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what it is
GoDaddy helps people buy a domain, build a site, host it, and sell stuff online without hiring a full IT department.
how it gets paid
Last year Godaddy made $5.0B in revenue. domains was the main engine at $1.85B, or 37% of sales.
why it's growing
Revenue grew 8.3% last year. Momentum across higher-value customer cohorts remains encouraging, with average revenue per user and attachment rates continuing to trend higher.
what just happened
GoDaddy's latest quarter showed revenue of $1.27B, up 10% vs. prior year, while EPS of $1.51 beat forecasts.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
20.8x trailing p/e — priced about right
30.0% return on capital — every dollar works hard here
xvary composite: 57/100 — below average
What they do
GoDaddy helps people buy a domain, build a site, host it, and sell stuff online without hiring a full IT department.
Your domain, website, email, and store settings often live in one account. Moving them is tedious, risky, and easy to delay. That friction matters when GoDaddy serves a business growing toward about $5.0 billion in annual revenue, and even a small customer loss rate can still leave a very sticky base.
How they make money
$5.0B
annual revenue · their business grew +8.3% last year
domains
$1.85B
+6.0%
hosting
$1.30B
+7.0%
websites + commerce
$1.00B
+16.0%
security + email
$0.55B
+10.0%
aftermarket + other
$0.30B
+5.0%
The products that matter
domains, hosting, and web presence tools
Core Platform
anchors a $5.0B company
this is the base business inside a company that generated $5.0B in revenue last year. the current snapshot points to 4.2% growth here — slower than the newer tools, but still the customer acquisition engine.
core
marketing, payments, and commerce software
Applications & Commerce
mid-teens growth
management called this the faster lane, with growth in the mid-teens versus 8.3% for the company overall. that's the upsell engine investors care about.
growth
ai tools and small business financing
Airo & GoDaddy Capital
incremental today
these initiatives are still small enough to be described as incremental inside a $5.0B business. the bet is not scale yet. it's deeper customer spend per account.
early
Key numbers
$7.20
fy2026 eps est
$5B
fy2026 rev est
20.8x
trailing p/e
n/a
dividend yield
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $3.8B (18% of capital)
- net profit margin 25.5% — keeps 26 cents of every dollar in revenue
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in GDDY 3 years ago → it's now worth $16,980.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
GoDaddy's latest quarter showed revenue of $1.27B, up 10% vs. prior year, while EPS of $1.51 beat forecasts.
Operations were fine. The stock still fell because investors cared more about softer forward expectations than the quarter that just landed.
$1.27B
revenue
$1.51
eps
28.0%
gross margin
the number that mattered
The 10% revenue growth mattered most because it beat expectations, but not by enough to erase concern about slower growth ahead.
-
revenues rose 10% vs. prior year to $1.27 billion, exceeding our forecast, while earnings of $1.51 per share also topped estimates.applications and commerce continued to lead growth, advancing at a mid-teens pace, while the core platform delivered steady gains. profitability remained a highlight, supported by disciplined cost controls, expanding margins, and strong free cash flow generation.
-
the company raised its full-year 2025 revenue outlook to the top end of its targeted growth range, now calling for roughly 8% top-line expansion.momentum across higher-value customer cohorts remains encouraging, with average revenue per user and attachment rates continuing to trend higher. the company is also seeing tangible benefits from its ai initiatives, particularly within the airo platform, which is increasingly embedded across marketing, commerce, and website-building tools. godaddy capital is contributing incremental growth as well, strengthening the company’s broader ecosystem for small- and mid-sized businesses.
-
despite these operational gains, the stock has retreated more than 10% in value since our early october review, reflecting broader market volatility and some investor caution toward consumer-facing technology names.still, fundamentals remain intact, with strong cash flow, ongoing share repurchases, and a scalable business model. looking ahead, godaddy appears positioned to deliver steady earnings growth, supported by ai-driven product innovation, improving customer mix, and continued operating leverage.
-
accounts with a long-term investment horizon may be rewarded nicely from a position here.
-
indeed, our 3 to 5-year target price range shows a range of $220-$330.
source: company earnings report, 2026
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What could go wrong
the #1 risk is small-business spending softness hitting renewals and upsells.
med
small-business demand slows
GoDaddy sells to the exact customer base that gets cautious first when the economy tightens. if renewals weaken or customers stop adding commerce and marketing tools, the whole $5.0B revenue base feels it.
impact: this is the cleanest way an 8.3% growth story turns into a much slower one.
med
upsell engine disappoints
applications and commerce is growing at a mid-teens pace today. if that growth cools toward the 4.2% pace of the core platform, the mix shift that supports margin expansion gets weaker.
impact: you would be left owning a steadier but less exciting web-services company at roughly 20.8x trailing earnings.
med
the market keeps de-rating the stock
432 institutions sold the stock last quarter while 338 bought. that's not collapse. it is a signal that the big-money vote at the margin has been negative.
impact: even if EPS reaches $7.20, valuation can still compress if sentiment stays cold.
all three risks point to the same math: a $17B company growing about 8% can work fine at 20.8x earnings, but it does not have much room for a slowdown.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
watch whether revenue stays near the roughly 8% growth path management laid out and whether EPS keeps building on the $1.51 quarterly print.
metric
applications and commerce growth
this business is growing at a mid-teens pace versus 4.2% for the core platform. if that gap narrows, the best part of the story gets less interesting.
trend
customer monetization
management keeps pointing to higher-value customer cohorts and better attachment rates. that's corporate language for getting more dollars out of the same customer base.
risk
institutional flow
338 buyers versus 432 sellers is the current mood. if that flips, sentiment may stop fighting the fundamentals.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup, not a near-term breakout.
risk profile
average
stability score 3 — this sits near the middle of the market on risk. not a bunker stock, not chaos either.
chart momentum
average
technical score 3 — the chart is not giving you a strong signal either way.
earnings predictability
40 / 100
earnings predictability is weak enough that you should expect a few awkward quarters even if the long-term story stays intact.
source: institutional data
Institutional activity
338 buyers vs. 432 sellers in 3q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$109
$225
$126
current price
$167
target midpoint · +32% from current · 3-5yr high: $330 (+160% · 27% ann'l return)
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