GoDaddy (GDDY) Margin Compression Tests Bullish EPS Growth Narrative

Simply Wall St.09:38

GoDaddy (GDDY) just posted its FY 2025 numbers with Q4 revenue of US$1.27 billion and basic EPS of US$1.82, while trailing 12 month revenue came in at US$5.0 billion and EPS at US$6.34. Over the past ...

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Over the past ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-gddy/godaddy/news/godaddy-gddy-margin-compression-tests-bullish-eps-growth-nar\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>GoDaddy (GDDY) Margin Compression Tests Bullish EPS Growth Narrative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGoDaddy (GDDY) Margin Compression Tests Bullish EPS Growth Narrative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-26 09:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nyse-gddy/godaddy/news/godaddy-gddy-margin-compression-tests-bullish-eps-growth-nar><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GoDaddy (GDDY) just posted its FY 2025 numbers with Q4 revenue of US$1.27 billion and basic EPS of US$1.82, while trailing 12 month revenue came in at US$5.0 billion and EPS at US$6.34. Over the past ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-gddy/godaddy/news/godaddy-gddy-margin-compression-tests-bullish-eps-growth-nar\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4112","symbol_name":"金融交易所和数据","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nyse-gddy/godaddy/news/godaddy-gddy-margin-compression-tests-bullish-eps-growth-nar","article_id":"2614618310","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8030001-choice1-main-header/1585186837196"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nyse-gddy/godaddy/news/godaddy-gddy-margin-compression-tests-bullish-eps-growth-nar","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2614618310","pubTimestamp":1772069898,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"GoDaddy (GDDY) just posted its FY 2025 numbers with Q4 revenue of US$1.27 billion and basic EPS of US$1.82, while trailing 12 month revenue came in at US$5.0 billion and EPS at US$6.34. Over the past six quarters, revenue has moved from US$1.15 billion in Q3 2024 to US$1.27 billion in Q4 2025, with quarterly EPS ranging from US$1.36 in Q3 2024 to US$1.82 in the latest quarter. Investors may now focus on how these top line and EPS trends line up with expected earnings growth. With net margins...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BK4112":"金融交易所和数据","BLSG":"2倍做多BLSH ETF-Leverage Shares","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","LU1815336760.USD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"AUP\" (USD) INC","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2491049909.HKD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (HKD) ACC","BLSX":"Tradr 2X Long BLSH Daily ETF","LU2491050071.SGD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","LU0444971666.USD":"天利全球科技基金","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","GDDY":"Godaddy Inc.","LU2491050154.USD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (USD) ACC","BK4116":"互联网服务与基础架构","BK4585":"ETF&股票定投概念","BK4528":"SaaS概念","LU1642822529.SGD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"A\" (SGD) ACC","LU0957808578.USD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"ZU\" (USD) ACC","BK4588":"碎股","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC"},"translate_title":"GoDaddy(GDDY)利润率压缩测试看涨每股收益增长叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BLSG":0.6,"BLSX":0.6,"GDDY":1.98},"content_text":"GoDaddy (GDDY) just posted its FY 2025 numbers with Q4 revenue of US$1.27 billion and basic EPS of US$1.82, while trailing 12 month revenue came in at US$5.0 billion and EPS at US$6.34. Over the past six quarters, revenue has moved from US$1.15 billion in Q3 2024 to US$1.27 billion in Q4 2025, with quarterly EPS ranging from US$1.36 in Q3 2024 to US$1.82 in the latest quarter. Investors may now focus on how these top line and EPS trends line up with expected earnings growth. With net margins lower than a year ago and forecasts pointing to faster EPS growth than revenue, the story now pivots to how sustainably GoDaddy can protect and rebuild profitability. See our full analysis for GoDaddy. With the headline numbers on the table, the next step is to see how this earnings print lines up against the main GoDaddy narratives investors follow and where those stories might need a re-think. See what the community is saying about GoDaddy NYSE:GDDY Revenue & Expenses Breakdown as at Feb 2026 AdvertisementMargins Slip From 20.5% To 17.7%  Over the last 12 months, net profit margin sits at 17.7%, compared with 20.5% a year earlier, on trailing revenue of about US$5.0b and net income of US$875 million. Consensus narrative sees AI driven products and higher margin SaaS bundles supporting margins. However, the current 17.7% trailing margin versus the earlier 20.5% highlights that:\n     High margin Applications & Commerce growth and ARPU of US$230 are being weighed against recent margin compression in the reported numbers. Forecasts for earnings to grow faster than revenue, at about 12.24% vs 5.3% a year, lean on margin improvement that is not yet visible in the trailing figures.    EPS Climb Outpaces Revenue  Across FY 2025, quarterly revenue moved from US$1,194.3 million in Q1 to US$1,273.9 million in Q4, while basic EPS rose from US$1.55 in Q1 to US$1.82 in Q4 and trailing 12 month EPS reached US$6.34. Bulls argue that AI tools like Airo and bundling can accelerate both revenue and net margin expansion, and the current spread between projected earnings growth of about 12.24% a year and forecast revenue growth of about 5.3% a year:\n     Supports the view that operating leverage can lift EPS faster than sales if higher margin software and services keep gaining share. Also leaves bulls looking for that EPS trend to remain in place, because trailing net income of US$875 million is below the earlier US$936.9 million level flagged in the longer term history.    Have bulls already priced in a lot of this EPS story into GoDaddy, or is there more room if AI bundles keep gaining traction? 🐂 GoDaddy Bull Case P/E Discount And DCF Gap  With a current share price of US$79.12, GoDaddy trades on a P/E of 12.2x compared with a US IT industry average of 20.1x and peers at 43.8x, and the stock sits below a DCF fair value of about US$267.38. Bears highlight high debt and uneven recent earnings compared with roughly 42.6% annual earnings growth over five years, and the current setup:\n     Challenges the view that the market is already paying up, since the 12.2x P/E sits far under both industry and peer multiples while earnings forecasts still point to growth. At the same time keeps a cautious focus on whether the move from a prior margin level of 20.5% to 17.7% and the step down in trailing net income versus the earlier US$936.9 million figure can improve enough to justify any closing of that gap to DCF fair value.    Skeptics point to debt and margin pressure, while the current P/E and gap to DCF fair value leave plenty for bears to stress test. 🐻 GoDaddy Bear Case Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GoDaddy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. With all this in mind, are you leaning bullish or cautious on GoDaddy right now? Take a moment to weigh the full picture for yourself, including 3 key rewards and 2 important warning signs. See What Else Is Out There GoDaddy is working through margin compression from 20.5% to 17.7% and trailing net income below earlier levels, even as the market debates its P/E discount. If that mix of debt concerns and softer profitability has you on edge, now is a good moment to line up alternatives with stronger balance sheets using solid balance sheet and fundamentals stocks screener (41 results).  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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