VeriSign (NASDAQ:VRSN) Releases Earnings Results, Misses Estimates By $0.11 EPS

Key Points

• VeriSign missed earnings expectations: Third-quarter EPS was $2.35, $0.11 below consensus, although revenue increased 5.7% year over year to $443 million and exceeded estimates. Free cash flow declined to $261 million, partly due to higher cash taxes and payments.
• Domain growth remains strong: The .com and .net base reached 182.5 million names, up 6.1% year over year, prompting VeriSign to raise its 2026 growth outlook to 6.5%–7%. The company also remains on track to launch .web in stages beginning in late 2026 and early 2027.
• Analyst sentiment is favorable but valuation is elevated: Wedbush raised its price target to $351, while the consensus rating remained “Moderate Buy” with a $335.50 target. Shares traded near their 52-week high at a P/E ratio above 33, despite falling after the EPS miss.

VeriSign (NASDAQ:VRSN - Get Free Report) posted its quarterly earnings data on Thursday. The information services provider reported $2.35 earnings per share for the quarter, missing analysts' consensus estimates of $2.46 by ($0.11), FiscalAI reports. The firm had revenue of $443.00 million during the quarter, compared to analyst estimates of $440.58 million. VeriSign had a net margin of 49.76% and a negative return on equity of 39.20%.

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 Price Performance

NASDAQ:VRSN traded down $2.66 during mid-day trading on Thursday, reaching $304.59. The company's stock had a trading volume of 1,313,900 shares, compared to its average volume of 821,872. The company's fifty day simple moving average is $292.48 and its two-hundred day simple moving average is $283.15. VeriSign has a twelve month low of $208.86 and a twelve month high of $312.48. The stock has a market cap of $27.50 billion, a P/E ratio of 33.04 and a beta of 0.69.

Insider Activity

In other news, EVP Thomas Indelicarto sold 500 shares of the company's stock in a transaction dated Thursday, October 8th. The shares were sold at an average price of $293.14, for a total transaction of $146,570.00. Following the completion of the transaction, the executive vice president owned 31,895 shares of the company's stock, valued at $9,349,700.30. This represents a 1.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO D. Bidzos sold 3,300 shares of the stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $306.30, for a total transaction of $1,010,790.00. Following the transaction, the chief executive officer owned 371,827 shares in the company, valued at approximately $113,890,610.10. The trade was a 0.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 43,100 shares of company stock valued at $12,574,391 in the last 90 days. 0.56% of the stock is owned by company insiders.

Analysts Set New Price Targets

VRSN has been the topic of a number of analyst reports. Wedbush raised their target price on shares of VeriSign from $341.00 to $351.00 and gave the stock an "outperform" rating in a research report on Monday. Weiss Ratings upgraded VeriSign from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, October 12th. JPMorgan Chase & Co. boosted their price target on VeriSign from $308.00 to $316.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Finally, Zacks Research lowered VeriSign from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 23rd. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $335.50.

Key Headlines Impacting VeriSign

Here are the key news stories impacting VeriSign this week:

• Positive Sentiment: Revenue and operating income increased. VeriSign reported third-quarter 2026 revenue of approximately $443 million, up 5.7% year over year, while operating income rose to $296 million from $284 million. The results extend the company’s revenue-growth streak and reflect continued demand for its .com and .net registry services. VeriSign Reports Third Quarter 2026 Results
• Positive Sentiment: Analyst sentiment remains favorable. Wedbush raised its price target to $351 from $341 and maintained an outperform rating. VeriSign has a consensus rating of “Moderate Buy” and an average price target of $335.50, implying potential upside based on the cited trading level. VeriSign Stock Price Expected to Rise, Wedbush Analyst Says
• Neutral Sentiment: Momentum remains strong, but valuation is demanding. VRSN was trading above both its 50-day and 200-day moving averages and near its 52-week high. That technical strength supports investor interest, although the stock’s price-to-earnings ratio above 33 leaves less room for disappointing results. Why VeriSign Is a Strong Momentum Stock
• Negative Sentiment: Third-quarter EPS fell short of expectations. Although sales rose, reports characterized the quarter as mixed because earnings per share missed analyst estimates. The EPS disappointment appears to be the primary catalyst for the stock’s decline, overshadowing the company’s revenue and operating-income growth. VeriSign Q3 2026 Earnings
• Negative Sentiment: CEO insider selling adds a minor cautionary signal. CEO D. James Bidzos sold 3,300 shares for about $1.01 million, reducing his direct ownership by 0.88%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, which limits its significance, but it follows a series of similar sales. VeriSign Insider Selling

VeriSign Company Profile

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.

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