GoDaddy (NYSE:GDDY) saw its shares fall roughly 9% after the company issued fiscal 2026 revenue guidance that fell short of investor expectations.
The web services firm placed its total revenue target for fiscal 2026 in a range from $5.19 billion to $5.28 billion.
Analysts at Barclays said the guidance suggests growth will decelerate to below 7%, a pace they described as "tough for bulls to defend in this market backdrop, even if bookings should accelerate as the year progresses off a first quarter low point." That view reflects concern that slower top-line momentum could make it harder for share prices to advance in the near term.
William Blair analysts provided a valuation frame, noting that "GoDaddy is trading at 7 times our 2027FCF estimate based on the aftermarket price of $84.70." The firm highlighted progress in the company’s Airo and Airo.ai initiatives and in its pricing and packaging efforts, though it said pricing and packaging were not a primary focus of the most recent earnings release.
William Blair also pointed to the shifting revenue mix within GoDaddy’s A&C segment. As A&C contribution grows, the analysts said this could support margin improvement because that segment carries a relatively stronger margin profile. Still, they cautioned that the market has categorized GoDaddy as high risk within the AI trade amid intensifying competition in the website-building space. While website building remains a small portion of GoDaddy’s current revenue, William Blair described it as a sizable potential growth avenue going forward.
Investors, the firm added, will be seeking concrete adoption metrics for the Airo AI product family and evidence of acceleration in A&C growth. William Blair said the recent quarter represented "a step back on that front," and until adoption trends become clearer, shares are likely to trade in a constrained range. The analysts nonetheless stated they remain optimistic about the planned Airo.ai launch later this year.
Barclays, while acknowledging "a few bright spots" in the company’s results and commentary, signaled it expects analyst estimates to move lower and sees "a tougher path for shares to work near-term."
Taken together, the guidance and subsequent analyst commentary underline two competing dynamics: product development and margin potential on one hand, and near-term growth deceleration and estimate risk on the other. Market participants will be watching for clearer adoption data on Airo and shifts in A&C revenue mix before adjusting their longer-term stance.