GoDaddy (GDDY) opened 2026 with Q1 revenue of US$1.27 billion and basic EPS of US$1.61, setting the tone for how its hosting and domains business is translating scale into earnings. The company reported quarterly revenue of US$1.19 billion in Q1 2025 and US$1.27 billion in Q1 2026, with basic EPS moving from US$1.55 to US$1.61 over the same period, while trailing twelve month EPS reached US$6.39 on US$5.02 billion of revenue. With net profit margin at 17.3% over the last year, these results highlight a business where profitability is increasingly central to the story.

See our full analysis for GoDaddy.

With the headline numbers on the table, the next step is to see how this earnings profile compares with the main narratives investors already have in mind about GoDaddy and where those views might need updating.

Margins Hold At 17.3% While Growth Slows

• Over the last 12 months, GoDaddy generated US$5.0b of revenue and US$870.1 million of net income, which works out to a 17.3% net margin compared with 16.2% a year earlier, while earnings grew 15.3% over the same period versus a 5 year earnings growth average of 34.7% per year.
• Consensus narrative expects AI driven products and higher margin SaaS to keep lifting profitability, yet this data shows a mix of support and friction:
  • The margin at 17.3% lines up with the idea of a business leaning more on higher margin revenue. However, the step down from a 5 year 34.7% annual earnings growth pace to 15.3% suggests that translating those products into the same level of earnings growth is getting harder.
  • Analysts in the balanced view talk about revenue heading toward US$5.9b and earnings toward US$1.3b, while the latest trailing numbers at US$5.0b and US$870.1 million show progress but also leave a sizeable gap that future quarters would need to close.

Q1 EPS Pattern Vs Full Year Momentum

• Across the last six quarters, basic EPS moved from US$1.40 in Q4 2024 to US$1.55 in Q1 2025, then to US$1.61 in Q1 2026, with a peak of US$1.82 in Q4 2025, while trailing twelve month EPS in Q1 2026 sits at US$6.39.
• Bulls point to operating leverage from AI bundling and automation, and the earnings profile here partly fits that story but not cleanly:
  • The Q1 2026 EPS of US$1.61 is higher than the US$1.55 in Q1 2025 and US$1.40 in Q4 2024, which lines up with a bullish view that profitability can scale. Yet the stronger Q4 2025 EPS of US$1.82 shows that quarter to quarter, earnings are not moving in a straight line.
  • With trailing EPS at US$6.39 versus bullish expectations of earnings reaching about US$1.3b in a few years, the current run rate supports the idea that the business is solidly profitable, but also underlines how much further absolute earnings would need to climb for the more optimistic scenario.

Have a look at how bullish investors connect these margin and EPS trends to their longer term case for GoDaddy 🐂 GoDaddy Bull Case.

Valuation Gap Vs Growth Forecasts

• The shares trade at US$86.76 with a P/E of 13.2x against a peer average of 49.2x and IT industry average of 20.8x, while the DCF fair value in this dataset is US$265.39 and earnings and revenue are forecast to grow about 13.0% and 5.2% per year, both below the broader US market forecasts cited.
• Bears argue that competition and maturing markets could cap growth, and these figures both support and challenge that cautious stance:
  • The forecast earnings growth of about 13.0% and revenue growth of about 5.2% give some backing to the idea that growth may not match broader market projections, which is a key plank of the bearish view.
  • At the same time, a P/E of 13.2x and a DCF fair value of US$265.39 versus a US$86.76 share price indicate that the market is already pricing in these more modest growth expectations. This complicates a simple bearish argument built only on slower growth.

If you are weighing those slower growth forecasts against the low P/E, it is worth seeing how the more cautious camp interprets the same numbers 🐻 GoDaddy Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GoDaddy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, the real question is how this balance fits your own approach. Move quickly, review the details, and weigh the implications using the full breakdown of 4 key rewards and 2 important warning signs

See What Else Is Out There

GoDaddy's slower forecast revenue growth of about 5.2% and earnings growth of about 13.0% suggest its expansion story is less aggressive than some investors might prefer.

If that tempered growth profile feels limiting, compare it with companies showing stronger potential by scanning the 51 high quality undervalued stocks and see which ideas better match your return expectations.

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.