GoDaddy Forecasts Lower Annual Revenue Amid Slow AI Tool Adoption
GoDaddy shares fell after the company forecast annual revenue below estimates. The firm cited slow AI tool adoption and weak growth in its hosting business.
Insights:
GoDaddy Inc. announced on February 24, 2026, that it expects annual revenue to fall between $5.20 billion and $5.28 billion, a range that sits below the $5.29 billion average estimate projected by Wall Street analysts. The forecast triggered an immediate market reaction, with the company's shares falling nearly 8% in after-hours trading.
Management attributed the lower-than-anticipated outlook to the slow adoption of GoDaddy's artificial-intelligence tools among its user base. Additionally, the company reported weaker customer acquisition within GoDaddy's hosting business, further impacting its revenue projections for the year. The figures were measured against consensus data provided by LSEG.
