Key Highlights

  • Total Revenue rose 6.0% to $1,341.8 million from $1,265.3 million a year earlier.
  • Operating income increased 22.2% to $362.5 million, with Net Income up 24.4% to $261.8 million.
  • Diluted EPS was $2.08, compared with $1.51 in the third quarter of 2025.
  • Applications and Commerce revenue grew 9.0% to $524.3 million, with segment EBITDA Margin at 46.9%.
  • The company repurchased about 14.6 million shares for $1,311.0 million over nine months.

Operating income outpaces revenue growth in the third quarter

GoDaddy (NYSE:GDDY) serves entrepreneurs, small businesses, individuals, developers, designers and domain investors with domain registrations, website building tools, hosting, security and commerce products. The company filed its Quarterly Report for the period ended September 30, 2026, on October 30, 2026.

Total revenue was $1,341.8 million, up 6.0% on both a reported and constant currency basis, from $1,265.3 million. Operating Income rose 22.2% to $362.5 million, lifting the Operating Margin to 27.0% from 23.4%. Net income grew 24.4% to $261.8 million, or $2.08 per diluted share, against $210.5 million, or $1.51.

Normalized EBITDA, a non-GAAP measure, was $449.3 million, up 10.0% from $408.6 million.

Applications and Commerce leads at a 46.9% margin

The Applications and Commerce segment, which houses the proprietary website building and commerce products, generated revenue of $524.3 million, up 9.0% from $481.0 million. Segment EBITDA rose 11.9% to $246.0 million, and the margin widened 120 basis points to 46.9%.

The company attributed the profit increase to higher revenue, partly offset by an $11.0 million rise in cost of revenue.

Core Platform grows at a steadier 4.2% pace

Core Platform revenue, which covers domain registrations and renewals, aftermarket domain sales and standalone hosting and security products, rose 4.2% to $817.5 million from $784.3 million. Segment EBITDA increased 4.0% to $268.9 million, and the margin was 32.9%, a decline of 10 basis points.

Customers totaled 20,497 thousand at September 30, 2026, compared with 20,422 thousand at December 31, 2025, while domains under management reached 82,435 thousand, up from 80,793 thousand.

Lower Depreciation and steady spending widen margins

Total costs and operating expenses were $979.3 million, up only 1.1% on a calculated basis from $968.6 million, which allowed operating margin to expand. Depreciation and amortization fell to $12.7 million from $28.4 million, and Marketing and Advertising was flat at $91.7 million versus $92.0 million.

Bookings were $1,431.7 million, up 5.7%, and annualized Recurring Revenue reached $4,513.9 million, up from $4,293.5 million. Average revenue per user was $253, compared with $237 a year ago.

Cash generation funds a $1.3 billion buyback

Net cash provided by Operating Activities was $487.7 million in the quarter, up 9.8%. For the nine months it was $1,401.7 million, up from $1,228.8 million, which the company tied to higher bookings.

Cash and cash equivalents were $1,119.8 million at September 30, 2026, compared with $1,080.9 million at the end of 2025. Long-term debt, net of current portion, was $3,756.4 million, and $1.2 billion was available under the revolving Credit facility.

Under a $3.0 billion repurchase authorization approved in April 2025 and running through the end of 2027, the company bought back approximately 14.6 million Class A shares for $1,311.0 million during the nine months. Net cash used in financing activities declined $57.4 million on lower repurchases.

What to watch next for GoDaddy

Revenue growth of 6.0% paired with 22.2% operating income growth shows how much of the improvement came from cost discipline and lower depreciation. The next reports will show whether Applications and Commerce can keep growing near 9% while Core holds its margin around 33%.