GDDY · Q2 2026 Earnings

Neutral

GoDaddy

Reported July 30, 2026

30-second summary

Revenue grew 6.6% YoY to $1.298B (mid-range of the $1.285B–$1.305B guide), NEBITDA margin printed 33.4% (above the ~33% bar), and Airo's annualized bookings run rate stepped from Q1's $10M+ to $50M — a 5x sequential ramp that validates PMF. The subtler signal is in the FY guide: management "narrowed" the FY26 revenue range from $5.195B–$5.275B to $5.215B–$5.255B, holding the $5.235B midpoint but trimming the top end by $20M — reduced upside optionality dressed up as narrowing. Q3 is guided to ~5% YoY growth (implying $1.315B–$1.335B), a step down from Q2's 6.6%, and management flagged Q3 as "GoDaddy's toughest comparison" against last year's aftermarket strength.

Headline numbers

EPS

Q2 FY2026

$1.83

+8.3% vs est.

Revenue

Q2 FY2026

$1.30B

+6.6% YoY

+0.6% vs est.

Free cash flow

Q2 FY2026

$0.44B

Operating margin

Q2 FY2026

26.4%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.30B	$1.22B	+6.6%	$1.27B	+2.4%
EPS	$1.83	$1.41	+29.8%	$1.60	+14.4%
Operating margin	26.4%	21.9%	+450bps	24.5%	+190bps
Free cash flow	$0.44B	$0.39B	+13.3%	$0.47B	-6.4%

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$1.285B to $1.305B	$1.298B	in-line	Met
Revenue YoY growth	Q2 FY2026	6% at the midpoint	6.6% YoY	+0.6pts above guide midpoint	Met
NEBITDA margin	Q2 FY2026	approximately 33%	33.4%	+0.4pts above guide	Met
A&C revenue growth	Q2 FY2026	low double-digits	11% YoY	in-line (11% is low double-digits)	Met
Core revenue growth	Q2 FY2026	low single-digits	3.9% YoY	in-line (3.9% is low single-digits)	Met

New guidance

Metric	Period	Guide	YoY
Revenue	Q3 FY2026	$1.315B to $1.335B (midpoint $1.325B)	+3.5% to +5.1% YoY

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2026	$5.195B to $5.275B (midpoint $5.235B)	$5.215B to $5.255B (midpoint $5.235B)	Range narrowed by $0.040B; low-end raised $0.020B, high-end lowered $0.020B	Lowered

Reaffirmed unchanged this quarter: Revenue YoY growth (6% at the midpoint), NEBITDA margin (over 33%), Free cash flow (approximately $1.8B), A&C revenue growth (low double-digits), Core revenue growth (low single-digits)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Applications and Commerce (A&C)	$0.515B	—	+11.0%
Core Platform	$0.783B	$0.754B	+3.9%

Platform metrics

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Annualized Recurring Revenue (ARR)	$4,421.4 million	$4.181 billion	—
Total Bookings	$1,422.1 million	$1.345 billion	—
Average Revenue Per User (ARPU)	$250	$230	—
Total Customers	20.5 million	20.409 million	—
Airo Annualized Bookings Run Rate	$50 million	—	—
Net Debt	$2.661 billion	—	—

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
NEBITDA Margin	33.4%	—	—
Operating Margin	26.4%	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
International	$0.427B	$0.396B	+7.9%

Management tone

No transcript was available for this quarter; tone analysis below is grounded in the press release framing and prior-quarter comparisons.

Q3 FY25 agentic open internet as infrastructure → Q4 FY25 AI as operating system, bookings traded for cohort quality → Q1 FY2026 Airo AI Builder produces real revenue → Q2 FY2026 Airo run rate 5x's, but Q3 comp risk surfaced explicitly.

Airo escalated from "$10M+ within weeks" to "$50M annualized run rate" in one quarter. The press release quantifies Airo's annualized bookings run rate at $50M — a 5x step from the $10M+ disclosure at Q1. That is the second consecutive quarter GoDaddy has quantified a new AI product's monetization, and the magnitude of the sequential increase is the most concrete PMF validation the Airo story has produced. It also raises the bar for Q3: another 2–3x step is priced in; anything less will be read as ramp deceleration.

Management surfaced the Q3 comp risk pre-emptively. The press release explicitly names Q3 as GoDaddy's "toughest comparison against strong Aftermarket performance" — a rare pre-print negative flag. Q3 FY2025 printed 10.3% YoY revenue growth, aftermarket-juiced, and the current Q3 FY2026 guide of ~5% midpoint implies a materially decelerated quarter. Management is choosing to own the deceleration ahead of time rather than let it print as a surprise.

"Narrowing" is the polite framing for a trimmed top-end. The FY revenue action — midpoint held, range tightened, top-end reduced $20M — is characterized as narrowing. For a management team that has been precise about guidance language, choosing "narrowing" over "reaffirming" while simultaneously trimming the high end is a soft signal that the bull case has receded.

Customer count language stayed silent, and the metric barely moved. Total customers ticked from 20.4M to 20.5M, but the QoQ delta was only +22K — within noise. The press release does not restore any "return to growth" language, consistent with a print that isn't yet durable enough to promote. The ARPU/high-intent narrative continues to carry the customer story.

Answers to last quarter's watch list

Airo AI Builder Q2 run rate update — Airo's annualized bookings run rate stepped from $10M+ at Q1 to $50M at Q2, a 5x sequential ramp. This is the meaningful step-up the Q1 brief flagged as the validation threshold. The magnitude of the increase — with paid marketing and care-channel distribution now active — is the strongest PMF signal in the Airo cycle to date. Status: Resolved positively

Whether Q2 NEBITDA actually prints ~33% — Q2 NEBITDA printed 33.4%, +40bps above the ~33% guide and +80bps QoQ from Q1's 32.6%. Q3 is guided to ~33% again and FY remains "over 33%," keeping the H2 step-up cadence intact. Status: Resolved positively

Bookings growth vs revenue growth convergence — Q2 bookings printed $1.422B, +5.7% YoY reported (+5.2% cc), vs revenue growth of 6.6% reported. Bookings growth is now running roughly a point below revenue growth, meaning the gap has not yet closed and management's stated bookings/revenue parity commitment remains outstanding. Status: Continue monitoring

International growth normalization — International grew 7.9% in Q2 vs Q1's 7.0% — a mild reacceleration consistent with the "compare issue, not structural" framing from Q1. Not yet back to Q4 FY25's 10.3% pace, but the direction is favorable. Status: Continue monitoring

ANS first pricing or revenue disclosure — The press release does not surface any pricing structure, per-agent registration economics, or ANS revenue contribution. Three quarters into the ANS narrative, still no numbers. Status: Continue monitoring

A&C growth — does Q2 hold at ~11–12% — A&C printed 11% YoY vs Q1's 11.6% — mid-range of "low double digits" but a mild step down. Not yet trending toward the 10% low end, but the direction is softening rather than stabilizing. FY26 A&C guide remains "low double digits." Status: Continue monitoring

What to watch into next quarter

Whether Q3 actually prints inside the $1.315B–$1.335B range given the aftermarket comp — management pre-flagged Q3 as the toughest compare; a print at the low end or below the range would signal aftermarket softness is worse than modeled, while a beat at the high end would suggest core strength is masking the compare.

Airo run rate at Q3 — does the ramp continue at 3x+ or does it flatten — $10M+ → $50M in one quarter set a step-up expectation. Watch for the next specific dollar figure; anything under $100M annualized at Q3 will be read as deceleration, and a vague restatement would signal the ramp has stalled.

Whether Q4 revenue guide implies FY midpoint holds or slips — with FY range narrowed to $5.215B–$5.255B and H1 revenue at $2.565B, Q4 needs to print around $1.355B–$1.375B to hit the midpoint. Watch whether Q4 guide comfortably clears that bar or whether the FY midpoint quietly shifts lower.

Customer count — does the modest +22K QoQ Q2 print extend, and does management restore "return to growth" language — Q2's move from 20.4M to 20.5M was within noise. If Q3 prints a larger positive step and management restores the narrative, the customer story re-enters the bull thesis; otherwise the metric stays off the pedestal.

ANS monetization disclosure — three quarters and counting with no pricing structure — LegalZoom and Cloudflare partnerships were named at Q1, "thousands of non-GoDaddy agents" disclosed, but no revenue model. Watch for the first per-agent fee or contribution figure — its continued absence weakens the "monetization similar to domain registration" thesis.

NEBITDA margin durability at ~33% Q3 and step-up into Q4 — FY "over 33%" requires Q4 to accelerate above 33.4% given H1's average of ~33.0%. Watch Q4 guide and whether it implies material H2 acceleration or a soft landing at the "over 33%" floor.

Sources

GoDaddy Q2 FY2026 earnings press release (Form 8-K Exhibit 99.1), SEC filing dated 2026-07-30: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000087/gddyex991-20260630xq2earni.htm

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