Want to see VRSN full AI Analyst Report?
Top Page
Verisign
(NASDAQ:VRSN)
Select Model
Select Model
Rating:73Outperform
Price Target:
$340.00
▲(15.74% Upside)
Action:Reiterated
Date:10/23/26
VRSN scores well due to strong profitability and exceptional free-cash-flow generation, reinforced by constructive price momentum and a generally positive earnings outlook with raised domain-growth guidance. The score is held back primarily by the negative-equity capital structure and a premium valuation (P/E ~33), with some near-term operational pressure from renewal mix and higher expenses.
Positive Factors
Critical registry infrastructure
VeriSign operates infrastructure that is deeply embedded in the global DNS and supports a very large installed domain base. Its long record of uninterrupted availability reinforces customer trust, operational credibility, and a durable competitive position in a mission-critical service.
Negative Factors
Negative equity and leverage
The negative-equity structure and sizable debt reduce financial flexibility despite strong earnings and cash generation. A smaller asset base can amplify the effect of operational or financial stress, limiting the company’s margin for error in capital allocation and downturn scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Critical registry infrastructure
VeriSign operates infrastructure that is deeply embedded in the global DNS and supports a very large installed domain base. Its long record of uninterrupted availability reinforces customer trust, operational credibility, and a durable competitive position in a mission-critical service.
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
$27.44B
Dividend Yield1.05%
Average Volume (3M)934.42K
Price to Earnings (P/E)32.9
Beta (1Y)0.52
Revenue Growth6.46%
EPS Growth8.32%
CountryUS
Employees927
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)9.31
Shares Outstanding89,700,000
10 Day Avg. Volume1,002,500
30 Day Avg. Volume934,422
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 Cap0.98
Enterprise Value/Revenue15.48
Enterprise Value/Gross Profit17.48
Enterprise Value/Ebitda22.12
Forecast
1Y Price Target
$352.00Price Target Upside19.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)9.8
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 primarily makes money by charging fees tied to domain name registrations and renewals for the top-level domains it operates, with .com representing the largest contributor. Under its registry agreements, VeriSign provides the back-end reg...
Verisign Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by record new registrations, 6.1% year-over-year domain base growth, 5.7% revenue growth, increased domain growth guidance, strong core DNS reliability, and progress toward launching .web and VeriSign Informed. The main challenges were lower renewal rates caused by mix, higher operating expenses from a $7.5 million asset-related loss, lower year-over-year cash flow, sequentially lower net income and EPS, and expected seasonal and mix-related renewal pressure in the fourth quarter.Positive Updates
Domain Name Base Reached 183 Million
The combined .com and .net domain name base totaled 183 million names at the end of the third quarter, up 6.1% year over year and 3.4 million from the prior quarter.
Negative Updates
Overall Renewal Rate Declined
The expected third-quarter renewal rate was 74.3%, down from 75.4% a year ago. Management attributed the year-over-year decrease to a higher proportion of first-time renewing names following last year's strength in new registrations.
Read all updates
Q3-2026 Updates
Positive
Negative
Domain Name Base Reached 183 Million
The combined .com and .net domain name base totaled 183 million names at the end of the third quarter, up 6.1% year over year and 3.4 million from the prior quarter.
Read all positive updates
Company Guidance
For 2026, VeriSign increased and narrowed guidance for domain name base growth to be between 6.5% and 7%, with revenue now expected to be between $1.755 billion and $1.760 billion, operating income between $1.188 billion and $1.192 billion, interest expense and nonoperating income net still expected to be an expense between $59 and $65 million, capital expenditures still expected to be between $55 and $65 million, and the GAAP effective tax rate still expected to be between 22% and 25%; the company expects about 50% of the .com price increase to flow through in revenue in 2027 and most of the rest in 2028, plans to begin the .web 30 day sunrise period in mid December, begin a limited registration period in mid January that could run into early April 27, and open .web for general availability at that point, while VeriSign Informed pricing should be completed by year end with production service delivery expected during the first half of 2027.Verisign Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
38
Negative
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.73B | 1.66B | 1.56B | 1.49B | 1.42B | 1.33B |
| Gross Profit | 1.53B | 1.46B | 1.37B | 1.30B | 1.22B | 1.14B |
| EBITDA | 1.21B | 1.17B | 1.13B | 1.10B | 1.00B | 913.41M |
| Net Income | 849.80M | 825.70M | 785.70M | 817.60M | 673.80M | 784.80M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.33B | 1.41B | 1.75B | 1.73B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 476.10M | 580.50M | 599.90M | 926.40M | 980.40M | 1.21B |
| Total Debt | 1.79B | 1.80B | 1.80B | 1.80B | 1.79B | 1.79B |
| Total Liabilities | 3.56B | 3.48B | 3.36B | 3.33B | 3.30B | 3.24B |
| Stockholders Equity | -2.28B | -2.15B | -1.96B | -1.58B | -1.56B | -1.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 1.07B | 874.50M | 808.00M | 803.70M | 754.12M |
| Operating Cash Flow | 1.06B | 1.09B | 902.60M | 853.80M | 831.10M | 807.15M |
| Investing Cash Flow | 75.60M | 109.10M | 286.30M | -97.40M | 355.70M | -269.25M |
| Financing Cash Flow | -1.17B | -1.10B | -1.22B | -889.80M | -1.04B | -719.13M |
Verisign Technical Analysis
Positive
293.75
Price Trends
295.37
Positive
284.11
Positive
270.38
Positive
Market Momentum
3.63
Negative
57.15
Neutral
72.93
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 293.75 is below the 20-day moving average (MA) of 301.63, below the 50-day MA of 295.37, and above the 200-day MA of 270.38, indicating a bullish trend. The MACD of 3.63 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.41B | 14.39 | 1200.87% | ― | 7.50% | 18.20% | |
73 Outperform | $27.44B | 32.86 | -38.17% | 1.05% | 6.46% | 8.32% | |
72 Outperform | $20.58B | 28.66 | 19.19% | ― | 10.64% | 6.01% | |
66 Neutral | $110.49B | -531.97 | -13.86% | ― | 33.53% | -72.17% | |
65 Neutral | $421.99B | 21.54 | 42.58% | 1.43% | 21.62% | 45.95% | |
64 Neutral | $14.28B | 34.99 | 8.49% | ― | 5.87% | -0.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
VRSN
Verisign
307.21
70.36
29.71%
AKAM
Akamai
92.72
17.62
23.46%
FFIV
F5, Inc.
338.34
85.29
33.70%
ORCL
Oracle
130.67
-128.47
-49.58%
GDDY
GoDaddy
117.24
-15.89
-11.94%
NET
Cloudflare
280.70
27.40
10.82%
Verisign Corporate Events
Business Operations and StrategyProduct-Related Announcements
Verisign Announces Upcoming Price Increase for .net Domains
Neutral
Aug 27, 2026
On August 27, 2026, VeriSign, Inc. announced that it would raise the registry-level wholesale price for new and renewal .net domain names from $10.91 to $12.00, with the change taking effect on March 1, 2027. The increase, made under its agreement...
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...
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.