10-Q · April 30, 2026
GoDaddy reported Q1 2026 total revenue of $1.27 billion, up 6.1% year-over-year, with an EPS of $1.60, exceeding estimates. The Applications and Commerce segment experienced an 11.6% revenue increase, while the Core…
Earnings analysis · 10-Q
GDDY earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
GoDaddy delivered a strong third quarter, with revenue up 6.0% year over year to $1,341.8 million, operating margin expanding to 27.0%, and net income rising 24.4% to $261.8 million. Applications and Commerce was the…
Read full summary
GoDaddy delivered a strong third quarter, with revenue up 6.0% year over year to $1,341.8 million, operating margin expanding to 27.0%, and net income rising 24.4% to $261.8 million. Applications and Commerce was the primary growth engine, while Core Platform grew more slowly and saw a 10-basis-point margin decline. Operating cash flow reached $1,401.7 million for the first nine months, supporting $1,311.0 million of share repurchases, though leverage, the new securities lawsuit, and expanding AI and gTLD execution risks remain important offsets.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.08
What stood out
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Revenue growth remained solid
Q3 revenue was $1,341.8 million, up $76.5 million or 6.0% from $1,265.3 million a year earlier. Revenue also increased approximately 3.2% from $1.3 billion in Q2 2026.
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Operating leverage accelerated
Operating income rose 22.2% year over year to $362.5 million, expanding operating margin to 27.0% from 23.4%, a 360-basis-point improvement. Sequentially, margin increased 60 basis points from 26.4%.
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Earnings exceeded expectations
Net income increased 24.4% year over year to $261.8 million from $210.5 million, while reported diluted EPS was $2.08 versus $1.88 consensus and $1.83 in Q2 2026.
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A&C led segment growth
Applications and Commerce revenue grew 9.0% to $524.3 million, driven by continued adoption of subscription products. Segment EBITDA increased 11.9% to $246.0 million and margin expanded 120 basis points to 46.9%.
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Core Platform continued to grow
Core Platform revenue increased 4.2% to $817.5 million, supported by $26.2 million of growth in domain registration and add-on revenue and $14.3 million of growth in aftermarket revenue.
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Cash generation funded buybacks
Nine-month operating cash flow increased 14.1% to $1,401.7 million from $1,228.8 million, driven by higher bookings. Nine-month cash used in investing was $39.1 million, while financing cash use was $1,322.0 million, including $1,311.0 million of share repurchases.
What to watch
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New securities litigation
The company disclosed a putative securities class action filed on August 21, 2026, alleging misleading statements regarding customer acquisition strategy and promotional pricing. The proposed class period covers September 3, 2025 through February 24, 2026, and the parties must negotiate a draft schedule by November 4, 2026.
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Agentic AI execution and liability
AI-related risk exposure has expanded as GoDaddy deploys generative and agentic AI. The filing cites risks including unauthorized actions, errors, hallucinations, bias, privacy and intellectual-property claims, while AI-related regulation remains unsettled across jurisdictions.
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New gTLD investment risk
The 2026 ICANN new gTLD round received over 1,600 applications, and GoDaddy incurred registry-rights application fees that contributed to a $19.9 million increase in investing cash use. Delays, unsuccessful applications or lower-than-expected demand could reduce future domain growth.
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Material debt burden
Leverage remains material: borrowings under the 2029 and 2031 Term Loans were $1.4 billion and $977.5 million, respectively, at September 30, 2026. Although the company had $1.2 billion available under its Revolver and remained covenant-compliant, debt service limits financial flexibility.
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Aggressive capital return
The company repurchased 14.6 million shares for $1,311.0 million during the first nine months of 2026. Continued buybacks may constrain liquidity or increase leverage if operating cash flow weakens.
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Core growth and margin pressure
Core Platform EBITDA margin declined 10 basis points year over year to 32.9% despite 4.2% revenue growth, reflecting $19.6 million of incremental cost of revenue. Slower Core growth and modest margin contraction could weigh on consolidated expansion.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management states that existing cash and cash generated from operations should cover anticipated operating cash needs for at least the next 12 months; full-year outlook was provided separately in the earnings release.
Earlier filings 4
10-Q · October 31, 2024
GoDaddy reported quarter revenue of $1,147.6 million, up approximately 7.3% year-over-year, with operating income of $253.8 million (up 51.9%) and net income of $190.5 million (up 45.4%). Both segments contributed to…
10-Q · November 4, 2022
GoDaddy reported Q3 revenue of $1,033.2 million, up 7.2% year-over-year, driven by customer growth, higher ARPU and acquisitions. Operating income was $129.7 million (12.5% operating margin), down 1.2% vs. prior year,…
10-Q · August 4, 2022
GoDaddy reported Q2 revenue of $1,015.5 million, up 9.0% year-over-year, with operating income rising to $124.6 million (12.2% of revenue) and net income doubling to $90.5 million (up 93.0%). Both operating cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.