VeriSign, Inc. (VRSN) AI Stock Analysis

VeriSign, Inc. provides domain name registry services and essential internet infrastructure that enables navigation for globally recognized domain names. The company maintains the security, stability, and resiliency of internet infrastructure, which includes root zone maintainer services and operating two of the 13 internet root servers. VeriSign offers registration services and authoritative resolution for .com and .net domains, while also managing back-end systems for other domains like .cc, .gov, .edu, and .name. Additionally, it operates distributed servers and provides comprehensive networking, security, and data integrity services.

VeriSign has grown revenue steadily from $1.33B in FY2021 to $1.66B in FY2025, representing a 5-year revenue CAGR of 5.5%. Gross margin expanded from 85.5% in FY2021 to 88.2% in FY2025, while operating margin rose from 65.3% to 67.7% over the same timeframe. Net income reached $825.7M in FY2025, producing diluted EPS of $8.81. Over the trailing twelve months, revenue totaled $1.71B with a net profit margin of 49.8% and an operating margin of 68.2%. In the latest quarter ended June 30, 2026, revenue increased 6.0% year-over-year, and quarterly earnings grew 7.7%.

As of June 30, 2026, VeriSign held $1.03B in cash and short-term investments against total debt of $2.34B, resulting in net debt of $1.31B. The company carries a current ratio of 0.59 and negative shareholders' equity of -$2.25B against total assets of $1.80B. Operating cash flow reached $1.09B in FY2025, while capital expenditures were limited to $22.8M. VeriSign allocated capital primarily to shareholder distributions, spending $893.2M on share buybacks and $215.2M on dividends in FY2025, which contributed to an 18.0% reduction in share count over 5 years.

VeriSign trades at a trailing P/E of 32.7x and a forward P/E of 27.0x, above the median of its S&P 500 Technology peers at 30.8x and 20.3x, respectively. Its enterprise value stands at $27.82B, yielding an EV/EBITDA multiple of 23.1x versus the peer median of 19.5x, and a price-to-sales ratio of 16.0x compared to 6.2x for peers. Over the past year, the stock returned 17.8%, outpacing the S&P 500 ETF (SPY) return of 16.8%. Over a 5-year span, however, VeriSign's 43.5% return trailed the SPY return of 83.0%.

VeriSign pays a forward annual dividend of $3.24 per share, resulting in a dividend yield of 1.07%. The payout ratio is 34.7%, and dividends are distributed on a quarterly frequency, with consecutive payments maintained for 2 years. The last ex-dividend date occurred on August 19, 2026.

Wall Street analyst coverage includes 3 Strong Buy ratings, 0 Buy ratings, and 2 Hold ratings. The mean price target is $324.40, representing an upside of 7.3% from the last closing price of $302.34. For the fiscal year ending December 31, 2026, analysts estimate EPS of $9.58 on revenue of $1.75B. In the following fiscal year, 4 analysts project EPS of $10.86 and revenue of $1.92B. VeriSign has beat EPS expectations in 3 of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.

This page is an AI-written research summary of VeriSign, Inc. (VRSN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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