GoDaddy Q2 2026: Revenue Reaches $1.3B, Net Income Rises 20%, but $170M Patent Risk Looms
GDDY sits 22% above its 52-week low of $71.59.
Summary
GoDaddy's Q2 2026 results beat expectations with $1.3B in revenue and $240.1M in net income, but a pending $170M patent appeal adds uncertainty. Aggressive buybacks and strong cash flow support the stock.
Key Events · Earnings and Guidance · GDDY
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Revenue Climbs 6.6% to $1.3B
Total revenue reached $1.298 billion, with Applications and Commerce surging 11% to $514.8 million and Core Platform growing 3.9% to $783.2 million.
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Net Income Jumps 20% to $240.1M
Net income rose to $240.1 million from $199.9 million a year ago, with diluted EPS of $1.83 versus $1.41, driven by operating leverage and lower depreciation.
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$170M Patent Verdict Under Appeal
A jury found GoDaddy infringed two Express Mobile patents; the court upheld the verdict but reversed willfulness. GoDaddy filed an appeal on June 15, 2026, and estimates possible loss exposure up to $170 million.
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Aggressive Buybacks Continue
GoDaddy repurchased $833.6 million of stock in H1 2026, retiring 9.6 million shares. $1.33 billion remains under the $3 billion authorization through 2027.
Analysis · GDDY · Technology
A strong second quarter saw revenue climb 6.6% to $1.3 billion and net income jump 20% to $240.1 million, fueled by double-digit growth in Applications and Commerce. Operating margins widened as depreciation and amortization fell sharply. However, the company is appealing a $170 million patent infringement verdict — a potential liability that could erase more than two-thirds of quarterly net income if upheld. The balance sheet remains leveraged with $3.8 billion in debt, but $1.15 billion in cash and robust operating cash flow of $914 million year-to-date provide ample liquidity. Share buybacks continued aggressively, with $833.6 million spent in the first half, leaving $1.33 billion remaining under the $3 billion authorization.
At the time of this filing, GDDY was trading at $87.00 on NYSE in the Technology sector, with a market capitalization of approximately $13.2B. The 52-week trading range was $71.59 to $165.94. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.