VeriSign (NASDAQ:VRSN) Releases Earnings Results, Beats Expectations By $0.04 EPS
by Amy Steele · The Cerbat GemVeriSign (NASDAQ:VRSN – Get Free Report) announced its earnings results on Thursday. The information services provider reported $2.34 EPS for the quarter, beating analysts’ consensus estimates of $2.30 by $0.04, FiscalAI reports. VeriSign had a net margin of 49.84% and a negative return on equity of 40.40%. The firm had revenue of $428.90 million for the quarter, compared to analysts’ expectations of $424.50 million. During the same quarter in the previous year, the business posted $2.10 EPS. The company’s quarterly revenue was up 6.6% on a year-over-year basis.
Here are the key takeaways from VeriSign’s conference call:
- Record domain base of 176.1 million names with 11.5 million new registrations (the largest since H1 2021) and a stronger renewal rate of 76.3%, and management raised full‑year domain base growth guidance to 3.1%–4.3%.
- Q1 revenue was $429 million (+6.6% YoY) and diluted EPS was $2.34 (+11.4% YoY); full‑year revenue is guided to $1.73B–$1.745B with operating income guided to $1.17B–$1.185B.
- Board approved a quarterly dividend of $0.81 per share, the company returned over 100% of free cash flow in the last 12 months totaling $1.13 billion, and $863 million remains available under the share repurchase program.
- VeriSign announced a .com wholesale price increase of $0.71 to $10.97 effective November 1, 2026, which could boost wholesale revenue but actual retail impact depends on registrar pricing and customer elasticity.
- Management emphasized its high‑assurance infrastructure (100% availability approaching 29 years, ~600 billion transactions/day), plans to roll out enhanced security services, and is evaluating participation in the upcoming ICANN new gTLD round (potential launches not expected until ~2028).
VeriSign Price Performance
Shares of VeriSign stock opened at $276.95 on Friday. The stock has a market cap of $25.24 billion, a price-to-earnings ratio of 31.44 and a beta of 0.70. The firm’s 50-day moving average is $245.63 and its 200 day moving average is $246.93. VeriSign has a 1 year low of $208.86 and a 1 year high of $310.60.
VeriSign Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Tuesday, May 19th will be paid a $0.81 dividend. The ex-dividend date is Tuesday, May 19th. This represents a $3.24 dividend on an annualized basis and a yield of 1.2%. VeriSign’s payout ratio is presently 36.78%.
Wall Street Analyst Weigh In
A number of analysts have recently commented on the stock. Zacks Research upgraded shares of VeriSign from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Weiss Ratings upgraded shares of VeriSign from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, March 27th. Robert W. Baird boosted their target price on shares of VeriSign from $305.00 to $355.00 and gave the company an “outperform” rating in a report on Friday. Citigroup lifted their price target on VeriSign from $280.00 to $295.00 and gave the stock a “buy” rating in a research report on Thursday, April 2nd. Finally, JPMorgan Chase & Co. upped their price target on shares of VeriSign from $270.00 to $271.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 6th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, VeriSign presently has a consensus rating of “Moderate Buy” and an average target price of $307.00.
Check Out Our Latest Stock Analysis on VeriSign
More VeriSign News
Here are the key news stories impacting VeriSign this week:
- Positive Sentiment: Q1 results: EPS $2.34 beat consensus and revenue was roughly flat to modestly up year‑over‑year, supporting stronger margins and operating income growth — a primary catalyst for the stock rally. Business Wire: Verisign Reports First Quarter 2026 Results
- Positive Sentiment: Dividend declared: VeriSign announced a quarterly dividend of $0.81 per share (ex‑dividend and record dates set), reinforcing shareholder returns (annualized yield ~1.2%).
- Positive Sentiment: Registry fundamentals: Domain Name Industry Brief (DNIB) data shows 392.5 million domain registrations at end of Q1, up sequentially — a supportive data point for long‑term registry revenue growth. Business Wire: DNIB Q1 Domain Registrations
- Neutral Sentiment: FY2026 outlook: Management updated fiscal guidance with revenue pegged at roughly $1.7B (close to consensus), so guidance was more confirmatory than bullish — limits upside surprise potential. Business Wire: Verisign Results & Guidance
- Neutral Sentiment: Analyst views: Recent price targets cluster near the current trading range (median ~$283), indicating limited consensus upside from here.
- Negative Sentiment: Insider and institutional activity: Public filings and third‑party trackers show substantial insider sales by several executives and notable institutional position reductions by some large managers — a potential headwind for sentiment. QuiverQuant: VRSN Stock Rises on Q1 2026 Earnings (includes insider activity)
- Negative Sentiment: Mixed financial details: Some third‑party tallies showed operating cash and cash balances declined year‑over‑year and noted a narrow revenue shortfall versus certain consensus figures — facts that could cap multiple expansion. QuiverQuant: VRSN Q1 Financials
Insider Transactions at VeriSign
In other VeriSign news, EVP Thomas C. Indelicarto sold 498 shares of the business’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $249.08, for a total value of $124,041.84. Following the completion of the transaction, the executive vice president owned 30,115 shares of the company’s stock, valued at approximately $7,501,044.20. The trade was a 1.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last quarter, insiders have sold 2,490 shares of company stock valued at $626,690. Insiders own 0.56% of the company’s stock.
Hedge Funds Weigh In On VeriSign
A number of hedge funds have recently bought and sold shares of the business. Advisors Asset Management Inc. raised its position in VeriSign by 25.3% in the 1st quarter. Advisors Asset Management Inc. now owns 198 shares of the information services provider’s stock worth $50,000 after buying an additional 40 shares during the last quarter. WealthCollab LLC raised its position in VeriSign by 19.1% in the 3rd quarter. WealthCollab LLC now owns 312 shares of the information services provider’s stock worth $87,000 after buying an additional 50 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in VeriSign by 5.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,205 shares of the information services provider’s stock worth $293,000 after buying an additional 58 shares during the last quarter. Parkside Financial Bank & Trust raised its position in VeriSign by 23.9% in the 4th quarter. Parkside Financial Bank & Trust now owns 311 shares of the information services provider’s stock worth $76,000 after buying an additional 60 shares during the last quarter. Finally, Kestra Private Wealth Services LLC raised its position in VeriSign by 5.5% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 1,242 shares of the information services provider’s stock worth $347,000 after buying an additional 65 shares during the last quarter. Hedge funds and other institutional investors own 92.90% of the company’s stock.
VeriSign Company Profile
VeriSign, Inc (NASDAQ: VRSN) is an internet infrastructure company that operates critical components of the global Domain Name System (DNS) and provides cybersecurity-related services. The company is best known as the authoritative registry operator for the .com and .net top-level domains, maintaining the central databases and zone files that enable domain name resolution for millions of websites. VeriSign’s registry role is performed under contractual agreements with Internet Corporation for Assigned Names and Numbers (ICANN) and involves high-availability, highly secure operations to support continuous internet connectivity.
In addition to its registry business, VeriSign offers a suite of services designed to protect and accelerate DNS and internet traffic for enterprises and service providers.