VRSN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Record new registrations of 13.1 million were driven by a synergistic convergence of business demand, marketing programs, and AI-enabled content creation. - Management attributes the 6.1% year-over-year growth in the domain base to the 'high assurance' reputation of .com and .net, which have maintained 100% availability for over 29 years. - AI is acting as a significant tailwind by making it easier for users to find domains, develop websites, and maintain online presence, which management believes increases the value of unique identifiers. - The decline in renewal rates to 74.3% is characterized as a mathematical outcome of a higher mix of first-time renewing names, which historically renew at lower rates than established names. - Strategic positioning focuses on the long-term digital economy growth, with management viewing domain names as vital for establishing digital credibility in an increasingly automated world. - The company is transitioning its capital allocation strategy to include a recurring quarterly dividend alongside its established share repurchase program. - Full-year 2026 domain name base growth guidance was narrowed and increased to a range of 6.5% to 7% based on strong performance in the first three quarters. - The .web launch sequence is scheduled to begin with a 30-day sunrise period in mid-December 2026, followed by a limited registration period through early April 2027. - Management expects to finalize pricing for the new VeriSign Informed (VI) security service by year-end 2026, with production delivery slated for the first half of 2027. - Revenue recognition from the recent .com price increase is expected to be gradual, with approximately 50% flowing through in 2027 and the remainder in 2028. - Future growth strategy involves leveraging existing registrar channels to distribute new high-assurance services like VI, which addresses gaps in digital credential revocation. - A $7.5 million pretax operating loss was recognized in Q3 related to certain assets held for sale, impacting diluted EPS by $0.06. - Management flagged that while AI aids registration, it also enables faster identification of security vulnerabilities, necessitating the launch of the VeriSign Informed service. - The company maintains an investment-grade status goal and noted that all VI development expenses are already included in current financial guidance. - Operating cash flow decreased year-over-year primarily due to higher cash taxes and payments to employees and vendors, despite higher customer collections. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management believes AI is a boost to a long-term trend of digital service adoption, making it easier for content creators to bind their work to a domain. - They noted that registrars are reporting AI as a specific factor in customer acquisition and website maintenance efficiency. - Unlike .com and .net, the .web registry agreement allows for pricing flexibility and premium name tiers which VeriSign intends to utilize. - Management views .web as a 'pure generic' TLD that offers more marketing flexibility because it is not regulated under the same constraints as .com. - Management observed that retail pricing has only moved about 1% or less since the notice, suggesting registrars may be absorbing the modest wholesale increase. - They emphasized that .com remains competitively priced compared to other generic TLDs, which often have much higher average retail prices. - The .pki TLD was specifically chosen to align with the company's security services and the launch of VeriSign Informed. - Management highlighted their historical expertise in Public Key Infrastructure as the basis for developing new trust-based services under this TLD.

This article first appeared on GuruFocus. - Revenue: $443 million, up 5.7% year-over-year. - Operating Expenses: $147 million, versus $138 million last quarter and $135 million in the year-ago quarter. - Operating Income: $296 million, up $12 million or 4.2% year-over-year, flat sequentially. - Net Income: $213 million, compared to $217 million last quarter and $213 million in the year-ago quarter. - Diluted EPS: $2.35, versus $2.38 last quarter and $2.27 in the year-ago quarter; assets-held-for-sale loss reduced EPS by $0.06. - Operating Cash Flow: $268 million, versus $308 million in the year-ago quarter. - Free Cash Flow: $261 million, versus $303 million in the year-ago quarter. - Cash, Cash Equivalents & Marketable Securities: $476 million at quarter end. - Domain Name Base (.com and .net): 182.5 million names, up 6.1% year-over-year; grew 3.4 million from prior quarter end. - New Registrations: Record 13.1 million in Q3, versus 12.7 million last quarter and 10.6 million in the year-ago quarter. - Renewal Rate: Expected 74.3% for Q3 2026, versus 75.4% a year ago. - Capital Returns: $1.14 billion returned to shareholders over the last 12 months via share repurchases and dividends; $1.36 billion remained authorized for share repurchases at quarter end. - Dividend: $0.81 per share declared, payable November 24, 2026 to shareholders of record as of November 17, 2026. - Full-Year 2026 Revenue Guidance: $1.755 billion to $1.760 billion. - Full-Year 2026 Operating Income Guidance: $1.188 billion to $1.192 billion. - Full-Year 2026 Domain Name Base Growth Guidance: Increased and narrowed to 6.5% to 7%. - Full-Year 2026 Capital Expenditures Guidance: $55 million to $65 million. - Full-Year 2026 GAAP Effective Tax Rate Guidance: 22% to 25%. - Warning! GuruFocus has detected 6 Warning Signs with VRSN. - Is VRSN fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - VeriSign Inc (NASDAQ:VRSN) reported record new registrations of 13.1 million in Q3 2026, up 24% year-over-year, driving domain name base growth of 6.1% to 182.5 million. - Revenue increased 5.7% year-over-year to $443 million, with operating income up 4.2% to $296 million. - VeriSign Inc (NASDAQ:VRSN) returned $1.14 billion to shareholders over the last 12 months through share repurchases and dividends, and declared a quarterly dividend of $0.81 per share. - The company raised its full-year 2026 domain name base growth guidance to 6.5%-7%, reflecting strong demand and positive trends. - VeriSign Inc (NASDAQ:VRSN) is preparing to launch .web in late 2026/early 2027, which will offer a short, generic TLD with pricing flexibility and marketing advantages. - The new Verisign Informed security service leverages the company's high-assurance infrastructure and is expected to begin production in the first half of 2027, with pricing finalized by year-end. - The renewal rate for Q3 2026 is expected to be 74.3%, down from 75.4% a year ago, due to a higher mix of first-time renewing names. - Operating expenses increased to $147 million from $138 million last quarter and $135 million a year ago, partly due to a $7.5 million pre-tax operating loss on assets held for sale. - Free cash flow decreased to $261 million from $303 million in the year-ago quarter, primarily due to higher cash taxes and payments to employees and vendors. - Net income remained flat year-over-year at $213 million, and diluted EPS decreased to $2.35 from $2.38 last quarter, impacted by the asset loss. - The .com price increase may face elasticity challenges, though registrars have not yet significantly raised retail prices, and the impact on renewal rates is uncertain. - Verisign Informed's pricing and monetization structure are not yet finalized, creating uncertainty about its revenue potential and market fit. Q: What is driving the record new domain registrations, and how are first-year renewal rates trending? A: CEO Jim Bidzos attributed the record 13.1 million new registrations to a "synergistic convergence" of demand from new business starts, registrar marketing programs, and an AI tailwind that makes it easier to find, build, and maintain websites, with content creators wanting their content bound by AI. CFO John Calys added that first-time renewal rates have remained steady in the mid-40% range and previously renewed names in the mid-80% range; the overall renewal rate decline to an expected 74.3% is purely a mix effect from the growing proportion of first-time renewing names. Q: What is the timing and strategic opportunity for the .web launch? A: CEO Jim Bidzos said the 30-day sunrise period is planned to begin in mid-December 2026, followed by a limited registration period in mid-January 2027 that could run into early April 2027, before general availability. He noted .web's early access ahead of the next gTLD round is an opportunity, but emphasized its enduring value as a short, generic TLD running on Verisign's high-assurance infrastructure, with pricing flexibility including premium names and more marketing freedom than .com and .net. Q: Why is Verisign positioned to win in the certificate revocation business with Verisign Informed, and how will it be priced? A: CEO Jim Bidzos said OCSP (Online Certificate Status Protocol) is difficult to perform as quickly as Verisign does DNS, and speed and reliability matter at the moment of trust decisions, especially for machine-to-machine interactions with agentic AI. He noted AI is extremely good at identifying vulnerabilities followed quickly by AI-enabled attack chains, making it critical to close vulnerability windows. Pricing is being finalized by year-end, with production service delivery expected in the first half of 2027. Q: How are registrars reacting to the .com wholesale price increase, and is there any early renewal pull-forward? A: CFO John Calys said that in the three months since the April notice, registrar retail price increases have been around 1% or less, and Verisign has not seen significant early renewals ahead of the November 1 effective date. CEO Jim Bidzos added the $0.71 increase is modest, registrars had six months' notice, and .com remains very competitively priced versus other gTLDs. IR head David Atchley confirmed about 50% of the price increase is expected to flow through to revenue in 2027, with most of the rest in 2028. Q: What is Verisign's strategic approach to new gTLDs, including .pki? A: CEO Jim Bidzos said .pki (public key infrastructure) is the only TLD Verisign applied for, chosen carefully because PKI is highly relevant to its security services. He noted Verisign's heritage in PKIits former parent RSA brought it to market and wrote the standards that enabled secure e-commerceand that Verisign Informed is very much a PKI-related service, with interesting opportunities being considered around .pki. Q: What assumptions are embedded in the raised 6.5% to 7% domain name base growth guidance? A: CFO John Calys said Verisign does not guide on individual components like gross adds and deletions, but expects continued good registration demand, with the fourth quarter typically seeing a seasonal downturn from the holiday season. He reiterated that a greater mix of first-time renewing nameswhich renew at roughly half the rate of previously renewed nameswill naturally push the renewal rate down slightly in Q4. Q: Could the strong registration growth slow next year, and what is the long-term outlook? A: CEO Jim Bidzos pointed to long trend lines: a growing digital economy, greater reliance on digital services, more businesses moving online, and AI as a recent boost. He said he doesn't think in terms of quarters or years, and while there may be ups and downs, the long trend line is strong, with registrars highly engaged and synergy across the factors driving growth. Q: How does the current surge in new registrations compare with the 2016 China surge in terms of renewal risk? A: CEO Jim Bidzos said the current situation is not nearly as dramatic as 2016, when first-time renewal rates "fell off the edge" in the following years due to a huge, abrupt influx of first-time renewing names. He added that Verisign's analysis of new registrations, where purpose can be identified, shows they fall into the best-renewing "online presence" cohort, tied to AI making it easier to build a meaningful website. Q: What milestones should investors watch to validate market fit for Verisign Informed? A: CEO Jim Bidzos declined to specify a monetization unit or precise milestones, directing investors to the verisigninformed.com microsite for blogs and technical reports, and noting engagement with standards bodies including ANSI and the C2PA Creators Forum, joint seminars with Forrester, and an open beta phase. He said pricing structure will be set by year-end and service availability in the first half of 2027, with quarterly updates to follow. Q: What were the key financial results for Q3 2026? A: CFO John Calys reported revenue of $443 million, up 5.7% year-over-year, and operating income of $296 million, up 4.2%. Net income was $213 million with diluted EPS of $2.35, reduced by $0.06 from a $7.5 million pre-tax loss on assets held for sale. Operating cash flow was $268 million and free cash flow $261 million, down year-over-year on higher cash taxes and payments, and the company ended the quarter with $476 million in cash and marketable securities. Q: What is the updated full-year 2026 guidance and capital return plan? A: CFO John Calys guided revenue to $1.755 billion to $1.760 billion and operating income to $1.188 billion to $1.192 billion, reflecting the $7.5 million Q3 charge, with capex of $55 million to $65 million and a GAAP tax rate of 22% to 25%. CEO Jim Bid For the complete transcript of the earnings call, please refer to the full earnings call transcript.

RESTON, Va., October 22, 2026--(BUSINESS WIRE)--VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the third quarter of 2026. VeriSign, Inc. and its subsidiaries ("Verisign") reported revenue of $443 million for the third quarter of 2026, up 5.7 percent from the same quarter in 2025. Operating income was $296 million for the third quarter of 2026, compared to $284 million for the same quarter of 2025. Verisign reported net income of $213 million and diluted earnings per share (diluted "EPS") of $2.35 for the third quarter of 2026, compared to net income of $213 million and diluted EPS of $2.27 for the same quarter of 2025. During the third quarter of 2026 the Company recognized a pre-tax operating loss of $7.5 million related to certain assets held for sale, which decreased diluted EPS by $0.06. "We delivered a strong quarter operationally, having grown the domain name base by 6.1% year-over-year. The rollout of the .web top-level domain is on track, and we opened the limited beta phase of our high-assurance validation service, Verisign Informed™, which can strengthen and enhance existing tools of trust that are deployed world-wide for authenticating data and users," said Jim Bidzos, Executive Chairman, President and Chief Executive Officer. Financial Highlights - Verisign ended the third quarter of 2026 with cash, cash equivalents and marketable securities of $476 million, a decrease of $104 million from year-end 2025. - Cash flow from operations was $268 million for the third quarter of 2026, compared to $308 million for the same quarter of 2025. - Deferred revenues as of September 30, 2026, totaled $1.46 billion, an increase of $79 million from year-end 2025. - During the third quarter of 2026, Verisign repurchased 0.7 million shares of its common stock for an aggregate cost of $189 million. As of September 30, 2026, there was $1.36 billion remaining for future share repurchases under the share repurchase program, which has no expiration. - On October 19, 2026, Verisign's Board of Directors approved a cash dividend of $0.81 per share of Verisign's outstanding common stock to stockholders of record as of the close of business on November 17, 2026, payable on November 24, 2026. Business Highlights - Verisign ended the third quarter of 2026 with 182.5 million .com and .net domain name registrations in the domain name base, a 6.1 percent increase from the end of the third quarter of 2025, and a net increase of 3.36 million domain names during the third quarter of 2026. - During the third quarter of 2026, Verisign processed 13.1 million new domain name registrations for .com and .net, compared with 10.6 million for the third quarter of 2025. - The final .com and .net renewal rate for the second quarter of 2026 was 75.2 percent compared to 75.5 percent for the same quarter of 2025. Renewal rates are not fully measurable until 45 days after the end of the quarter. Today's Conference Call Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the third quarter 2026 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (646) 769-9200 (international), conference ID: Verisign. A listen-only live web cast of the conference call and accompanying slide presentation will also be available at https://investor.verisign.com. An audio archive of the call will be available at https://investor.verisign.com/events.cfm. This news release and the financial information discussed on today's conference call are available at https://investor.verisign.com. About Verisign Verisign (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, enables internet navigation for many of the world's most recognized domain names. Verisign helps enable the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more please visit verisign.com. Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, attempted security breaches, cyber-attacks, and DDoS attacks against our systems and services; the introduction of undetected or unknown defects in our systems or services; vulnerabilities in the global routing system; system interruptions or system failures; advances in quantum computing; damage or interruptions to our data centers, data center systems or resolution systems; increases in the cost of compute and network hardware; risks arising from our operation of root servers and our performance of the Root Zone Maintainer functions; unsuccessful strategic initiatives or launches of new products or services; any loss or modification of our right to operate the .com and .net gTLDs; changes or challenges to the pricing provisions of the .com Registry Agreement; new or existing governmental laws and regulations in the U.S. or other applicable non-U.S. jurisdictions; new laws, regulations, directives or ICANN policies that require us to obtain and maintain personal information of registrants; economic, legal, regulatory, and political risks associated with our international operations; unfavorable changes in, or interpretations of, tax rules and regulations; risks from the implementation of ICANN's consensus and temporary policies, technical standards and other processes; the weakening of, or changes to, the multi-stakeholder model of internet governance; the outcome of claims, lawsuits, audits or investigations; challenging economic conditions; our ability to compete in the highly competitive business environment in which we operate; changes in internet practices and behavior and the adoption of substitute technologies, or the negative impact of wholesale price increases; our ability to expand our services into developing and emerging economies; our ability to maintain strong relationships with registrars and their resellers; our ability to attract, retain and motivate highly skilled employees; the continuity of our quarterly dividend; our ability to protect and enforce our intellectual property rights; challenges from the use of AI technology by third-parties, autonomous agents, or us; and the impact on our stock price from the dissemination of false or misleading information by unrelated third parties. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended Dec. 31, 2025, our Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2026 and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement. ©2026 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners. VERISIGN, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In millions, except par value)(Unaudited) | | | | September 30, 2026 | | December 31, 2025 ASSETS | | | Current assets: | | | Cash and cash equivalents | $ | 206.8 | | | $ | 307.9 | Marketable securities | | 269.3 | | | | 272.6 | Other current assets | | 97.4 | | | | 72.0 | Total current assets | | 573.5 | | | | 652.5 | Property and equipment, net | | 221.2 | | | | 213.7 | Goodwill | | 52.5 | | | | 52.5 | Intangible assets | | 171.4 | | | | — | Deferred tax assets | | 218.1 | | | | 233.2 | Deposits to acquire intangible assets | | — | | | | 145.2 | Other long-term assets | | 43.4 | | | | 28.8 | Total long-term assets | | 706.6 | | | | 673.4 | Total assets | $ | 1,280.1 | | | $ | 1,325.9 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | Current liabilities: | | | Accounts payable and accrued liabilities | $ | 286.8 | | | $ | 298.0 | Deferred revenues | | 1,094.4 | | | | 1,035.1 | Total current liabilities | | 1,381.2 | | | | 1,333.1 | Long-term deferred revenues | | 368.9 | | | | 349.4 | Long-term senior notes | | 1,785.9 | | | | 1,788.2 | Other long-term liabilities | | 28.8 | | | | 9.4 | Total long-term liabilities | | 2,183.6 | | | | 2,147.0 | Total liabilities | | 3,564.8 | | | | 3,480.1 | Commitments and contingencies | | | Stockholders' deficit: | | | Preferred stock—par value $.001 per share; Authorized shares: 5.0; Issued and outstanding shares: none | | — | | | | — | Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000; Issued shares: 355.9 at September 30, 2026 and 355.6 at December 31, 2025; Outstanding shares: 89.8 at September 30, 2026 and 91.9 at December 31, 2025 | | 8,849.6 | | | | 9,623.5 | Accumulated deficit | | (11,131.4 | ) | | | (11,775.0 | ) Accumulated other comprehensive loss | | (2.9 | ) | | | (2.7 | ) Total stockholders' deficit | | (2,284.7 | ) | | | (2,154.2 | ) Total liabilities and stockholders' deficit | $ | 1,280.1 | | | $ | 1,325.9 | VERISIGN, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In millions, except per share data)(Unaudited) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Revenues | $ | 443.0 | | | $ | 419.1 | | | $ | 1,306.5 | | | $ | 1,231.3 | Costs and expenses: | | | | | | | Cost of revenues | | 49.8 | | | | 48.8 | | | | 149.0 | | | | 147.3 | Research and development | | 26.5 | | | | 25.4 | | | | 81.5 | | | | 77.1 | Selling, general and administrative | | 70.2 | | | | 60.6 | | | | 189.6 | | | | 170.7 | Total costs and expenses | | 146.5 | | | | 134.8 | | | | 420.1 | | | | 395.1 | Operating income | | 296.5 | | | | 284.3 | | | | 886.4 | | | | 836.2 | Interest expense | | (21.2 | ) | | | (18.9 | ) | | | (59.3 | ) | | | (58.1 | ) Non-operating income, net | | 4.3 | | | | 6.3 | | | | 13.5 | | | | 19.3 | Income before income taxes | | 279.6 | | | | 271.7 | | | | 840.6 | | | | 797.4 | Income tax expense | | (67.0 | ) | | | (58.9 | ) | | | (197.0 | ) | | | (177.9 | ) Net income | | 212.6 | | | | 212.8 | | | | 643.6 | | | | 619.5 | Other comprehensive (loss) income | | (0.1 | ) | | | 0.1 | | | | (0.2 | ) | | | (0.2 | ) Comprehensive income | $ | 212.5 | | | $ | 212.9 | | | $ | 643.4 | | | $ | 619.3 | | | | | | | | Earnings per share: | | | | | | | Basic | $ | 2.36 | | | $ | 2.28 | | | $ | 7.08 | | | $ | 6.60 | Diluted | $ | 2.35 | | | $ | 2.27 | | | $ | 7.06 | | | $ | 6.58 | Shares used to compute earnings per share | | | | | | | Basic | | 90.1 | | | | 93.3 | | | | 90.8 | | | | 93.9 | Diluted | | 90.4 | | | | 93.6 | | | | 91.1 | | | | 94.1 | VERISIGN, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited) | | Nine Months Ended September 30, | | 2026 | | | | 2025 | Cash flows from operating activities: | | | Net income | $ | 643.6 | | | $ | 619.5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | Depreciation of property and equipment | | 19.8 | | | | 24.5 | Stock-based compensation expense | | 58.8 | | | | 51.8 | Amortization of discount on investments in debt securities | | (5.3 | ) | | | (8.2 | ) Other, net | | 10.2 | | | | 2.4 | Changes in operating assets and liabilities: | | | Other assets | | (40.4 | ) | | | (3.2 | ) Other liabilities | | (8.5 | ) | | | 20.6 | Deferred revenues | | 78.9 | | | | 80.1 | Net deferred income taxes | | 15.2 | | | | 14.0 | Net cash provided by operating activities | | 772.3 | | | | 801.5 | Cash flows from investing activities: | | | Proceeds from maturities and sales of marketable securities | | 354.7 | | | | 412.5 | Purchases of marketable securities | | (346.3 | ) | | | (393.6 | ) Purchases of property and equipment | | (33.6 | ) | | | (18.3 | ) Other investing activities | | (7.7 | ) | | | — | Net cash (used in) provided by investing activities | | (32.9 | ) | | | 0.6 | Cash flows from financing activities: | | | Repurchases of common stock | | (620.0 | ) | | | (627.2 | ) Repayment of borrowings | | (550.0 | ) | | | (500.0 | ) Proceeds from senior note issuance, net of issuance costs | | 545.0 | | | | 493.3 | Payment of dividends | | (220.8 | ) | | | (144.1 | ) Proceeds from employee stock purchase plan | | 12.7 | | | | 12.3 | Payment of excise tax on repurchase of common stock | | (7.9 | ) | | | (11.6 | ) Net cash used in financing activities | | (841.0 | ) | | | (777.3 | ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | 0.5 | | | | 0.1 | Net (decrease) increase in cash, cash equivalents, and restricted cash | | (101.1 | ) | | | 24.9 | Cash, cash equivalents, and restricted cash at beginning of period | | 309.5 | | | | 212.1 | Cash, cash equivalents, and restricted cash at end of period | $ | 208.4 | | | $ | 237.0 | Supplemental cash flow disclosures: | | | Cash paid for interest | $ | 49.9 | | | $ | 55.4 | Cash paid for income taxes, net of refunds received | $ | 195.5 | | | $ | 169.3 | View source version on businesswire.com: https://www.businesswire.com/news/home/20261022472995/en/ Contacts Investor Relations: David Atchley, [email protected], 703-948-3447 Media Relations: David McGuire, [email protected], 703-948-3800

- Interested in VeriSign, Inc.? Here are five stocks we like better. - VeriSign's Q3 revenue rose 5.7% year over year to $443 million, while .com and .net registrations reached a record 13.1 million and the combined domain base grew 6.1% to 182.5 million names. The company raised and narrowed its full-year domain-base growth outlook to 6.5%-7%. - Management expects a 74.3% renewal rate, down from 75.4% a year earlier because of the growing share of first-time renewals, but said established renewal cohorts remain stable. The April .com price increase is expected to contribute roughly half its revenue impact in 2027 and most of the remainder in 2028. - VeriSign is preparing to launch the .web domain, with a sunrise period expected in mid-December and limited registrations beginning in mid-January 2027. It also plans to begin production delivery of its VeriSign Informed certificate-status service in the first half of 2027. - Buffett Trims Apple, Bets Big on Alphabet Ahead of Retirement VeriSign (NASDAQ:VRSN) reported third-quarter 2026 revenue of $443 million, up 5.7% from a year earlier, as demand for .com and .net domain names continued to accelerate. The company raised and narrowed its full-year outlook for domain-name-base growth to 6.5% to 7%. The combined .com and .net domain-name base reached 182.5 million names at the end of the quarter, an increase of 6.1% year over year. The base expanded by 3.4 million names from the prior quarter, while new registrations totaled a record 13.1 million, compared with 12.7 million in the second quarter and 10.6 million in the year-ago period. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - Why These 3 Market-Beaters Are Backing Up Their Buyback Trucks Executive Chairman, President and CEO Jim Bidzos said registrars' customer-acquisition efforts, VeriSign marketing programs and the adoption of artificial-intelligence tools have contributed to registration growth. He said AI can make it easier to find a domain name, build a website and maintain online content. "The ongoing strength in new registrations attests to the vital role that domain names play in discovering content and establishing digital credibility," Bidzos said. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - 3 American Outperformers Are Lifting and Initiating Dividends Third-quarter operating income was $296 million, up 4.2% from a year earlier and flat sequentially. Net income was $213 million, unchanged from the same period last year and down from $217 million in the second quarter. Diluted earnings per share were $2.35, compared with $2.27 a year earlier and $2.38 in the prior quarter. Operating expenses totaled $147 million, up from $135 million in the prior-year quarter. CFO John Calys said the company recognized a $7.5 million pre-tax operating loss tied to certain assets held for sale, accounting for most of the sequential increase in expenses. The charge reduced current-quarter EPS by $0.06. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Operating cash flow was $268 million and free cash flow was $261 million, compared with $308 million and $303 million, respectively, a year earlier. Calys attributed the year-over-year decline primarily to higher cash taxes and increased payments to employees and vendors, partly offset by greater customer cash collections. VeriSign ended the quarter with $476 million in cash, cash equivalents and marketable securities. Over the last 12 months, it returned $1.14 billion to shareholders through dividends and share repurchases. The company had $1.36 billion remaining under its share-repurchase authorization at quarter-end. The board approved a quarterly cash dividend of $0.81 per share, payable Nov. 24 to shareholders of record as of Nov. 17. VeriSign said it intends to continue paying a quarterly dividend. - Full-year revenue guidance: $1.755 billion to $1.760 billion. - Full-year operating income guidance: $1.188 billion to $1.192 billion, including the $7.5 million third-quarter asset-related expense. - Expected net interest expense and non-operating expense: $59 million to $65 million. - Expected capital expenditures: $55 million to $65 million. - Expected GAAP effective tax rate: 22% to 25%. VeriSign expects its third-quarter renewal rate to be 74.3%, down from 75.4% a year ago. Management said the decline reflects a greater share of first-time renewing domains following strong new-registration activity over the past year. Calys said first-time renewal rates have remained in the mid-40% range, while renewal rates for previously renewed names have remained in the mid-80% range. He said the increasing proportion of first-time renewing domains naturally lowers the overall renewal rate, although the company has not seen significant changes in either cohort's renewal behavior. Bidzos added that VeriSign's analysis indicates many recent registrations fall within the company's "online presence" cohort, which he described as its best-renewing cohort. Management also said it had not seen a significant increase in registrar retail pricing following the April announcement of a .com price increase. Calys said average registrar pricing changes over the subsequent three months were around 1% or less. The company had not observed significant early renewal activity ahead of the price increase's Nov. 1 effective date. David Atchley, vice president of finance and corporate treasurer, reiterated that VeriSign expects about half of the .com price increase to be reflected in 2027 revenue, with most of the remaining impact expected in 2028. VeriSign said it is preparing to launch the .web top-level domain after its delegation into the internet's root zone. The company plans to begin the required 30-day sunrise period in mid-December, followed by a limited registration period beginning in mid-January that could extend into early April 2027. General availability is expected after that period. During the limited registration period, most holders of .com domains will have an opportunity to register an exact-match .web domain. VeriSign said it is finalizing pricing and expects to communicate its plans to registrars in the coming weeks. The .web registry agreement permits pricing flexibility, including premium-name pricing. Bidzos said .web's position as a short and generic top-level domain, combined with VeriSign's infrastructure, should provide an enduring value proposition beyond any near-term timing advantage over future new top-level-domain launches. The company also discussed VeriSign Informed, a certificate-status security service announced Oct. 5. The service is designed to provide current information on whether digital certificates have been revoked, supporting use cases including network access, secure email, software distribution and web certificates. Bidzos said the service is already operational within VeriSign's infrastructure and that expenses associated with it are included in financial results through 2026 guidance. The company expects to finalize pricing by year-end and begin production service delivery in the first half of 2027. VeriSign Informed is currently entering a beta phase, according to management. VeriSign, Inc (NASDAQ: VRSN) provides internet infrastructure services that support the global domain name system. The company operates the authoritative registry for the .com and .net top-level domains and provides registry services for certain other domains, helping maintain the databases that connect domain names with internet addresses. The company's services include domain name registry operations, domain name registration-related support for accredited registrars, and infrastructure designed to improve the availability, stability, and security of internet naming services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What VeriSign (VRSN) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

VeriSign (VRSN) came out with quarterly earnings of $2.41 per share, missing the Zacks Consensus Estimate of $2.42 per share. This compares to earnings of $2.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.41%. A quarter ago, it was expected that this internet infrastructure services provider would post earnings of $2.36 per share when it actually produced earnings of $2.38, delivering a surprise of +0.85%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. VeriSign, which belongs to the Zacks Internet - Software and Services industry, posted revenues of $443 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.28%. This compares to year-ago revenues of $419.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. VeriSign shares have added about 26.5% since the beginning of the year versus the S&P 500's gain of 13.3%. While VeriSign has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for VeriSign was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.47 on $450.48 million in revenues for the coming quarter and $9.59 on $1.76 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software and Services is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Nebius Group (NBIS), another stock in the same industry, has yet to report results for the quarter ended September 2026. This an AI-centric cloud platform is expected to post quarterly loss of $0.53 per share in its upcoming report, which represents a year-over-year change of -35.9%. The consensus EPS estimate for the quarter has been revised 5.8% lower over the last 30 days to the current level. Nebius Group's revenues are expected to be $914.15 million, up 525.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VeriSign, Inc. (VRSN) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RESTON, Va., October 22, 2026--(BUSINESS WIRE)--VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today announced that, according to the latest Domain Name Industry Brief Quarterly Report from DNIB.com, the third quarter of 2026 closed with 411.6 million domain name registrations across all top-level domains (TLDs), an increase of 9.9 million domain name registrations, or 2.5% compared to the second quarter of 2026. Domain name registrations also increased by 33.0 million, or 8.7%, year over year. The .com and .net TLDs had a combined total of 182.5 million domain name registrations in the domain name base at the end of the third quarter of 2026, an increase of 3.4 million domain name registrations, or 1.9% compared to the second quarter of 2026. The .com and .net TLDs had a combined increase of 10.5 million domain name registrations, or 6.1%, year over year. As of Sept. 30, 2026, the .com domain name base totaled 169.8 million domain name registrations and the .net domain name base totaled 12.6 million domain name registrations. New .com and .net domain name registrations totaled 13.1 million at the end of the third quarter of 2026, compared to 10.6 million domain name registrations at the end of the third quarter of 2025. Total country-code TLD (ccTLD) domain name registrations were 151.4 million at the end of the third quarter of 2026, an increase of 2.8 million domain name registrations, or 1.9% compared to the second quarter of 2026. ccTLDs increased by 6.6 million domain name registrations, or 4.6%, year over year. The top 10 ccTLDs, as of Sept. 30, 2026, were .cn, .de, .uk, .ru, .nl, .br, .fr, .au, .in and .eu. Information about the statistical methodology used in creating the Domain Name Industry Brief Quarterly Report and DNIB.com's dashboards is available here. About DNIB.com DNIB.com, sponsored by Verisign, provides global statistical and analytical research and data on the domain name industry, plus analyses of key policy, security, and technology trends. The latest Domain Name Industry Brief Quarterly Report, previous reports, and interactive dashboards with expanded domain name industry data are all available at DNIB.com. About Verisign Verisign (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, enables internet navigation for many of the world's most recognized domain names. Verisign helps enable the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more please visit verisign.com. © 2026 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, Domain Name Industry Brief, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners. View source version on businesswire.com: https://www.businesswire.com/news/home/20261022233391/en/ Contacts Investor Relations: David Atchley, [email protected], + 1 703-948-3447 Media Relations: Dave McGuire, [email protected], + 1 703-948-3800

VeriSign, Inc. (VRSN), headquartered in Reston, Virginia, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names. Valued at $26 billion by market cap, the company enables the security, stability, and resiliency of key internet infrastructure and services, as well as provides root zone maintainer services. The global provider of critical internet infrastructure and domain name registry services is expected to announce its fiscal third-quarter earnings for 2026 after the market closes on Thursday, Oct. 22. Ahead of the event, analysts expect VeriSign to report a profit of $2.42 per share on a diluted basis, up 6.6% from $2.27 per share in the year-ago quarter. The company beat the consensus estimates in two of the last three quarters while missing the forecast on another occasion. - What a 20-Year Deal With Amazon Means for Constellation Energy Stock - Marvell Stock Investors Have 1 Date to Watch. Here's What Could Be Revealed. - Trump Says Towns That Block Data Centers Will End Up 'Backwards and Poor' and Promises 'Far Lower Taxes' to the Ones That Say Yes - Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect VeriSign to report EPS of $9.59, up 8.9% from $8.81 in fiscal 2025. Its EPS is expected to rise 13% year over year to $10.84 in fiscal 2027. VRSN stock has underperformed the S&P 500 Index's ($SPX) 15% gains over the past 52 weeks, with shares up 4.7% during this period. Similarly, it notably underperformed the State Street Technology Select Sector SPDR ETF's (XLK) 40.2% gains over the same time frame. VRSN's underperformance stems primarily from growth moderation in its core .com and .net domain registries, where new website creation slowed following post-pandemic highs. This volume deceleration sparked analyst downgrades and valuation multiple compression, as small businesses increasingly rely on third-party digital platforms, like social commerce and direct storefronts over traditional web domains. Additionally, higher spending on IT infrastructure and security initiatives slightly squeezed operating margins. Although VRSN maintains net profit margins above 50% and aggressive share buybacks, investor caution remains tied to its single-service dependency and a lack of immediate catalysts beyond scheduled wholesale price increases. Analysts' consensus opinion on VRSN stock is moderately bullish, with a "Moderate Buy" rating overall. Out of five analysts covering the stock, three advise a "Strong Buy" rating, and two give a "Hold." VRSN's average analyst price target is $334.25, indicating a potential upside of 15.9% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com