It's been a sad week for GoDaddy Inc. (NYSE:GDDY), who've watched their investment drop 14% to US$88.45 in the week since the company reported its second-quarter result. The result was positive overall - although revenues of US$1.3b were in line with what the analysts predicted, GoDaddy surprised by delivering a statutory profit of US$1.83 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from GoDaddy's 17 analysts is for revenues of US$5.24b in 2026. This reflects a credible 2.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$7.27, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$5.24b and earnings per share (EPS) of US$7.12 in 2026. So the consensus seems to have become somewhat more optimistic on GoDaddy's earnings potential following these results.

The average the analysts price target fell 6.4% to US$105, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic GoDaddy analyst has a price target of US$170 per share, while the most pessimistic values it at US$80.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GoDaddy's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 5.3% growth on an annualised basis. That is in line with its 6.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. So it's pretty clear that GoDaddy is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards GoDaddy following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of GoDaddy's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on GoDaddy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple GoDaddy analysts - going out to 2028, and you can see them free on our platform here.

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.