GoDaddy’s Third-Quarter Revenue Hits $1.34 Billion; Company Expects to Near Upper End of 2026 Guidance
Key Facts
GoDaddy reported revenue of $1.34 billion in the third quarter of 2026 and adjusted earnings per share of $2.08, Reuters reported, with revenue exceeding the analyst consensus of $1.32 billion. Earnings per share beat estimates by $0.19, combining revenue growth with an earnings outperformance. The company said it expects to finish the year near the upper end of its revenue range of $5.215 billion to $5.255 billion. It also reaffirmed its target for adjusted earnings before interest, taxes, depreciation and amortization margin above 33%, and free cash flow of about $1.8 billion. The results put third-quarter performance and progress toward annual targets at the forefront of investor attention.
The annual guidance was within the range GoDaddy announced in July, when it narrowed its forecast from $5.195–$5.275 billion to $5.215–$5.255 billion, according to Reuters. The midpoint of the current range is $5.235 billion, slightly below the analyst consensus of $5.24 billion, the same report said. But management struck a more upbeat tone, expecting results to approach the upper end while keeping the numerical range unchanged. The company reported revenue of $1.298 billion in the second quarter, versus analysts’ estimate of $1.295 billion, according to LSEG data cited by Reuters. That provides a baseline for comparison with the previous quarter, while the third-quarter results show quarterly revenue continuing to beat the estimates cited in these figures.
By business segment, Applications and Commerce revenue grew 9% year over year to $524.3 million in the third quarter, according to Reuters. Core platform revenue rose 4% to $817.5 million, the same annual growth rate the segment recorded in the second quarter. By contrast, Applications and Commerce grew 11% in the second quarter, when its revenue was $514.8 million, compared with $783.2 million for the core platform. The comparison shows slower growth in Applications and Commerce between the quarters, alongside higher revenue in dollar terms, while the core platform maintained its 4% annual growth pace. The third quarter’s $1.34 billion in revenue was split between the two segments, according to the figures reported.
Airo, the company’s artificial intelligence product, was a key feature of the operational update: its annualized bookings rate exceeded $100 million in the third quarter and it began contributing gradually to bookings growth. “Our AI transformation is gaining momentum, and Airo surpassed a $100 million annualized bookings rate this quarter,” Chief Executive Aman Bhutani said. That compares with an annualized bookings rate of $50 million for the product in the second quarter, five times the $10 million level the company announced just one quarter earlier. In the second quarter, GoDaddy said Airo continued to gain momentum as it reached that annualized rate, according to its filing with the Securities and Exchange Commission. In the third quarter, the company said the product had begun contributing gradually to bookings growth, which on its own does not mean its impact was fully reflected in quarterly revenue.
Operating income rose 22% year over year to $362.5 million in the third quarter, with a margin of 27%, according to Reuters. Free cash flow also rose 9% year over year to $480.8 million during the quarter. In the second quarter, net income was $240.1 million, up 20% year over year, while free cash flow increased 13% to $443.5 million. GoDaddy’s total customer base reached 20.5 million after it added 40,000 customers in the third quarter. These figures refocus the operational assessment on segment growth, profitability and cash generation, alongside Airo’s progress and annual revenue guidance.
On capital allocation, GoDaddy repurchased 15.7 million shares worth $1.4 billion from the start of 2026 through October 26, according to Reuters. The report said the buybacks reduced total fully diluted shares by 12% since the start of the year. The stock fell 0.8% after the results were announced, Reuters reported. That move reflects the market reaction described in the report following the results, while EL7 data showed the stock closing at $106.54 on October 28, compared with $106.21 on October 27, before the announcement. The company’s management had scheduled a live webcast to discuss the results for 5:00 p.m. Eastern Time on October 29, 2026, with a replay to be available later.