$GDDY · GoDaddy Inc.
GoDaddy reported Q3 FY2026 results with total revenue of $1.342B (+6% YoY), net income of $261.8M (+24% YoY), and diluted GAAP EPS of $2.08. Total bookings rose 6% to $1.4B. The company highlighted Airo surpassing a $100M annualized bookings run rate and reaffirmed full-year revenue guidance of $5.215B-$5.255B with NEBITDA margin over 33%.
- Revenue of $1.342B grew 6% YoY, matching the constant-currency rate but decelerating from prior quarters.
- Net income surged 24% YoY to $261.8M; diluted GAAP EPS of $2.08 vs. $1.51 a year ago.
- Airo annualized bookings run rate exceeded $100M, more than doubling from $50M disclosed last quarter.
- Operating margin expanded 360 bps to 27.0%; NEBITDA margin rose 120 bps to 33.5%.
- Year-to-date share repurchases hit $1.4B for 15.7M shares, a 12% gross reduction in fully diluted shares.
Extended-hours trading shows GDDY at $98.16, down 7.30% from the $105.89 regular close. The selloff suggests the market is disappointed by 6% revenue growth and 6% bookings growth — both decelerating — despite strong margin expansion and the Airo milestone.
The 7.3% after-hours drop on a $13.4B market-cap company signals the market is punishing decelerating growth despite record profitability and a doubling Airo run rate.
GoDaddy's AI pivot with Airo mirrors peers like Wix and Squarespace racing to embed agentic AI into small-business platforms. The $100M Airo run rate signals early traction but the 6% total revenue growth lags the double-digit A&C segment growth, suggesting Core Platform stagnation.
Forward-looking risks flagged include Airo customer migration and monetization uncertainty, AI technology deployment risks, and macroeconomic headwinds from interest rates and inflation. Revenue growth deceleration to 6% may signal maturing core markets.