizona headquarters. Leaders will discuss strategy and AI transformation and refresh select financial targets.

Interested shareholders and analysts can request an invitation by emailing investors@godaddy.com, according to the company's 8-K.