Verisign Inc. Reports Higher Q3 Profit, Surpassing Expectations
Earnings Performance: Verisign Inc. reported third-quarter earnings of $212.8 million, or $2.27 per share, an increase from $201.3 million, or $2.07 per share, in the same period last year.
Analyst Expectations: The company's earnings surpassed analysts' expectations, who had predicted earnings of $2.24 per share, excluding special items.
Revenue Growth: Revenue for the quarter rose by 7.3% to $419.1 million, compared to $390.6 million in the previous year.
Earnings Summary: Key figures include earnings of $212.8 million, EPS of $2.27, and revenue of $419.1 million, all showing positive growth year-over-year.
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U.S. Stock Market Performance: U.S. stock indexes experienced significant gains on Friday, with the overall market climbing by 2.47%.
Individual Index Gains: The S&P 500 index rose by 2.18%, while the Dow Jones Industrial Average saw an increase of 1.97%.
- Unexpected Quarterly Loss: Molina Healthcare reported an unexpected quarterly loss, causing its stock to plummet 29% in a single day, marking the largest drop since 2012 and indicating significant challenges in profitability.
- Weak 2026 Outlook: The company issued a weak earnings outlook for 2026, which may undermine investor confidence and further pressure the stock price, reflecting market concerns about its future growth potential.
- Strong Overall Market Performance: Despite Molina Healthcare's stock decline, the Dow Jones Industrial Average surged nearly 2% on Friday, reaching a new all-time high, indicating a market preference for value stocks that may overshadow individual stock weaknesses.
- Small Caps Outperform: Small caps showed outstanding performance on Friday, with the Russell 2000 index soaring over 3%, suggesting increased investor confidence in smaller companies, contrasting sharply with Molina's performance.
- Centene Guidance Miss: Centene's full-year revenue guidance of $186.5 billion to $190.5 billion fell short of the $194.1 billion consensus, leading to a 5% drop in shares, indicating pressure in the health insurance sector.
- AI Infrastructure Stocks Surge: Companies linked to AI infrastructure, such as Lumen Technologies and Applied Digital, saw stock prices rise by at least 20%, reflecting a recovery in investor confidence after a week of selling, potentially signaling a shift in market sentiment.
- Viasat Earnings Beat: Viasat reported adjusted earnings of $0.79 per share for the third quarter, up from $0.11 a year earlier, with shares gaining about 10%, as the company anticipates double-digit operating cash flow growth in 2026, showcasing a strong business outlook.
- Roblox Optimistic Forecast: Roblox expects full-year bookings between $8.28 billion and $8.55 billion, exceeding the $7.87 billion consensus, resulting in a 12% stock increase, indicating robust performance in the online gaming market and future growth potential.
- Dividend Increase: VeriSign has declared a quarterly dividend of $0.81 per share, representing a 5.2% increase from the previous $0.77, indicating ongoing improvements in cash flow and profitability, which enhances investor confidence.
- Dividend Yield: The forward yield of this dividend stands at 1.34%, providing investors with a relatively stable return and reflecting the company's financial health in the current economic environment.
- Payment Timeline: The dividend is payable on February 27, with a record date of February 19 and an ex-dividend date also on February 19, ensuring shareholders receive timely returns, which further solidifies shareholder loyalty.
- Financial Performance: VeriSign reported a GAAP EPS of $2.23 for Q4 2025, missing expectations by $0.05, while its revenue of $425 million exceeded forecasts by $0.96 million, demonstrating resilience in revenue growth despite EPS shortfall.
- Robust Registration Growth: In 2025, VeriSign achieved 41.7 million new registrations, increasing the total domain name base to 173.5 million, reflecting a 2.6% year-over-year growth that underscores the company's strong performance and sustained market demand in the global domain space.
- Solid Financial Performance: The company reported revenues of $1.66 billion for 2025, a 6.4% increase year-over-year, with earnings per share (EPS) rising 10.1% to $8.81, demonstrating a continued commitment to profitability and shareholder returns, having returned $1.1 billion to shareholders in 2025.
- Optimistic Future Outlook: Management projects a domain base growth rate of 1.5% to 3.5% for 2026, with revenue guidance set between $1.715 billion and $1.735 billion, reflecting confidence in future market demand, while announcing a quarterly cash dividend of $0.81 per share, a 5.2% increase.
- Increased Capital Expenditures: Due to AI-driven demand and equipment replacement, capital expenditures for 2026 are expected to range from $55 million to $65 million, indicating a commitment to operational discipline and shareholder returns despite facing cost pressures.










