Verisign (VRSN)
NASDAQ:VRSN
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Verisign
(NASDAQ:VRSN)
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Rating:70Outperform
Price Target:
$277.00
▲(10.45% Upside)
Action:UpgradedDate:02/07/26
The score is driven primarily by strong profitability and consistently robust free cash flow, supported by constructive 2026 guidance and positive operating momentum from the latest earnings call. Offsetting factors are the weak technical setup (below key moving averages with bearish MACD) and balance-sheet risk from persistently negative equity, with valuation looking moderate-to-full at a 27.6 P/E.
Positive Factors
Market position (.com/.net authoritative registries)
Controlling the authoritative .com and .net registries creates durable structural advantages: entrenched ecosystem role, high switching costs for registrars and customers, and predictable, per‑domain recurring fees. This monopoly-like position underpins stable, recurring revenue and long-term pricing leverage.
Negative Factors
Negative shareholders' equity
Persistently negative equity constrains financial flexibility and complicates leverage assessment. In stress scenarios downside protection is limited, covenant and financing options may be less favorable, and balance‑sheet optics can restrict strategic choices despite stable debt levels and healthy cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Market position (.com/.net authoritative registries)
Controlling the authoritative .com and .net registries creates durable structural advantages: entrenched ecosystem role, high switching costs for registrars and customers, and predictable, per‑domain recurring fees. This monopoly-like position underpins stable, recurring revenue and long-term pricing leverage.
Read all positive factors
Verisign (VRSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.00B
Dividend Yield0.94%
Average Volume (3M)756.05K
Price to Earnings (P/E)27.2
Beta (1Y)0.47
Revenue Growth5.47%
EPS Growth-0.03%
CountryUS
Employees929
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)2.23
Shares Outstanding91,700,000
10 Day Avg. Volume792,079
30 Day Avg. Volume756,055
Financial Highlights & Ratios
PEG Ratio2.66
Price to Book (P/B)-10.42
Price to Sales (P/S)13.55
P/FCF Ratio21.01
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue14.75
Enterprise Value/Gross Profit16.73
Enterprise Value/Ebitda20.85
Forecast
1Y Price Target
$276.00Price Target Upside10.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)9.53
Revenue Forecast (FY)$1.73B
Verisign Business Overview & Revenue Model
Company Description
VeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. It enables the security, stability, and resiliency o...
How the Company Makes Money
VeriSign primarily makes money by operating internet domain name registries and charging fees tied to the lifecycle of domain names under the top-level domains it manages. The company’s largest revenue stream comes from registry services for .com ...
Verisign Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyVerisign Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed solid operating and financial momentum: above-trend revenue (+6.4%) and EPS (+10.1%) growth, strong new registrations and domain base expansion, robust cash generation and meaningful shareholder returns. Management provided constructive 2026 guidance while highlighting opportunities from AI-driven demand. Headwinds include a one-time Q4 impairment that raised operating expenses, modest sequential EPS decline, higher foreign taxes, lower expected interest income, and elevated capex driven by equipment replacement and AI-induced industry constraints. Overall, positives (growth, cash, domain metrics, return of capital) materially outweigh the transitory and manageable negatives.Positive Updates
Sustained Service Reliability
Maintained 100% service delivery for .com and NetDNS for the 28th consecutive year, supporting increased utilization of VeriSign's infrastructure.
Negative Updates
Quarterly Operating Expense Increase Due to Impairment
Q4 2025 operating expenses rose to $140,000,000 from $135,000,000 last quarter and $132,000,000 in 2024, driven largely by an impairment charge on real estate intended for sale.
Read all updates
Q4-2025 Updates
Positive
Negative
Sustained Service Reliability
Maintained 100% service delivery for .com and NetDNS for the 28th consecutive year, supporting increased utilization of VeriSign's infrastructure.
Read all positive updates
Company Guidance
VeriSign guided 2026 domain‑name‑based growth of 1.5%–3.5%, revenue of $1,715,000,000–$1,735,000,000, and operating income of $1,160,000,000–$1,180,000,000 (the midpoint implying an operating margin more in line with long‑term trends), with interest expense and non‑operating income, net, expected to be an expense of $57,000,000–$67,000,000, capital expenditures of $55,000,000–$65,000,000 (higher than typical due to end‑of‑life equipment replacement, capacity expansion and HQ projects amid AI‑driven cost pressures), and a GAAP effective tax rate of 22%–25%; management also noted the first possible .com price increase could be executable in October 2026 with notice in April. For context, FY2025 results were revenue $1,660,000,000, operating income $1,120,000,000, EPS $8.81, full‑year free cash flow $1,070,000,000, cash and equivalents $581,000,000, $1,080,000,000 available under the buyback program, and a newly declared quarterly dividend of $0.81 per share (up 5.2%).Verisign Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
38
Negative
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.66B | 1.56B | 1.49B | 1.42B | 1.33B |
| Gross Profit | 1.46B | 1.37B | 1.30B | 1.22B | 1.14B |
| EBITDA | 1.17B | 1.13B | 1.10B | 1.00B | 913.41M |
| Net Income | 955.50M | 785.70M | 817.60M | 673.80M | 784.80M |
Balance Sheet | |||||
| Total Assets | 1.33B | 1.41B | 1.75B | 1.73B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 580.50M | 599.90M | 926.40M | 980.40M | 1.21B |
| Total Debt | 1.80B | 1.80B | 1.80B | 1.79B | 1.79B |
| Total Liabilities | 3.48B | 3.36B | 3.33B | 3.30B | 3.24B |
| Stockholders Equity | -2.15B | -1.96B | -1.58B | -1.56B | -1.26B |
Cash Flow | |||||
| Free Cash Flow | 1.07B | 874.50M | 808.00M | 803.70M | 754.12M |
| Operating Cash Flow | 1.09B | 902.60M | 853.80M | 831.10M | 807.15M |
| Investing Cash Flow | 109.10M | 286.30M | -97.40M | 355.70M | -269.25M |
| Financing Cash Flow | -1.10B | -1.22B | -889.80M | -1.04B | -719.13M |
Verisign Technical Analysis
Positive
250.80
Price Trends
236.24
Positive
241.28
Positive
257.79
Negative
Market Momentum
4.01
Negative
67.52
Neutral
77.64
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 250.8 is above the 20-day moving average (MA) of 239.52, above the 50-day MA of 236.24, and below the 200-day MA of 257.79, indicating a neutral trend. The MACD of 4.01 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.64 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $59.96B | 31.84 | 123.64% | ― | 14.78% | 22.52% | |
70 Outperform | $23.00B | 27.19 | -40.40% | 0.94% | 5.47% | -0.03% | |
69 Neutral | $15.33B | 18.84 | 36.62% | ― | 6.31% | 25.27% | |
66 Neutral | $22.75B | ― | -3.48% | ― | 23.24% | -8.83% | |
66 Neutral | $10.90B | 19.20 | 384.19% | ― | 8.79% | -55.15% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
41 Neutral | $6.92B | -84.00 | -8.01% | ― | 23.38% | -30.16% |
* Technology Sector Average
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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.