Key Highlights
- GoDaddy shares climbed 4% following Q1 adjusted EPS of $1.60, surpassing the Street’s $1.52 estimate by $0.08
- Quarterly revenue reached $1.27 billion, meeting Wall Street projections
- Q2 revenue outlook set at $1.285B–$1.305B, with the midpoint modestly above the $1.29B Street consensus
- Full-year 2026 revenue forecast of $5.195B–$5.275B aligns closely with analyst models
- The company’s Airo AI solution achieved a multi-million dollar annualized bookings run rate shortly after beta release
GoDaddy (GDDY) shares rallied more than 4% in extended trading on April 30 following the release of first-quarter results that exceeded bottom-line expectations while meeting top-line projections.
The web hosting and domain registration giant delivered adjusted earnings per share of $1.60, topping the Street’s $1.52 forecast. Total revenue landed at $1.27 billion, consistent with analyst estimates ranging from $1.26 billion to $1.27 billion.
Net income declined 2% on a year-over-year basis to $214.6 million, although alternative profitability measures painted a more optimistic picture.
Normalized EBITDA reached $413.5 million, marking a 13% annual increase and representing a 33% margin. Operating cash flow after capital expenditures jumped 15% to $473.6 million during the three-month period.
GoDaddy bought back 3.0 million shares for $279.7 million in the quarter. Management maintained its full-year free cash flow guidance of roughly $1.8 billion.
Forward Outlook for Q2 and 2026
Looking ahead to the second quarter, GoDaddy forecast revenue between $1.285 billion and $1.305 billion. The $1.295 billion midpoint slightly exceeds the $1.29 billion analyst consensus.
For the complete 2026 fiscal year, the company guided to revenue of $5.195 billion to $5.275 billion. The $5.235 billion midpoint tracks nearly in line with the $5.236 billion Street estimate.
CFO Mark McCaffrey emphasized “disciplined execution and driving compounding free cash flow” as the organization’s primary objective for the remainder of the year.
Artificial Intelligence Investments Showing Results
GoDaddy’s Airo AI platform is rapidly emerging as a key growth driver. The solution, which entered beta testing last year with five artificial intelligence agents, has now expanded to more than two dozen.
These agents perform functions spanning logo design to comprehensive marketing campaign development, all designed to support small and medium-sized enterprises in establishing and maintaining their online footprint.
The Airo AI Builder reached a multi-million dollar annualized bookings run rate just weeks following its beta introduction, which management highlighted as preliminary validation of market demand.
CEO Aman Bhutani stated 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.”
The firm’s artificial intelligence initiative represents a cornerstone of its approach to capturing additional small business customers, with GoDaddy framing Airo as a comprehensive solution tailored for microbusiness clients.
Shares traded up more than 4% in after-hours activity following the quarterly announcement.
