VeriSign (NASDAQ:VRSN) Announces Quarterly Earnings Results

VeriSign (NASDAQ:VRSN) issued its quarterly earnings results on Thursday. The information services provider reported $2.35 EPS for the quarter, missing the consensus estimate of $2.46 by ($0.11), FiscalAI reports. VeriSign had a negative return on equity of 39.20% and a net margin of 49.76%. The business had revenue of $443.00 million during the quarter, compared to the consensus estimate of $440.58 million. During the same quarter last year, the firm posted $2.27 earnings per share. VeriSign’s revenue was up 5.7% compared to the same quarter last year.

Here are the key takeaways from VeriSign’s conference call:

• Domain growth accelerated: The combined .com and .net base reached 182.5 million names, up 6.1% year over year, supported by record quarterly registrations of 13.1 million. Verisign raised and narrowed its 2026 domain-base growth outlook to 6.5%–7%.
• .web launch remains on track, with the sunrise period planned for mid-December, limited registration beginning in mid-January 2027, and general availability expected around April 2027. Verisign plans to use flexible pricing, including premium names, and expanded registrar marketing capabilities.
• Third-quarter revenue rose 5.7% year over year to $443 million, while diluted EPS was $2.35 versus $2.27 a year ago. Results included a $7.5 million pre-tax loss on assets held for sale, which reduced EPS by $0.06, and free cash flow declined to $261 million from $303 million largely because of higher cash taxes and employee and vendor payments.
• Verisign Informed, a certificate-revocation and digital-credential security service, is operational in Verisign’s infrastructure, with pricing expected by year-end and production delivery targeted for the first half of 2027. Management believes the service can leverage Verisign’s high-performance DNS infrastructure and existing registrar and security-provider channels.
• The renewal rate is expected to be 74.3%, down from 75.4% a year ago, because the domain base contains a larger mix of first-time renewals, which renew at roughly mid-40% rates versus mid-80% rates for previously renewed names. Management said first-time renewal rates have remained broadly stable so far.

VeriSign Trading Down 0.7%

Shares of VRSN traded down $2.12 during mid-day trading on Friday, reaching $302.47. The company’s stock had a trading volume of 279,382 shares, compared to its average volume of 818,567. The stock has a market cap of $27.31 billion, a P/E ratio of 32.75 and a beta of 0.69. The business has a 50-day simple moving average of $292.83 and a two-hundred day simple moving average of $283.46. VeriSign has a 1-year low of $208.86 and a 1-year high of $312.48.

VeriSign Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Tuesday, November 17th will be paid a $0.81 dividend. This represents a $3.24 annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, November 17th. VeriSign’s dividend payout ratio (DPR) is 35.14%.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on VRSN. Weiss Ratings upgraded shares of VeriSign from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, October 12th. Citigroup restated a “buy” rating on shares of VeriSign in a report on Friday. Robert W. Baird set a $380.00 price target on VeriSign in a research note on Friday. Wedbush increased their price target on VeriSign from $341.00 to $351.00 and gave the company an “outperform” rating in a research note on Monday. Finally, JPMorgan Chase & Co. lifted their price target on shares of VeriSign from $308.00 to $316.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $341.75.

Key VeriSign News

Here are the key news stories impacting VeriSign this week:

• Positive Sentiment: Third-quarter revenue rose 5.7% year over year to $443 million, exceeding analysts’ expectations of approximately $440.6 million. Operating income increased to $296 million from $284 million a year earlier. Verisign Reports Third Quarter 2026 Results
• Positive Sentiment: Management highlighted record domain registrations and continued growth in the .com and .net businesses. The planned .web launch also provides a potential future growth opportunity. Q3 2026 Earnings Call Highlights
• Positive Sentiment: The company approved a quarterly dividend of $0.81 per share, equivalent to $3.24 annually and a yield of about 1.1%, reinforcing shareholder returns. VeriSign Approves Cash Dividend
• Neutral Sentiment: Global domain-name registrations reached 411.6 million at the end of the third quarter, up 2.5% sequentially, indicating continued expansion in the addressable market. DNIB Domain Registration Report
• Negative Sentiment: Adjusted earnings were reported at $2.35 per share, below the $2.46 consensus estimate, despite rising from $2.27 in the prior-year quarter. Higher operating expenses of $147 million, versus $135 million a year earlier, added to investor concerns about cost growth. VeriSign Earnings Results
• Negative Sentiment: CEO D. James Bidzos disclosed another 3,300-share sale under a pre-arranged Rule 10b5-1 trading plan. While routine and relatively small compared with his remaining stake, repeated insider selling may weigh modestly on sentiment. VeriSign Insider Sale

Insider Activity

In other VeriSign news, CEO D. Bidzos sold 3,300 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $291.09, for a total value of $960,597.00. Following the transaction, the chief executive officer directly owned 394,927 shares of the company’s stock, valued at $114,959,300.43. This trade represents a 0.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 43,100 shares of company stock worth $12,574,391. Corporate insiders own 0.56% of the company’s stock.

About VeriSign

VeriSign, Inc (NASDAQ: VRSN) provides internet infrastructure services that support the global domain name system. The company operates the authoritative registry for the .com and .net top-level domains and provides registry services for certain other domains, helping maintain the databases that connect domain names with internet addresses.

The company’s services include domain name registry operations, domain name registration-related support for accredited registrars, and infrastructure designed to improve the availability, stability, and security of internet naming services.