Summary
GoDaddy reported second quarter fiscal 2026 revenue of $1,298.0 million, up 6.6% from the prior-year quarter and up 6.3% on a constant currency basis. Year-to-date revenue of $2,564.9 million was up 6.3%. Growth was uneven by segment. Applications and Commerce revenue rose 11.0% while Core Platform revenue rose 3.9%, so the software-led side of the business again carried the mix. International revenue rose 7.9%, or 7.1% in constant currency. Total bookings of $1,422.1 million were up 5.7%, and annualized recurring revenue of $4,421.4 million was up 5.7%.
Profitability expanded faster than the top line. Operating income for the quarter was $342.5 million, up 28.6%, and the operating margin climbed to 26.4% from 21.9%. Year-to-date operating income of $653.0 million was up 27.1%, with a 25.5% margin. Net income of $240.1 million rose 20.1% in the quarter, and diluted EPS of $1.83 was up 29.8% from $1.41. The year-to-date picture is less flattering. Net income of $454.7 million was up 8.4% and diluted EPS of $3.43 was up 17.5%, a comparison that reflects a one-time benefit from the recognition of an uncertain tax position recorded in the six months ended June 30, 2025. Segment EBITDA shows the same mix effect. Applications and Commerce Segment EBITDA rose 17.2% to $241.1 million at a 46.8% margin, while Core Segment EBITDA rose 6.4% to $261.9 million at a 33.4% margin.
Cash generation remained a strength. Net cash provided by operating activities was $442.5 million in the quarter, up 16.5%, and $914.0 million year to date, also up 16.5%. Capital expenditures were $5.1 million, up 24.4%. Free cash flow, a non-GAAP measure, was $443.5 million, up 13.3%. Deferred revenue, current portion, stood at $2,527.9 million, up 5.3%, and remaining performance obligations were $3,510.9 million, up 5.2%. At June 30, 2026 the company held $1.2 billion of cash and cash equivalents against $3.8 billion of total debt, leaving net debt of $2.7 billion. Year to date through July 29, 2026, GoDaddy repurchased 9.8 million shares for $851.8 million, a 7% gross reduction in fully diluted shares outstanding since the start of the year.
Airo remains the centerpiece of the investment case. The AI experience reached an annualized bookings run rate of $50 million, five times the $10 million reported one quarter earlier. GoDaddy said it intends to contribute Agent Name Service to the Linux Foundation and is co-developing Agentic Resource Discovery with Cisco, Databricks, GitHub, Google, Hugging Face, Microsoft, Nvidia, Salesforce, ServiceNow and Snowflake. The GoDaddy Developer Platform launched with a new generation of APIs that let developers and AI systems search, purchase, configure and manage domains inside the tools where they already work. Total customers reached 20.5 million, up 22 thousand during the quarter and 35 thousand since December 31, 2025. ARPU was $250, up 8.7%.
Guidance points to a slower third quarter. For the quarter ending September 30, 2026, GoDaddy expects revenue of $1.315 billion to $1.335 billion, growth of 5% at the midpoint, and NEBITDA margin of approximately 33%. Management called the third quarter its toughest comparison against strong Aftermarket performance in the prior year. For the full year ending December 31, 2026, revenue guidance was narrowed to $5.215 billion to $5.255 billion, growth of 6% at the midpoint versus $4.951 billion for the full year ended December 31, 2025. Full-year NEBITDA margin is reaffirmed at over 33%, and the full-year free cash flow target is reaffirmed at approximately $1.8 billion versus $1.6 billion in 2025. Within total revenue, third quarter and full year A&C growth is expected in the low double digits and Core growth in the low single digits.
Risks are the familiar mix for a registrar with a large AI bet. The filing cites cyberattacks and breaches of security measures, dependence on payment card networks and acquiring processors, competition, privacy and regulatory developments, macroeconomic and credit market conditions, interest rate and inflation pressure, and geopolitical tensions. It also flags execution risk around deploying generative and agentic AI and around developing, launching and scaling Agent Name Service and Agentic Resource Discovery. Debt covenants restrict the company's ability to incur liens, sell assets and make restricted payments, with $998.0 million available under the revolver as of June 30, 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.30B | $1.27B | +2.5% | $1.22B | +6.6% |
| General & administrative | $90.5M | $91.0M | -0.5% | $96.9M | -6.6% |
| Total operating expenses | $955.5M | $956.4M | -0.1% | $951.3M | +0.4% |
| Operating income (loss) | $342.5M | $310.5M | +10.3% | $266.3M | +28.6% |
| Operating margin | 26.4% | 24.5% | +1.9 pp | 21.9% | +4.5 pp |
| Net income (loss) | $240.1M | $214.6M | +11.9% | $199.9M | +20.1% |
| Net margin | 18.5% | 16.9% | +1.6 pp | 16.4% | +2.1 pp |
| Diluted EPS | $1.83 | $1.60 | +$0.23 | $1.41 | +$0.42 |
| Customers | 2,025 | 2,025 | ±0.0% | 5 | +40400.0% |
Risks
GoDaddy is building and marketing AI-native and agentic offerings such as Airo AI Builder, while the filing warns that competitors may develop similar or superior AI products and that failure to translate AI adoption into productivity, customer experience or innovation could cause it to lag. The risk factor also flags autonomous agentic systems acting in unintended or unauthorized ways, plus AI-related litigation, regulatory scrutiny and intellectual property exposure.
The filing expands the risk that AI-powered tools, closed ecosystems and changing customer behavior could reduce demand for domain names, websites and hosting, potentially eliminating the need to register a domain name or establish an online presence. This directly threatens GoDaddy's Core Platform, which includes domain registrations and renewals.
The filing says competition is expected to intensify and that core markets including website creation, hosting and related online presence solutions are increasingly characterized by commoditization, which may limit differentiation and increase price competition. It also notes competitors may offer services at lower or no cost.
The filing discloses that GoDaddy has experienced an increase in social engineering attacks and unauthorized access to certain systems, and it warns that AI-assisted cyberthreats, including phishing, credential theft, domain name transfer attempts and account takeover attempts, are increasing. It also flags insider threats and risks from third-party LLM and AI system providers.
A substantial portion of GoDaddy's cloud infrastructure is provisioned through AWS, and the filing says AWS may terminate the agreement for cause and suspend services, which could cause platform interruptions, delays and additional expenses in arranging alternative cloud infrastructure.
GoDaddy has changed and expects to continue changing its pricing model and price points, and the filing warns that changes have resulted and could result in a loss, decrease or slowing of total customers or total bookings. Competitor discounts and bundling could also pressure retention.
International revenue represented approximately 33% of total revenue for the year ended December 31, 2025, and the filing cites tariffs, trade disputes, and geopolitical conflicts involving China, Ukraine, Russia, the U.S. and Iran, and the Middle East as risks. MD&A notes international revenue increased 7.9% for the quarter.
GoDaddy Payments is subject to money transmission, consumer protection, anti-money laundering and payment card network rules, and the filing warns that payment processors can impose holdbacks or suspend processing upon material adverse changes in financial condition, which could reduce liquidity. It also flags merchant fraud and chargeback exposure.
The filing says future performance depends on senior management and key employees, and competition for technical and engineering talent is intense. It also notes U.S. immigration laws, including H-1B visa caps and processing delays, could affect recruiting and retention.
MD&A attributes a higher provision for income taxes for the quarter and year to date to higher pre-tax book income and a decrease in excess tax benefits related to stock-based compensation, while the risk factors warn that unanticipated changes in effective tax rates or adverse tax examinations could affect operating results.
The filing cites higher interest rates, inflation, recession, tariffs, trade policy uncertainty and geopolitical conflict as factors that could reduce customer spending or renewals. MD&A notes future capital requirements depend on macroeconomic activity.
GoDaddy repurchased approximately 9.6 million shares during the six months ended June 30, 2026, and the filing says it cannot guarantee additional repurchases. Failure to repurchase after announcing intent may negatively impact reputation and investor confidence.
SaaS KPIs
All quarters →Total bookings
Domains under management
Free cash flow
Average revenue per user (ARPU)
NEBITDA margin
Normalized EBITDA
Annualized recurring revenue
Segment EBITDA - A&C
Segment EBITDA - Core
Segment EBITDA margin - A&C
Segment EBITDA margin - Core
Summary, forecast, risks and KPIs are extracted from GoDaddy Inc.'s SEC filings for Q2 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.