Godaddy GDDY 2025Q2 Earnings Preview Upside Expected on Strong EPS Growth

Generated by AI AgentAinvestweb
Tuesday, Aug 5, 2025 12:02 pm ET1min read
Forward-Looking Analysis
GoDaddy Inc. is set to announce its Q2 2025 earnings on August 7, with expectations of $1.34 per share, reflecting a significant 21.8% growth compared to last year's $1.10 per share. Analysts predict fiscal 2025 earnings to reach $5.69 per share, marking a 17.3% increase from fiscal 2024's $4.85. The company has a mixed history, surpassing Wall Street estimates in two of the last four quarters but missing them in the other two. Revenue forecasts for the upcoming quarter are pegged at $1.21 billion. Analysts remain cautiously optimistic, with a "Moderate Buy" rating, supported by a mean price target of $217.88, suggesting a 28.6% upside potential.

Historical Performance Review
In Q1 2025, reported a revenue of $1.19 billion and a net income of $219.50 million, translating to an EPS of $1.55. The company achieved a gross profit of $753.80 million. Despite matching revenue expectations, GoDaddy's adjusted EPS of $1.27 fell short of analysts' consensus by 5.9%. This quarter saw a 2.1% increase in share value post-earnings release, reflecting market confidence in its performance.

Additional News
GoDaddy has shown robust stock growth, outperforming major indices with a 15.1% increase over the past year. The company operates in two key segments: Applications and Commerce and Core Platform, boasting a market cap of $24 billion. Analysts are optimistic about GoDaddy's future, projecting substantial EPS growth over the next two years. The company's stock has received mixed ratings from analysts, comprising nine "Strong Buys," one "Moderate Buy," and eight "Holds." GoDaddy anticipates full-year revenue between $4.86 billion and $4.94 billion, indicating continued expansion.

Summary & Outlook
GoDaddy's financial health appears strong, with consistent revenue growth and improved EPS forecasts. The company benefits from robust demand for its cloud-based technology products, which drive growth. Despite occasional misses on earnings expectations, the overall trajectory remains positive. Analysts' ratings and price targets suggest confidence in its future prospects. With a balance of growth potential and manageable risks, the outlook for GoDaddy is bullish, supported by its strategic positioning in the technology sector and continued expansion in key business segments.

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