Why GoDaddy’s latest earnings are in focus

GoDaddy (GDDY) is back under the spotlight after fourth quarter results topped expectations, but 2026 revenue guidance and a year over year drop in full year net income have sharpened investor attention.

The earnings update, combined with cautious commentary on the new go to market approach and a large ongoing buyback, has prompted several firms to rerun their GoDaddy math without changing their overall stance.

The recent results and 2026 outlook arrive after a tough stretch, with a 90 day share price return of a 27.5% decline and a 1 year total shareholder return of a 45.9% decline, even though the 3 year total shareholder return is 24.21%. As a result, current momentum looks more cautious than the longer term picture.

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With GoDaddy trading at US$93.13 against an average analyst target of US$119.43 and an indicated 64% intrinsic discount, the key question is whether this gap signals a genuine opportunity or whether markets are already pricing in future growth.

Most Popular Narrative: 22% Undervalued

With GoDaddy’s fair value narrative sitting at about $119.43 against a last close of $93.13, the current setup hinges on whether earnings, margins and AI driven products can carry that gap.

Large scale adoption of subscription based SaaS and bundling initiatives, enabled by accelerated AI driven product development, is shifting revenue mix toward recurring and higher margin streams, improving revenue predictability and EBITDA margin expansion (targeting 33% by 2026).

Want to see what sits behind that higher margin story? The most followed narrative leans on steadier subscription revenue, rising profitability and a compressed future earnings multiple. The numbers behind that mix tell a very specific earnings path.

Result: Fair Value of $119.43 (UNDERVALUED)

However, this hinges on whether GoDaddy can fend off tougher competition and prove that its AI products can keep customer churn, pricing pressure and execution missteps in check.

Next Steps

If this mix of risks and rewards feels finely balanced, it is worth acting soon to weigh the data yourself and decide where you stand. You can quickly scan 3 key rewards and 1 important warning sign to see how others are thinking about that balance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.