GoDaddy Inc. generated five news stories in the 24 hours to 1 November, against a usual 1.4 a day. The coverage centers on Q3 earnings results, Airo adoption momentum, and AI-driven margin expansion, alongside discussion of a securities lawsuit and whether the stock's valuation remains justified after the beat. The free-cash-flow margin of 33.7% is above every past reading in the company's own record, which ran from 17.4% to 33.4%.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 7.5% | 19.5% | 27.6% |
| FY25 Q1 | 7.7% | 20.7% | 29.4% |
| FY25 Q2 | 7.9% | 21.5% | 30.6% |
| FY25 Q3 | 8.7% | 21.9% | 31.6% |
| FY25 Q4 | 8.3% | 22.8% | 31.8% |
| FY26 Q1 | 7.8% | 23.7% | 32.7% |
| FY26 Q2 | 7.4% | 24.8% | 33.4% |
| FY26 Q3 | 6.4% | 25.7% | 33.7% |
The value hinges on growth more than margins
The free-cash-flow margin has reached a new high for the company. It stands at 33.7%, exceeding the previous maximum of 33.4% found in its historical quarterly data. This figure is up 2.1 percentage points from a year earlier.
Operating profitability is also at a record level. The operating margin of 25.7% is above every past reading in the company's own record, which ranged from 3.0% to 24.8%. This margin widened by 3.8 percentage points over the same period.
Profit is growing faster than sales. Net income rose 16.1% over the twelve months to Q3 2026, while revenue growth was 6.4%. More of each extra dollar of revenue is reaching the bottom line as a result.
Growth has slowed recently. Revenue over twelve months rose 6.4%, which is 1.0 percentage points less than the rate a quarter earlier. This current growth rate is higher than only 19% of the company's own past readings, which have ranged from 3.0% to 19.2%.
The valuation is sensitive to growth rates rather than margins. In our model, growth 5 percentage points lower would cut the value by 26.7%. A free-cash-flow margin 1 percentage point lower would lower it by only 3.0%.
The free-cash-flow margin of 33.7% is above every past reading in the company's own record, which ran from 17.4% to 33.4%
Today's free-cash-flow margin of 33.7% is above every one of the company's own past quarterly readings, which have ranged from 17.4% to 33.4%. Today's operating margin of 25.7% is above every past reading in the range of 3.0% to 24.8%. Today's twelve-month revenue growth rate of 6.4% is higher than 19% of past readings, which have ranged from 3.0% to 19.2%.
What Godaddy's share price implies against our model
In our model, growth 5 percentage points lower would lower the value by 26.7%, and growth 5 percentage points higher would raise it by 34.9%. A free-cash-flow margin 1 percentage point lower would lower it by 3.0%.
What the filings cannot tell you at Godaddy
Our figures run to Q3 2026, from the company's own filings; they cannot confirm, explain or rule out anything in the reports. The figures on profit growth and margins bear on the coverage of AI-driven margin expansion and valuation justification.