VeriSign (NASDAQ:VRSN – Get Free Report) issued its quarterly earnings results on Thursday. The information services provider reported $2.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $440.58 million.
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 Stock Down 0.9%
NASDAQ:VRSN traded down $2.66 during midday trading on Thursday, hitting $304.59. The stock had a trading volume of 1,313,900 shares, compared to its average volume of 821,872. The stock has a 50-day moving average of $292.48 and a 200 day moving average of $283.15. The company has a market capitalization of $27.50 billion, a price-to-earnings ratio of 33.04 and a beta of 0.69. VeriSign has a one year low of $208.86 and a one year high of $312.48.
Wall Street Analyst Weigh In
VRSN has been the topic of several research analyst reports. JPMorgan Chase & Co. upped their price objective on VeriSign from $308.00 to $316.00 and gave the company a “neutral” rating in a research report on Friday, July 24th. Zacks Research downgraded VeriSign from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 23rd. Wedbush boosted their target price on shares of VeriSign from $341.00 to $351.00 and gave the company an “outperform” rating in a research note on Monday. Finally, Weiss Ratings upgraded shares of VeriSign from a “buy (b-)” rating to a “buy (b)” rating in a report on Monday, October 12th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $335.50.
Read Our Latest Analysis on VRSN
Insiders Place Their Bets
In other news, CEO D. Bidzos sold 3,300 shares of the stock in a transaction on 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 of the company’s stock, valued at approximately $113,890,610.10. This represents a 0.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas C. Indelicarto sold 500 shares of the firm’s stock in a transaction on Thursday, October 8th. The shares were sold at an average price of $293.14, for a total value of $146,570.00. Following the transaction, the executive vice president owned 31,895 shares in the company, valued at approximately $9,349,700.30. This represents a 1.54% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 43,100 shares of company stock valued at $12,574,391. 0.56% of the stock is currently owned by corporate insiders.
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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