10-Q · April 23, 2026
Verisign reported Q1 2026 revenue of $428.9 million (up 7% YoY) and GAAP diluted EPS of $2.34, modestly ahead of consensus. Operating income was $293.6 million (up 8% YoY) and the domain name base grew to 176.1 million…
Earnings analysis · 10-Q
VRSN earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
VeriSign delivered $443.0 million of revenue, up approximately 1.8% sequentially and 5.7% year over year, but diluted EPS of $2.35 missed the $2.42 consensus estimate. The domain base grew 6.1% year over year, while…
Read full summary
VeriSign delivered $443.0 million of revenue, up approximately 1.8% sequentially and 5.7% year over year, but diluted EPS of $2.35 missed the $2.42 consensus estimate. The domain base grew 6.1% year over year, while operating cash flow was $268 million and was pressured by a $7.5 million asset-related charge that reduced EPS by approximately $0.06. The filing provides no quantitative forward guidance; key risks include AI-enhanced cyberattacks, quantum threats to DNSSEC, regulatory exposure, and dependence on the .com and .net registry agreements.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.35
What stood out
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Revenue continued to grow
Revenue was $443.0 million, up from $435 million in Q2 2026 and $419 million in Q3 2025, representing approximately 1.8% sequential growth and 5.7% year-over-year growth.
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Domain base expanded 6.1%
The domain-name base increased 6.1% year over year, supporting continued registration and renewal activity.
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Cash generation weakened
Operating cash flow was $268 million, although this was lower than the $303 million of free cash flow reported in Q3 2025 and reflects weaker cash conversion than the prior-year period.
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EPS missed consensus
Diluted EPS was $2.35, below the $2.42 consensus estimate; a $7.5 million asset-related charge reduced EPS by approximately $0.06.
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Share repurchases accelerated
The company repurchased 670 thousand shares during the quarter at an aggregate average-price profile ranging from $268.43 in July to $292.78 in September.
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Large buyback authorization
The Board authorized total share repurchases of up to $1.50 billion, with $1.3611 billion remaining available at September 30, 2026.
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Controls remained effective
Management concluded that disclosure controls were effective as of September 30, 2026, and reported no material change in internal control during the quarter.
What to watch
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AI-enhanced cybersecurity threats
The filing highlights that AI-based tools are making cyberattacks more sophisticated and faster to launch, while successful attacks could cause service interruptions, liability, and higher costs. Verisign also states that it does not maintain specific reserves for security breaches or DDoS attacks.
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Quantum risk to DNSSEC
The filing identifies quantum computing as an emerging threat to public-key cryptography and notes that DNSSEC still uses pre-quantum algorithms. A cryptographically relevant quantum computer could expose encrypted data and systems to compromise.
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Registry renewal concentration
Verisign remains dependent on its .com and .net registry rights, whose current agreements expire on November 30, 2030 and June 30, 2029, respectively. Loss, modification, or unfavorable renewal terms could materially affect revenue.
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Pricing and regulatory challenge
The company may increase .com annual fees by up to 7% in each of the final four years of each six-year period, but pricing provisions face potential challenges from regulators, registrars, registrants, and other stakeholders.
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China regulatory exposure
The filing states that China’s licensing and registration regulations are affecting demand for domain-name registrations in China; failure to obtain or renew required licenses could suspend some or all registry services there.
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Antitrust and litigation exposure
The company is currently named as a defendant in a putative antitrust class action and warns that litigation, investigations, and claims could require significant expense and management attention regardless of outcome.
Management's outlook
No quantitative forward revenue or EPS guidance was provided in the 10-Q; outlook was deferred to the earnings release or call.
Earlier filings 4
10-K · February 5, 2026
Verisign presents a stable, high-margin domain registry business anchored by operation of the .com and .net gTLDs and two root servers, with revenue increasing to $1,656.0M (sum of 2025 quarters) and diluted EPS of…
10-Q · October 23, 2025
Verisign reported quarter revenue of $419.1M (up 7% YoY) and diluted EPS of $2.27 (vs $2.07 a year ago), with operating income of $284.3M (up 6% YoY). Cash generation remains strong with net cash provided by operating…
10-Q · July 24, 2025
Verisign reported Q2 revenue of $409.9M (up 6% YoY and up ~$7.9M vs prior quarter) and diluted EPS of $2.21 (vs $2.01 YoY), modestly beating consensus. Margins remained strong (gross ~88.0%, operating 68.5%), operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.