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VeriSign, Inc.
NASDAQ: VRSN Technology IT 🔎 Screen
S&P 500
🏹 Trader: 🎯 Near 52W High | BRS 66 Forming View all →
$27.2B
Market Cap
27.6
P/E
1.74
PEG
46.5%
ROCE
-40.2%
ROE
-0.84
D/E
67.7%
OPM
-3.4%
% from 52W High
62
α RS
🔍 VRSN is showing a high-conviction setup because it matches 10 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 62. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 10/39 · Technology in Leading quadrant · RS Rating 62
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🌏 Global Investor Returns
Currency-adjusted total returns for VRSN including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

VeriSign, Inc., together with its subsidiaries, provides internet infrastructure and domain name registry services that enables internet navigation for various recognized domain names worldwide. The company provides root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It operates directory for .name and .cc; and back-end systems for .edu, domain names. The company was incorporated in 1995 and is headquartered in Reston, Virginia.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding VRSN
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 8.02M $2.0B 0.76% Mar 2026
Jim Simons Renaissance Technologies LLC 2.82M $699.9M 1.09% Mar 2026
Warren Buffett Berkshire Hathaway Inc 972.9K $241.6M 0.09% Mar 2026
Steve Cohen Point72 Asset Management 505.7K $125.6M 0.16% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$435M
+6% YoY
Operating Income
$296M
+5.6% YoY
Operating Margin
68.0%
-0.5pp YoY
Net Income
$217M
+4.8% YoY
What Went Right
  • Record Q2 new registrations of 12.7M, up 21% YoY, drove .com/.net base to 179.1M names.
  • Raised FY2026 domain base growth guidance to 5.2%-6.0% and delivered revenue growth of 6% to $435M.
  • .web was delegated to VeriSign, adding a new TLD with full wholesale pricing flexibility and no meaningful 2026 financial impact.
What to Watch
  • Q2 2026 renewal rate expected at 75.2%, down from 75.5% a year ago; management sees possible further tick-down as first-time renewals mix grows.
  • Server/memory chip cost inflation is pressuring CapEx; management pulled forward spend to avoid expected price increases.
  • November .com price increase takes roughly two years to fully flow through revenue, with only ~50% recognized in 2027.
Management Guidance
  • FY2026 revenue expected between $1.745B and $1.755B
  • FY2026 operating income expected between $1.185B and $1.195B
  • FY2026 domain name base growth raised to 5.2%-6.0%
  • FY2026 interest expense and non-operating net expected expense between $59M and $65M
  • FY2026 capital expenditures still expected between $55M and $65M
  • FY2026 GAAP effective tax rate still expected between 22% and 25%
Investor Lens
The thesis is stronger after this call: record new registrations, an upwardly revised 2026 outlook, and .web now delegated add a credible growth option while capital returns remain heavy. The main offsets are a slowly normalizing renewal rate and rising technology cost inflation, both of which management is actively addressing. The improved domain growth trend, if sustained, supports durable revenue and cash flow growth.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q2 registrations, revenue +6% to $435M, FY guide raised
Revenue
Revenue was $435M in Q2 2026, up 6% YoY. Growth was driven by record new registrations of 12.7M for .com/.net, versus 10.4M in Q2 2025, and a domain name base of 179.1M. The U.S. and EMEA were the strongest regions during the quarter.
Profitability
Net income was $217M, up 4.8% YoY, while diluted EPS rose 7.7% to $2.38. Operating income came in at $296M, up 5.6% YoY, reflecting solid operating leverage despite higher OpEx of $138M versus $121M a year ago.
Margins
Operating margin was approximately 68.0%, down about 0.5pp YoY as operating expenses grew faster than revenue. OpEx increased 14% YoY, offsetting some of the revenue growth, but overall profitability remained strong.
Balance Sheet
Ended Q2 with cash, equivalents and marketable securities of $1.03B, including $546M of net proceeds from new 5.1% notes due 2031. Q2 operating cash flow was $232M and free cash flow was $213M. The company redeemed $550M of 4.75% notes due 2027 on July 20, 2026, and maintained CapEx guidance of $55M-$65M.
Key Risks
Renewal rates may tick down as the mix of first-time renewing names grows from recent strong registration volumes. Management flagged elevated server/memory chip costs, which are pressuring CapEx and prompted some pull-forward of spending. .web and new product launches are not expected to contribute meaningful revenue in 2026, and the November .com price increase will take about two years to fully reflect in revenue.
Outlook
For full-year 2026, revenue is guided to $1.745B-$1.755B and operating income to $1.185B-$1.195B. Domain name base growth guidance was raised to 5.2%-6.0%, with .web general availability expected late 2026 or early 2027.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Q2 2026 saw record domain registrations, 6% revenue growth, and robust cash flow, with over $1.17 billion returned to shareholders. Guidance for domain base growth and revenue was raised, while .web is set for launch with no material 2026 impact.
Q1 2026 Q1 2026 2026-04-23
Q1 2026 saw record domain base growth, 6.6% revenue increase, and 11.4% EPS growth year-over-year. Guidance for 2026 was raised, a .com price hike was announced, and over 100% of free cash flow was returned to investors.
Q4 2025 Q4 2025 2026-02-05
Revenue grew 6.4% year-over-year to $1.66 billion in 2025, with domain name base expanding by 2.6% and EPS up 10.1%. Guidance for 2026 projects continued growth, with new services under evaluation and strong shareholder returns through buybacks and dividends.
Q3 2025 Q3 2025 2025-10-22
Q3 2025 saw strong domain name base growth, 7.3% revenue increase, and higher renewal rates. Guidance for 2025 was raised, with robust cash flow and continued shareholder returns. AI adoption and improved marketing programs are driving demand and operational efficiency.
Q2 2025 Q2 2025 2025-07-23
Q2 2025 saw revenue rise 5.9% year-over-year to $410 million, with net income and EPS also increasing. Domain name base and renewal rates improved, especially in Asia-Pacific, and guidance for 2025 was raised. Shareholder returns were boosted via dividends and expanded buybacks.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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