GoDaddy Inc. reported first‑quarter 2026 revenue of $1.27 billion, up 6% year‑over‑year from $1.194 billion in Q1 2025, and earnings per share of $1.60, beating the consensus estimate of $1.53 by $0.07. The earnings beat reflects disciplined cost management and a favorable mix of higher‑margin services that offset modest growth in legacy hosting businesses.
The company’s Applications & Commerce segment generated $498.2 million in revenue, a 12% increase from the same period last year, while the Core Platform segment grew 3% to $768.7 million. The stronger performance of the Applications & Commerce unit, which includes AI‑powered tools and e‑commerce solutions, has shifted GoDaddy’s revenue mix toward higher‑margin offerings and contributed to the overall earnings improvement.
Normalized EBITDA margin expanded to 33%, up 210 basis points from the prior year, driven by AI‑driven efficiencies, a favorable product mix, and operational leverage. The margin growth demonstrates that GoDaddy is successfully translating its AI transformation into profitability gains while maintaining cost discipline across its service portfolio.
Management reaffirmed its full‑year 2026 revenue guidance of $5.195 billion to $5.275 billion, a range that represents a 6% increase at the midpoint compared with the previous guidance. The guidance signals confidence in continued demand for the company’s higher‑margin software and AI services, while also reflecting the company’s awareness of headwinds such as softness in non‑core hosting and the upcoming expiration of its .co registry contract.
"GoDaddy is moving quickly to lead in this next phase of AI‑driven innovation, focusing on helping entrepreneurs turn ideas into real businesses faster and more easily," said CEO Aman Bhutani. "We are bringing our AI transformation to life, expanding our capabilities and building on our domain leadership to power an open internet and deliver lasting value for our customers." CFO Mark McCaffrey added, "Our first quarter results highlight the durability of our model. As we continue to deliver one‑stop‑shop solutions for our micro‑business customers, we are leading with disciplined execution and driving compounding free cash flow. At the same time, our strong balance sheet provides the flexibility to invest in the business while maintaining our margin commitments and supporting long‑term shareholder value." Investors focused on the EPS beat and margin expansion, while noting the company’s continued emphasis on AI and the challenges posed by legacy hosting softness and the .co contract expiration.
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