GoDaddy (GDDY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 7% year-over-year to $1.3 billion, with Applications & Commerce up 11% and Core Platform up 4%; international revenue rose 8%.

• Operating income increased 29% to $342.5 million, with a 26% margin; net income rose 20% to $240.1 million, with an 18% margin.

• Normalized EBITDA margin expanded to 33.4%, up 210 basis points year-over-year, reaching $434 million.

• Free cash flow for Q2 was $443 million, up 13% year-over-year; over 95% of free cash flow deployed to share repurchases.

• Accelerated AI transformation with Airo, achieving a 5x increase in annualized bookings run rate to $50 million and driving rapid customer adoption.

Financial highlights

• Applications & Commerce revenue grew 11% to $515 million; Core Platform revenue up 4% to $783 million.

• Annualized recurring revenue (ARR) reached $4.4 billion; ARPU increased 9% to $250.

• Normalized EBITDA grew 14% to $434 million; free cash flow conversion remained above one-to-one.

• Domains revenue grew 5% to $470 million; Aftermarket revenue increased 9%.

• Net income per diluted share was $1.83, up from $1.41 in Q2 2025.

Outlook and guidance

• Q3 2026 revenue expected between $1.315–$1.335 billion, representing 5% growth at midpoint.

• Full-year 2026 revenue guidance narrowed to $5.215–$5.255 billion, up 6% year-over-year at midpoint.

• Anticipates low double-digit growth in Applications & Commerce and low single-digit growth in Core Platform for Q3 and full year.

• Reaffirms NEBITDA margin target above 33% and free cash flow target of ~$1.8 billion for 2026.

• Management expects continued growth in subscription-based products and international markets.