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Verisign
(NASDAQ:VRSN)
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Rating:75Outperform
Price Target:
$315.00
▲(14.94% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by strong financial quality (exceptional profitability and free-cash-flow generation) and a very upbeat earnings update with raised guidance and record domain registration momentum. Offsetting factors are balance-sheet weakness (negative equity and leverage optics), a premium valuation (P/E ~30), and only moderate/neutral technical momentum.
Positive Factors
Registry Scale and Infrastructure Moat
VeriSign's essential registry role, massive installed base, and unmatched uptime support durable competitive advantages. The scale and reliability of its infrastructure strengthen customer dependence and underpin recurring, subscription-like registry revenue.
Negative Factors
Negative Equity and Elevated Leverage
Negative equity reduces the balance-sheet cushion available during adverse conditions and makes leverage optics unfavorable despite strong earnings. Debt coverage is only moderate, limiting financial flexibility if cash generation weakens or financing costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Registry Scale and Infrastructure Moat
VeriSign's essential registry role, massive installed base, and unmatched uptime support durable competitive advantages. The scale and reliability of its infrastructure strengthen customer dependence and underpin recurring, subscription-like registry revenue.
Read all positive factors
Verisign Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where Verisign earns its registry and DNS service fees across regions, highlighting which markets drive growth and where revenue is concentrated. Geographic splits reveal exposure to currency swings, local regulatory changes, and differing internet adoption rates that can affect future sales and pricing power.
Shows where Verisign earns its registry and DNS service fees across regions, highlighting which markets drive growth and where revenue is concentrated. Geographic splits reveal exposure to currency swings, local regulatory changes, and differing internet adoption rates that can affect future sales and pricing power.
Data provided by:
The Fly
The FlyVerisign (VRSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.45B
Dividend Yield1.14%
Average Volume (3M)842.15K
Price to Earnings (P/E)30.5
Beta (1Y)0.51
Revenue Growth6.86%
EPS Growth10.11%
CountryUS
Employees927
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)9.23
Shares Outstanding90,300,000
10 Day Avg. Volume890,571
30 Day Avg. Volume842,147
Financial Highlights & Ratios
PEG Ratio2.69
Price to Book (P/B)-10.42
Price to Sales (P/S)13.55
P/FCF Ratio21.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$320.00Price Target Upside16.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)9.73
Revenue Forecast (FY)$1.75B
Verisign Business Overview & Revenue Model
Company Description
VeriSign, Inc., along with its affiliates, provides fundamental internet infrastructure and domain name registration services, which enable global web navigation across numerous recognized online addresses. The company plays a crucial role in upho...
How the Company Makes Money
VeriSign makes money primarily by operating domain name registries and charging fees tied to domain registrations and renewals. Its core revenue stream is registry services for .com and .net, where it performs back-end functions such as maintainin...
Verisign Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record operational and financial metrics — record quarterly new registrations, strong domain base growth, revenue up 6% YoY, EPS up 7.7% YoY, and materially higher free cash flow with aggressive shareholder returns. Management also announced the delegation of .web and signaled near-term product rollouts leveraging VeriSign's infrastructure. Noted headwinds include a small decline in renewal rate, rising operating and infrastructure costs, and near-term liquidity impacts from debt activity; however, these appear manageable relative to the significant positive trends and strengthened guidance. Overall the positives (robust topline and cash generation, product progress, shareholder returns, and raised domain growth guidance) outweigh the manageable negatives.Positive Updates
Record Domain Registrations and Base Growth
Total .com and .net base reached 179.1 million names; a sequential increase of 3.05 million. Q2 saw a record 12.7 million new registrations (largest quarter in company history), up from 11.5M last quarter and 10.4M in Q2 last year (≈21% YoY for Q2). Management raised 2026 domain base growth guidance to 5.2%–6.0%.
Negative Updates
Slight Renewal Rate Compression and Mix Risk
Q2 renewal rate is expected to be 75.2%, down from 75.5% a year ago (a ~0.3 percentage point decline). Management noted the strong influx of new registrations increases the share of first-time renewals, which can create downward pressure on aggregate renewal rates going forward.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Domain Registrations and Base Growth
Total .com and .net base reached 179.1 million names; a sequential increase of 3.05 million. Q2 saw a record 12.7 million new registrations (largest quarter in company history), up from 11.5M last quarter and 10.4M in Q2 last year (≈21% YoY for Q2). Management raised 2026 domain base growth guidance to 5.2%–6.0%.
Read all positive updates
Company Guidance
VeriSign narrowed and raised its 2026 guidance, calling for domain name base growth of 5.2%–6.0% and full‑year revenue of $1.745–$1.755 billion, operating income of $1.185–$1.195 billion, interest expense and non‑operating net of $59–$65 million, capital expenditures of $55–$65 million, and a GAAP effective tax rate of 22%–25%; the company said it does not expect meaningful .web revenue or expenses in 2026. For context, Q2 results included revenue of $435 million (+6% Y/Y), operating income $296 million (+5.6% Y/Y), net income $217 million, diluted EPS $2.38, operating cash flow $232 million and free cash flow $213 million; the combined .com/.net base was 179.1 million names (up 3.05 million QoQ) with a record 12.7 million new registrations in Q2 and a renewal rate of ~75.2%; cash and equivalents were $1.034 billion, the Board increased buyback capacity by $884 million to $1.5 billion, and a $0.81/share quarterly dividend was approved.Verisign Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
28
Negative
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.66B | 1.56B | 1.49B | 1.42B | 1.33B |
| Gross Profit | 1.51B | 1.46B | 1.37B | 1.30B | 1.22B | 1.14B |
| EBITDA | 1.20B | 1.17B | 1.13B | 1.10B | 1.00B | 913.41M |
| Net Income | 850.00M | 955.50M | 785.70M | 817.60M | 673.80M | 784.80M |
Balance Sheet | ||||||
| Total Assets | 1.80B | 1.33B | 1.41B | 1.75B | 1.73B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 1.03B | 580.50M | 599.90M | 926.40M | 980.40M | 1.21B |
| Total Debt | 2.34B | 1.80B | 1.80B | 1.80B | 1.79B | 1.79B |
| Total Liabilities | 4.06B | 3.48B | 3.36B | 3.33B | 3.30B | 3.24B |
| Stockholders Equity | -2.25B | -2.15B | -1.96B | -1.58B | -1.56B | -1.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.07B | 874.50M | 808.00M | 803.70M | 754.12M |
| Operating Cash Flow | 1.10B | 1.09B | 902.60M | 853.80M | 831.10M | 807.15M |
| Investing Cash Flow | 60.50M | 109.10M | 286.30M | -97.40M | 355.70M | -269.25M |
| Financing Cash Flow | -639.40M | -1.10B | -1.22B | -889.80M | -1.04B | -719.13M |
Verisign Technical Analysis
Positive
274.05
Price Trends
272.62
Positive
276.47
Positive
257.95
Positive
Market Momentum
0.59
Positive
51.42
Neutral
23.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSN, the sentiment is Positive. The current price of 274.05 is below the 20-day moving average (MA) of 285.22, above the 50-day MA of 272.62, and above the 200-day MA of 257.95, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 23.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRSN.
Verisign Risk Analysis
Verisign disclosed 25 risk factors in its most recent earnings report. Verisign reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verisign Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $112.63B | 53.67 | 187.95% | ― | 18.77% | 12.93% | |
75 Outperform | $25.45B | 30.53 | -39.21% | 0.94% | 6.86% | 10.11% | |
72 Outperform | $13.33B | 13.19 | 36.43% | ― | 4.64% | 25.51% | |
71 Outperform | $29.39B | -378.64 | -3.71% | ― | 24.61% | -91.58% | |
67 Neutral | $12.29B | 14.28 | 660.95% | ― | 7.50% | 18.20% | |
65 Neutral | $10.57B | -69.04 | -2.30% | ― | 23.96% | 78.71% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
VRSN
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Verisign Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Verisign reports strong Q2 2026 growth and expansion
Positive
Jul 23, 2026
On July 23, 2026, Verisign reported second-quarter 2026 revenue of $435 million, up 6% year on year, with operating income rising to $296 million and net income to $217 million, or diluted EPS of $2.38. The company ended the quarter with $1.03 bil...
Business Operations and StrategyPrivate Placements and Financing
Verisign Issues New Senior Notes to Refinance Debt
Positive
Jun 26, 2026
On June 18, 2026, Verisign entered into an underwriting agreement with J.P. Morgan Securities, BofA Securities and U.S. Bancorp Investments for a registered offering of $550 million in 5.100% Senior Notes due 2031, with closing expected on June 26...
Business Operations and StrategyShareholder Meetings
Verisign Stockholders Approve Amended Long-Term Incentive Plan
Positive
May 21, 2026
At its May 21, 2026 annual meeting, VeriSign stockholders approved an amendment and restatement of the company’s 2006 Equity Incentive Plan, extending its termination date to May 21, 2036 while making technical and administrative updates wit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.