GoDaddy NYSE:GDDY, a domain-registration and website-services company serving entrepreneurs and small businesses, plunged approximately 21.1% in Friday's regular-session trading as of 10:19 a.m. ET after narrowing its 2026 revenue forecast. The company now expects revenue between $5.215 billion and $5.255 billion, compared with its previous range of $5.195 billion to $5.275 billion. Reuters reported that slower adoption of GoDaddy's AI tools and weaker customer acquisition contributed to investor concern.
Second-quarter revenue increased approximately 7% to $1.30 billion, broadly matching market expectations. Net income rose 20.1% to $240.1 million, while normalized EBITDA increased 13.7% to $434.1 million. Free cash flow advanced 13.3% to $443.5 million. Applications and Commerce revenue increased 11% to $514.8 million, while Core Platform revenue rose 4% to $783.2 million. The company expects third-quarter revenue between $1.315 billion and $1.335 billion, representing approximately 5% growth at the midpoint.
The midpoint of GoDaddy's annual revenue forecast remains $5.235 billion, but the range narrowed from $80 million wide to $40 million. That unchanged midpoint suggests the market reaction was driven more by reduced flexibility and concerns about growth composition than by a large numerical reduction in annual expectations. GoDaddy repurchased approximately 9.8 million shares for $851.8 million during the first half, producing a 7% gross reduction in diluted shares. Investors may now assess whether customer acquisition improves and whether the company's Airo AI tools begin making a larger contribution to revenue.