$GDDY · GoDaddy Inc.
GoDaddy filed its Q3 FY2026 10-Q, reporting revenue of $1.342B (+6.0% YoY), net income of $261.8M (+24.4% YoY), and diluted EPS of $2.08. Operating margin expanded to 27.0% from 23.4% a year ago, aided by a sharp decline in depreciation and amortization. The company repurchased $481.8M in stock during the quarter, pushing stockholders' equity into a ($138.8M) deficit.
- Q3 revenue of $1.342B (+6.0% YoY), with Applications & Commerce up 9.0% to $524.3M.
- Net income jumped 24.4% YoY to $261.8M; diluted EPS of $2.08 vs. $1.51 a year ago.
- Operating margin expanded to 27.0% from 23.4% as D&A fell 55% to $12.7M.
- Repurchased 5.0M shares for $481.8M in Q3; total buybacks hit $1.32B across nine months.
- Stockholders' equity swung to a deficit of ($138.8M) from +$215.1M at year-end 2025, driven by buybacks.
Extended-hours trading shows GDDY at $103.05, down 2.68% from the $105.89 regular close — a negative reaction despite strong earnings, possibly reflecting the equity-deficit optics or profit-taking after the stock's run.
GoDaddy is aggressively shrinking its share count (down ~9% YoY) while delivering accelerating profitability — but the resulting negative equity position is an unusual risk for a $13B+ market-cap company.
GoDaddy's 27.0% operating margin and aggressive buyback strategy stand out among internet-infrastructure peers, though the Applications & Commerce segment's 9% growth signals stronger momentum than the mature Core Platform (4.2%).
The filing flags AI deployment risks, service interruptions/security incidents, and foreign currency exposure. Stockholders' deficit of ($138.8M) raises balance-sheet leverage concerns given $3.77B in long-term debt.