GoDaddy Inc. - Class A (NYSE:GDDY), the domain registrar and web services provider for small businesses, reported financial results for the fourth quarter and full fiscal year 2025. The company delivered a mixed performance, meeting revenue expectations for the quarter but issuing guidance for the current period that fell short of Wall Street forecasts. This dynamic appears to be the primary driver behind a sharp negative reaction in the stock during after-hours trading.
Earnings and Revenue Versus Estimates
The company's fourth-quarter results presented a clear split between top-line performance and bottom-line strength.
- Revenue: GoDaddy reported Q4 revenue of $1.27 billion. This represented a 6.8% year-over-year increase but came in approximately 1.8% below the analyst consensus estimate of $1.30 billion.
- Earnings Per Share (EPS): On a non-GAAP basis, the company reported earnings of $1.80 per share. This significantly outperformed expectations, beating the analyst consensus estimate of $1.61 per share by nearly 12%.
The divergence suggests effective cost management and operational efficiency during the quarter, allowing profitability to expand even as revenue growth slightly missed the mark. However, investor focus quickly shifted to the company's forward-looking statements.
Market Reaction and Forward Guidance
The immediate market reaction to the earnings release was decisively negative. In after-hours trading following the announcement, GoDaddy's stock fell approximately 7.8%. This sell-off is largely attributed to the company's outlook for the first quarter of 2026.
- Q1 2026 Revenue Guidance: GoDaddy provided revenue guidance of $1.26 billion for the upcoming quarter. This figure falls about 1.4% below the current analyst consensus estimate of $1.28 billion.
- Full-Year 2026 Context: Analyst estimates for the full fiscal year 2026 project revenue of $5.39 billion and EPS of $7.31. The company's own guidance for Q1, which sets the initial trajectory for the year, has introduced caution among investors concerned about the pace of growth.
While the company did not provide full-year guidance in the press release, the lower-than-expected starting point for Q1 has cast a shadow over the strong quarterly profit beat. The market's reaction indicates that future growth prospects are currently weighing more heavily on investor sentiment than past profitability.
Summary of Key Announcements
According to the press release issued on February 24, 2026, GoDaddy highlighted its full fiscal year 2025 results alongside the Q4 figures. The company directed investors to its Investor Relations website for the complete earnings release, presentation, and prepared remarks. The core takeaways from the available data are a quarter of solid profitability overshadowed by a cautious near-term revenue outlook that failed to meet Wall Street's expectations.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review more data on GoDaddy's earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
