GoDaddy (38D) Q3 2026 Earnings Report
CH:38D Q3 2026 EPS Results
- Actual EPS
- CHF 1.71
- Consensus EPS
- CHF 1.56
- Beat/Miss
- Beat by +CHF 0.15
- One Year Ago EPS
- CHF 1.24
CH:38D Q3 2026 Revenue Results
- Actual Revenue
- CHF 1.11B
- Expected Revenue
- CHF 1.09B
- Beat/Miss
- Beat by +CHF 15.42M
- YoY Revenue Growth
- +6.35%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
CH:38D Upcoming Earnings
GoDaddy's next earnings date is estimated for February 16, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:38D Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. GoDaddy reported solid growth in bookings, revenue, EBITDA, margins and free cash flow, while Airo adoption accelerated rapidly and became incremental to bookings sooner than expected. The company also highlighted improving retention, share repurchases, a strong balance sheet and continued progress in AI products, APIs and agentic infrastructure. The principal challenges were Airo's lower gross margin, early-stage API and ANS monetization, industry discounting, lower email seat volumes and the timing of Airo revenue recognition. Highlights significantly outweighed the lowlights.
Company Guidance
For the full year, GoDaddy expects to finish toward the higher end of its $5.215 billion to $5.255 billion revenue range, with A&C revenue growth of approximately 10% and core platform revenue growth of approximately 4%; for the fourth quarter, absent any impact of FX, bookings growth is expected to accelerate and be slightly ahead of revenue growth, driven by increasing units from adoption of Airo within A&C. GoDaddy reaffirmed its normalized EBITDA margin target of over 33% for the year, reflecting more than 100 basis points of expansion, and its full year free cash flow target of approximately $1.8 billion with a normalized EBITDA conversion ratio of greater than 1:1; its free cash flow North Star remains a 3-year CAGR of over 25%, ahead of the 20% target set at the last Investor Day.
- Bookings and Revenue GrowthThird-quarter bookings grew 6% to $1.4 billion, in line with revenue growth. Total revenue grew 6% to $1.3 billion, while ARR increased 5% to $4.5 billion.
- Strong Profitability and Cash FlowNormalized EBITDA grew 10% to $449 million, with normalized EBITDA margin expanding approximately 120 basis points to over 33%. Free cash flow grew 9% to $481 million, with trailing 12-month free cash flow of $1.8 billion and normalized EBITDA converting to free cash flow at better than a 1:1 ratio.
- Airo Bookings Run Rate More Than DoubledAiro's annualized bookings run rate more than doubled to over $100 million, compared with $50 million last quarter and $10 million the quarter before.
- Airo Became Incremental to BookingsAiro's bookings more than offset the impacts of migrating legacy website products and incrementally contributed to bookings growth in the quarter. Management said this occurred sooner than expected, with stronger-than-expected adoption, attach rates and customer response.
- Applications and Commerce GrowthApplications and Commerce bookings grew 8%, up from 7% in the second quarter. Segment revenue grew 9% to $524 million, while segment EBITDA margin expanded roughly 120 basis points to 47%.
- Core Platform PerformanceCore Platform bookings grew 4%, driven by increased high-value transactions and strength in new primary domain registrations and renewals across many TLDs. Core Platform revenue grew 4% to $818 million, supported by a strong Aftermarket, while segment EBITDA margin remained flat at 33%.
- Airo Adoption and Customer AttachAiro's free-to-paid conversion rate and customer satisfaction remained healthy and stable as traffic increased. New Airo customers attached a second paid product 70% of the time, compared with slightly more than half for GoDaddy's overall customer base. The most common attached products were domains and email.
- Customer Retention and ARPUMore than half of GoDaddy customers have at least two paid products, retention rates remain above 85% and continue to improve, and Airo customers have an average revenue per user of $253. Customers spending more than $500 annually with two or more paid products were described as having nearly perfect retention.
- Productivity Growth from Pricing ActionsProductivity grew on targeted pricing actions taken earlier in the year, partially offset by lower unit volume as customers renewed email accounts with fewer seats.
- International Revenue GrowthInternational revenue increased 3% to $436 million. Management attributed the variation versus prior quarters to the fact that most Aftermarket transactions in the quarter were domestic rather than international.
- Full-Year Revenue and Margin OutlookGoDaddy expects to finish toward the higher end of its $5.215 billion to $5.255 billion full-year revenue range. The company expects approximately 10% Applications and Commerce revenue growth and approximately 4% Core Platform revenue growth for the full year, while reaffirming a normalized EBITDA margin target of over 33%.
- Free Cash Flow and Capital Allocation OutlookThe company reaffirmed its full-year free cash flow target of approximately $1.8 billion, with a normalized EBITDA conversion ratio greater than 1:1. GoDaddy remains on track for a free cash flow North Star of a three-year CAGR of over 25%, ahead of the 20% target set at its last Investor Day.
- Share Repurchases and Balance SheetGoDaddy repurchased 5 million shares for $477 million during the third quarter and $1.4 billion year-to-date through October 26, reducing fully diluted shares outstanding by 12%. The company ended the quarter with $1.1 billion in cash, $2.3 billion of total liquidity, $2.7 billion of net debt and 1.4x net leverage.
- Airo Expansion and Planned InvestmentAiro became the default option in the domains purchase path in late Q3. GoDaddy is increasing marketing and brand-awareness spending in Q4, deploying significant internal resources behind Airo and continuing investment in AI products, platform, marketing and compute, with incremental Q4 marketing spend offset by efficiencies elsewhere in the business.
- AI-Driven Productivity InitiativesManagement said a large majority of GoDaddy's software is now written with AI tools and that productivity gains are appearing across operating expenses. The company is testing open-weight models in its own data centers and expects additional AI-related operational efficiencies over the next 3 to 6 months.
- Agent-Friendly APIs and Developer PlatformGoDaddy launched and expanded agent-friendly APIs covering domains, hosting, professional email and commerce. The company recently launched Node.js hosting and said the four-product API breadth is differentiated, although the offering remains early and requires additional go-to-market work and integration with external tools.
- Growth in LLM-Originated TrafficTraffic originating from large language models increased during the quarter after several incremental improvements, although management said it remains on a small base and is too small to parse out. GoDaddy is working with LLM companies to improve visibility and attract high-intent traffic.
- Resilience of Direct Traffic and BrandFollowing Google's rapid shift toward AI mode for much of search in GoDaddy's market, the company observed that the impact on its traffic was small, which management attributed to the resilience of its direct traffic and brand.
- Agentic Open Web and Chain of Trust DemonstrationGoDaddy joined Infoblox, Google and Cloudflare in demonstrating Chain of Trust, an open architecture developed with the Singapore government. Agents on different platforms completed a simulated purchase using ANS, ARD and other open Internet standards, while the system verified agent identities and blocked impostor agents.
- Airo Credit Pack EngagementAiro bookings were approximately two-thirds subscription and one-third credit packs. Management reported healthy credit-pack attach rates, customers returning for more credit packs and both power users and regular users, while noting that the usage pattern remains early and dynamic.
- Fourth-Quarter Bookings MomentumExcluding foreign exchange impacts, management expects fourth-quarter bookings growth to accelerate and be slightly ahead of revenue growth, driven by increasing Airo adoption in Applications and Commerce. Applications and Commerce bookings are also expected to be ahead of revenue as Airo expands in the domains purchase path.
CH:38D Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 16, 2027 | 2026 (Q4) | 1.74- | 1.48 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 1.561.71 | 1.24 | 37.75% (+0.47) | |
| Jul 30, 2026 | 2026 (Q2) | 1.401.51 | 1.16 | 29.79% (+0.35) | |
| Apr 30, 2026 | 2026 (Q1) | 1.251.32 | 1.24 | 5.96% (+0.07) | |
| Feb 24, 2026 | 2025 (Q4) | 1.301.48 | 1.12 | 32.35% (+0.36) | |
| Oct 30, 2025 | 2025 (Q3) | 1.211.24 | 1.09 | 14.39% (+0.16) | |
| Aug 07, 2025 | 2025 (Q2) | 1.111.16 | 0.83 | 39.60% (+0.33) | |
| May 01, 2025 | 2025 (Q1) | 1.141.24 | 2.27 | -45.29% (-1.03) | |
| Feb 13, 2025 | 2024 (Q4) | 1.191.12 | 6.47 | -82.68% (-5.35) | |
| Oct 30, 2024 | 2024 (Q3) | 1.011.09 | 0.73 | 48.31% (+0.35) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed