GoDaddy forecasts annual revenue below estimates on slow AI-related adoption

SelfRugger · 2026-03-16T13:50:50+00:00

GoDaddy's revenue forecast fell short of Wall Street expectations due to slower AI adoption and customer acquisition, leading to a 6% drop in shares. Despite this, the company reported fourth-quarter revenue aligned with estimates and a profit increase.

SelfRugger

2026-03-16 13:50:50

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GoDaddy forecasts annual revenue below estimates, shares fall

Reuters

Wed, February 25, 2026 at 6:34 AM GMT+9 1 min read

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+5.17%

Feb 24 (Reuters) - GoDaddy forecast annual revenue below Wall Street estimates on Tuesday, a sign ‌of slower adoption of its artificial‑intelligence tools ‌and weaker customer acquisition.

Shares of the company fell more than 6% in extended trading.

The domain registrar has invested heavily in AI tools designed to help small- and medium‑sized businesses build and automate their ‌online presence.

The company ⁠faces intensifying competition from companies such as Wix, which has aggressively expanded its ⁠own AI‑powered website‑building tools, pressuring GoDaddy’s ability to accelerate customer additions and premium upgrades.

Airo, GoDaddy’s AI offering allows users to automatically create logos, websites ‌and branded marketing assets using information from a customer’s existing online or social‑media footprint, reducing the time and cost involved in establishing a digital identity.

The company forecast annual revenue between $5.20 billion and $5.28 ‌billion, below analysts’ average estimate of $5.29 billion, according to data compiled by LSEG.

For the fourth quarter, GoDaddy reported ‌revenue of $1.27 billion, largely in line with estimates.

The company’s profit came in at $1.80 per share for the quarter ended December 31, compared with $1.36 ‌a year earlier.

(Reporting by Anhata Rooprai and Kritika Lamba in Bengaluru; Editing by Jonathan Ananda and Maju Samuel)

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