GET DAILY SIGNALSGoDaddy (GDDY) Q3 2026 Earnings Show Steady Growth and AI Momentum
Key Takeaways
- GoDaddy reported third-quarter 2026 revenue of $1.34 billion, up 6% year over year, slightly above Wall Street's consensus estimate of roughly $1.33 billion.
- GAAP diluted earnings per share came in at $2.08, beating analyst expectations and rising from $1.51 in the same quarter a year earlier.
- Net income climbed 24% to $261.8 million, while free cash flow grew 9% to $480.8 million, underscoring the company's strong cash generation.
- AI-powered product Airo surpassed a $100 million annualized bookings run rate, a milestone management highlighted as evidence of its AI transformation gaining momentum.
- Despite the beat, shares slipped in after-hours trading as investors weighed in-line annual recurring revenue and reaffirmed full-year guidance.
Putting GoDaddy's Results in Context
GoDaddy's quarterly results matter because the company is trying to reposition itself from a domain registrar into a broader, AI-enabled platform for entrepreneurs and small businesses. Recent quarters have shown steady mid-single-digit revenue growth, expanding profitability, and aggressive share repurchases, giving investors a clearer view of how management balances reinvestment against shareholder returns. The third quarter was especially significant because it marked another step in scaling Airo, GoDaddy's flagship AI product, which management has positioned as a key future growth driver. With applications and commerce outpacing the core domain business, the results offered a timely gauge of whether higher-margin, AI-adjacent services can offset slower growth in the company's traditional registry operations. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Quarter's Key Numbers
GoDaddy reported total revenue of $1.34 billion for the quarter ended September 30, 2026, an increase of 6% year over year and slightly ahead of consensus estimates near $1.33 billion. Diluted GAAP earnings per share reached $2.08, exceeding analyst expectations of roughly $1.85 to $1.90 and up from $1.51 a year earlier. Net income rose 24% to $261.8 million.
On an operating basis, the company generated $362.5 million in operating income, up 22% year over year, while normalized EBITDA increased 10% to $449.3 million, producing a 33.5% margin. Free cash flow climbed 9% to $480.8 million. By segment, Applications and Commerce revenue grew 9% to $524.3 million, while Core Platform revenue rose 4% to $817.5 million. Total bookings increased 6% to $1.4 billion, and annual recurring revenue reached $4.51 billion, up 5.1% year over year and roughly in line with consensus.
How the Market Reacted
The market's response to GoDaddy's results was cautious despite the headline beat. Shares traded lower in after-hours activity, falling roughly 2% to 4%, according to multiple financial data providers. The muted reaction reflected a mix of positive and more restrained signals: profits and revenue topped estimates, and the Airo bookings milestone showed clear traction, but annual recurring revenue came in only in line with expectations, and the company reaffirmed rather than raised its full-year outlook. Investors also appeared to weigh a competitive environment in which rapid AI deployment is still translating into incremental bookings rather than an immediate acceleration in total revenue growth. Sentiment heading into the print had been constructive, supported by consistent profitability gains and a large buyback program, but the post-earnings slip suggests the market wanted more evidence that AI momentum is meaningfully lifting the top line.
What to Watch Going Forward
Looking ahead, investors will focus on whether Airo's momentum translates from bookings into sustained revenue growth. The company said it expects to finish toward the higher end of its 2026 revenue range of $5.215 billion to $5.255 billion, while reaffirming a normalized EBITDA margin target above 33% for the full year.
Several factors are worth monitoring in the coming quarters. First, watch the mix between Applications and Commerce, which is growing faster and carries higher margins, and the Core Platform, which continues to grow in the low single digits. Second, track how much of the AI-driven engagement converts into paid subscriptions and recurring revenue, since bookings can lead revenue with a lag.
Cost trends and capital allocation also remain important. GoDaddy has combined margin expansion with substantial share repurchases, so any shift in buyback activity or marketing investment to scale Airo could influence free cash flow. Finally, competitive dynamics in domains, website building, and AI-assisted commerce tools will shape whether the company can defend its market position while expanding profitability. These themes, rather than any single quarterly figure, are likely to drive the next leg of the story.
Exploring AI-Powered Research Tools
When analyzing names like GDDY, I frequently rely on Tickeron’s AI Screener to quickly filter opportunities by technical patterns, fundamentals, and AI signals. It helps surface relevant ideas without hours of manual work and has become a regular part of my research workflow for software and internet services stocks.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GDDY in -5.83% downward trend, falling for three consecutive days on October 27, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GDDY declined for three days, in 164 of 253 cases, the price declined further within the following month. The odds of a continued downward trend are 65%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for GDDY moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In 22 of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at 59%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 64 cases where GDDY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 62%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GDDY as a result. In 58 of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 60%.
The Moving Average Convergence Divergence Histogram (MACD) for GDDY turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In 31 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 60%.
GDDY broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
GDDY moved above its 50-day moving average on October 01, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where GDDY advanced for three days, in 227 of 355 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
The Aroon Indicator entered an Uptrend today. In 149 of 261 cases where GDDY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. GDDY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 80 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 83 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GDDY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 98 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: GDDY's P/B Ratio (2001.601) is very high in comparison to the industry average of (15.799). P/E Ratio (15.595) is within average values for comparable stocks, (60.453). Projected Growth (PEG Ratio) (0.511) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.211) among similar stocks. P/S Ratio (2.627) is also within normal values, averaging (103.889).
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General Information
a provider of domain name registration and web hosting services
Industry ComputerCommunications
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