GoDaddy set to report Q2 earnings as AI products drive growth expectations

GoDaddy Inc. is scheduled to report second-quarter 2026 earnings Thursday, with analysts projecting revenue of $1.29 billion and earnings per share of $1.72, according to consensus estimates compiled by Zacks.

"The results validate our AI-native product strategy and demonstrate accelerating customer adoption," GoDaddy Chief Executive Officer Aman Bhutani said on the company's first-quarter earnings call in May. "Airo AI Builder achieved an annualized bookings run rate of over $10 million within weeks of its beta launch."

The consensus revenue estimate of $1.29 billion would represent 6.3% year-over-year growth, while the EPS forecast of $1.72 marks a 22% increase from the year-ago quarter's $1.41. GoDaddy has beaten earnings estimates in all four of the past quarters, delivering an average surprise of 6.1%.

Analysts expect Applications & Commerce revenue of $518 million, up 11.6% from a year earlier, and Core Platform revenue of $776 million, a 2.9% increase. The company's Airo AI Builder, which integrates artificial intelligence into website creation and domain management, has been a key growth driver, with management planning to increase targeted paid marketing for the product in the second quarter funded through operational efficiencies.

Wedbush Securities rates GoDaddy at Outperform with a $109 price target, projecting full-year 2026 revenue of $5.3 billion and diluted GAAP EPS of $7.29. The firm forecasts $5.6 billion in revenue and $9.18 in EPS for 2027.

The company has also upgraded its Websites + Marketing platform with advanced AI capabilities, with early tests in the domains funnel exceeding expectations. GoDaddy has deployed AI-powered automation in customer support through its Airo Care system and in sales operations, improving resolution rates and conversion, particularly in non-English markets.

GoDaddy faces headwinds from intense competition in the web services market and sensitivity among its small-business customer base to macroeconomic conditions. Periodic bookings volatility tied to product and partner changes also poses risks to quarterly performance.

The guidance raise from the first quarter signals management expects AI-driven demand to accelerate through the second half of 2026. Investors will watch Thursday's call for updated segment margins and any new mid-term targets ahead of the company's planned investor event later this year.

This article is for informational purposes only and does not constitute investment advice.