GoDaddy (GDDY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 7% year-over-year to $1.3 billion, with strong growth in both Applications & Commerce and Core Platform segments, and international revenue up 8%.

• Operating income rose 29% year-over-year to $342.5 million, with net income up 20% to $240.1 million and margins improving.

• Normalized EBITDA reached $434.1 million, up 14% year-over-year, with margin expanding to 33.4%.

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

• Launched unified Airo AI platform, driving a 5x increase in annualized bookings run rate to $50 million and rapid customer adoption.

Financial highlights

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

• ARR reached $4.4 billion, ARPU increased 9% to $250, and customer retention exceeded 85%.

• Bookings totaled $1.4 billion, up 6% year-over-year.

• Gross margin improved as costs and operating expenses fell to 73.6% of revenue.

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

Outlook and guidance

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

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

• Normalized EBITDA margin projected at or above 33% and free cash flow target reaffirmed at ~$1.8 billion.

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

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