GoDaddy (NYSE:GDDY) shares remained under close watch Tuesday after the company reported fourth-quarter earnings that comfortably beat Wall Street estimates, signaling that its shift toward AI-integrated services is yielding higher profitability.
The web-enablement giant posted fourth-quarter net income of $245.1 million, or $1.80 per share, significantly outperforming the $1.58 per share anticipated by analysts.
While the company’s revenue of $1.27 billion was largely in line with consensus forecasts—representing approximately 6% growth year-over-year—the earnings beat was fueled by a favorable mix of high-margin subscription products.
A key driver of the quarter’s performance was the Applications & Commerce segment, which grew in the mid-teens as small business owners adopted the company’s "Airo" AI tools.
These services, which automate website design and marketing, have contributed to higher average revenue per user (ARPU) and improved retention rates.
Meanwhile, the Core Platform segment, which includes legacy domain registrations, saw low single-digit growth as the company exited certain registry contracts.
For the full year 2025, GoDaddy reported a total profit of $875 million on revenue of $4.95 billion.
Looking ahead, GoDaddy provided a stable outlook for the start of the new fiscal year, projecting Q1 2026 revenue between $1.25 billion and $1.27 billion.