Want to see GDDY full AI Analyst Report?
Top Page
GoDaddy
(NYSE:GDDY)
Select Model
Select Model
Rating:75Outperform
Price Target:
$119.00
▲(24.56% Upside)
Action:Reiterated
Date:10/30/26
The score is driven primarily by strong cash generation and profitability, reinforced by a very upbeat earnings outlook (higher-end revenue guidance, margin expansion, and ~$1.8B free cash flow target). Offsetting these positives are meaningful balance-sheet fragility from thin/negative equity and only moderate near-term momentum signals despite a favorable moving-average trend. Valuation is reasonable at ~14.4x earnings, with incremental support from improved liquidity via the expanded and extended revolving credit facility.
Positive Factors
Cash Generation
GoDaddy’s strong free-cash-flow generation and better-than-1:1 EBITDA conversion indicate high earnings quality and substantial internal funding capacity. This supports continued investment in products and AI while giving management flexibility to pursue capital returns and reduce financial strain over the next several quarters.
Negative Factors
Balance Sheet Fragility
Repeatedly small or negative equity weakens the capital structure and reduces financial flexibility even while operating results remain strong. Highly unstable debt-to-equity ratios also make shareholder value more sensitive to changes in earnings, debt levels, and business conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
GoDaddy’s strong free-cash-flow generation and better-than-1:1 EBITDA conversion indicate high earnings quality and substantial internal funding capacity. This supports continued investment in products and AI while giving management flexibility to pursue capital returns and reduce financial strain over the next several quarters.
Read all positive factors
GoDaddy Key Performance Indicators (KPIs)
Any
Customer Count
Measures the total number of customers, providing insight into GoDaddy’s market reach and growth in user base.
Measures the total number of customers, providing insight into GoDaddy’s market reach and growth in user base.
Data provided by:
The Fly
The FlyGoDaddy (GDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.85B
Dividend YieldN/A
Average Volume (3M)2.23M
Price to Earnings (P/E)15.9
Beta (1Y)0.68
Revenue Growth6.45%
EPS Growth24.06%
CountryUS
Employees5,845
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)7.36
Shares Outstanding126,647,705
10 Day Avg. Volume1,525,066
30 Day Avg. Volume2,228,436
Financial Highlights & Ratios
PEG Ratio-4.47
Price to Book (P/B)79.66
Price to Sales (P/S)3.46
P/FCF Ratio10.88
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda13.77
Forecast
1Y Price Target
$110.08Price Target Upside15.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)7.4
Revenue Forecast (FY)$5.24B
GoDaddy Business Overview & Revenue Model
Company Description
GoDaddy Inc., founded in 2014 and based in Tempe, Arizona, operates internationally as a developer and provider of cloud-based technological solutions. The company serves a wide array of clients, including small businesses, individuals, organizati...
How the Company Makes Money
GoDaddy makes money primarily by selling subscriptions and recurring services that help customers create, manage, and monetize their online presence. A major revenue stream is domain-related services: customers pay to register domain names and the...
GoDaddy Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
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.Positive Updates
Bookings and Revenue Growth
Third-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.
Negative Updates
Airo Gross Margin Pressure
Management stated that Airo has a lower gross margin than internally developed software products such as Websites + Marketing. Gross margin is expected to see some deterioration as Airo scales, and Airo is not expected to reach the margin levels of Websites + Marketing even as it improves over time.
Read all updates
Q3-2026 Updates
Positive
Negative
Bookings and Revenue Growth
Third-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.
Read all positive updates
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.GoDaddy Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
38
Negative
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.18B | 4.95B | 4.57B | 4.25B | 4.09B | 3.82B |
| Gross Profit | 3.30B | 3.15B | 2.92B | 2.68B | 2.61B | 2.44B |
| EBITDA | 1.07B | 1.25B | 1.06B | 754.10M | 697.40M | 579.20M |
| Net Income | 961.60M | 875.00M | 936.90M | 1.37B | 352.20M | 242.30M |
Balance Sheet | ||||||
| Total Assets | 7.91B | 8.03B | 8.24B | 7.56B | 6.97B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.12B | 1.08B | 1.09B | 498.80M | 774.00M | 1.26B |
| Total Debt | 85.60M | 3.86B | 3.89B | 3.94B | 3.98B | 4.06B |
| Total Liabilities | 8.05B | 7.82B | 7.54B | 7.50B | 7.30B | 7.33B |
| Stockholders Equity | -138.80M | 215.10M | 692.10M | 62.20M | -331.80M | 81.70M |
Cash Flow | ||||||
| Free Cash Flow | 1.74B | 1.58B | 1.26B | 970.20M | 919.60M | 576.10M |
| Operating Cash Flow | 1.77B | 1.60B | 1.29B | 1.05B | 979.70M | 829.30M |
| Investing Cash Flow | -45.00M | -25.10M | 21.50M | -102.40M | -132.00M | -635.60M |
| Financing Cash Flow | -1.53B | -1.59B | -677.40M | -1.26B | -1.33B | 298.10M |
GoDaddy Technical Analysis
Positive
95.54
Price Trends
101.43
Positive
95.04
Positive
91.92
Positive
Market Momentum
3.15
Negative
66.07
Neutral
51.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Positive. The current price of 95.54 is below the 20-day moving average (MA) of 106.08, below the 50-day MA of 101.43, and above the 200-day MA of 91.92, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 66.07 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDDY.
GoDaddy Risk Analysis
GoDaddy disclosed 49 risk factors in its most recent earnings report. GoDaddy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GoDaddy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.85B | 15.93 | 1200.87% | ― | 6.45% | 24.06% | |
73 Outperform | $27.56B | 33.00 | -38.17% | 1.04% | 6.46% | 8.32% | |
69 Neutral | $10.54B | 35.58 | 54.71% | ― | 21.41% | 83.31% | |
66 Neutral | $99.95B | -481.39 | -13.86% | ― | 33.53% | -72.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | $667.77M | -4.05 | 12.97% | ― | 0.34% | 60.08% | |
43 Neutral | $122.89M | -1.46 | 48.45% | ― | 4.22% | 13.24% |
* Technology Sector Average
GDDY
GoDaddy
117.24
-15.89
-11.94%
TCX
Tucows
10.99
-8.17
-42.64%
VRSN
Verisign
307.21
70.36
29.71%
NET
Cloudflare
280.70
27.40
10.82%
RXT
Rackspace Technology
2.62
1.02
63.75%
DOCN
DigitalOcean Holdings
89.65
48.99
120.49%
GoDaddy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
GoDaddy Upsizes Revolving Credit Facility, Extends Maturity
Positive
Aug 4, 2026
On July 31, 2026, GoDaddy’s borrowing subsidiaries entered into a Thirteenth Amendment to their Second Amended and Restated Credit Agreement, upsizing and refinancing the prior $1,000 million revolving credit facility with a new $1,200 milli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.