VeriSign, Inc. (VRSN) Earnings
VeriSign, Inc. is expected to report next earnings on October 22, 2026 (in NaN days), with a consensus EPS estimate of $2.41. VRSN has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise -0.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $2.42 | $2.38 | -1.7% | $435M | +0.3% |
| Apr 23, 2026 | $2.30 | $2.34 | +1.7% | $429M | +1.0% |
| Feb 5, 2026 | $2.29 | $2.23 | -2.5% | $425M | +0.4% |
| Oct 23, 2025 | $2.25 | $2.27 | +0.9% | $419M | +0.7% |
| Jul 24, 2025 | $2.20 | $2.21 | +0.5% | $410M | -0.2% |
| Apr 24, 2025 | $2.11 | $2.10 | -0.5% | $402M | +0.1% |
| Feb 6, 2025 | $2.00 | $2.00 | -0.1% | $395M | +0.3% |
| Oct 24, 2024 | $2.01 | $2.07 | +2.9% | $391M | +0.1% |
| Jul 25, 2024 | $1.93 | $2.01 | +4.0% | $387M | +0.3% |
| Apr 25, 2024 | $1.86 | $1.92 | +3.1% | $384M | +0.6% |
| Feb 8, 2024 | $1.86 | $1.92 | +3.1% | $380M | +0.5% |
| Oct 26, 2023 | $1.81 | $1.83 | +1.1% | $376M | -0.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 23, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Milestones & Core Domain Performance * VeriSign marked 29 years of 100% availability for the .com and .net domain name resolution system, an unprecedented industry milestone. * The combined .com and .net domain name base reached 179.1 million names, growing by 3.05 million sequentially in Q2 2026. * Q2 2026 new domain registrations hit a record 12.7 million, up from 11.5 million in Q1 2026 and 10.4 million in Q2 2025 (21% year-over-year growth). The expected Q2 renewal rate is 75.2%, slightly down from 75.5% a year prior, and the previously renewed domain base has a mid-80% renewal rate. * The company has seen a substantial increase in DNS transaction volume to its servers, and maintaining high-assurance reliable infrastructure remains the core priority. - Capital Return & Dividend Updates * The Board of Directors increased the authorized share repurchase program by $884 million, bringing total available repurchase authorization to $1.5 billion with no expiration date. * The Board approved a $0.81 per share quarterly cash dividend, payable August 27, 2026 to shareholders of record as of August 19, 2026, and the company intends to maintain quarterly dividend payouts going forward. VeriSign returns over 100% of free cash flow to investors. - .web TLD Update * .web has been successfully delegated into the Global Domain Name Systems Root Zone with VeriSign as registry operator, following resolution of all prior legal disputes. * .web is scheduled to launch to the general public through VeriSign's existing registrar partner channel later in 2026; no meaningful revenue or expenses related to .web are expected in 2026. * Unlike .com and .net, .web is not subject to U.S. government regulatory pricing restrictions, giving VeriSign full wholesale pricing flexibility (only requiring 6 months notice to channel partners) and the ability to sell premium domain names, a capability not available for .com/.net. - New Product Development * Development of previously announced new security-focused products has continued uninterrupted, with products already operational in test mode since early 2026. Rollout was only paused temporarily while the company focused on resolving the .web delegation, and rollout will proceed in the coming months.
Guidance
- Full-year 2026 domain name base growth guidance was increased and narrowed to a range of 5.2% to 6%, up from prior lower guidance, driven by stronger-than-expected performance in the first half of 2026. - Full-year 2026 interest, non-operating net expense guidance is narrowed to a range of $59 million to $65 million, reflecting the impact of completed debt refinancing completed during the quarter. - Full-year 2026 capital expenditure guidance is maintained at $55 million to $65 million, which already accounts for elevated server and memory chip prices. - Full-year 2026 effective tax rate guidance remains at 22% to 25%. - No meaningful 2026 revenue or expense from the upcoming .web launch is included in current guidance, and all expected 2026 .web-related costs are already factored into the current full-year guidance.
Segment performance
The transcript does not break out financial performance for separate product segments. All revenue and profitability results are reported for the company as a whole: Q2 2026 total revenue was $435 million, a 6% increase year-over-year. Total operating expenses were $138 million, compared to $135 million in Q1 2026 and $121 million in Q2 2025. Operating income totaled $296 million, a 5.6% increase year-over-year, and a 0.9% increase sequentially. Net income was $217 million, compared to $215 million in Q1 2026 and $207 million in Q2 2025. Diluted earnings per share was $2.38, compared to $2.34 in Q1 2026 and $2.21 in Q2 2025. Operating cash flow was $232 million and free cash flow was $213 million in the quarter. At quarter end, the company held $1.034 billion in cash, cash equivalents, and marketable securities.
Risks & headwinds
No new material risks or operational failures were explicitly discussed on the call. Management only noted that forward-looking statements are subject to the general risks and uncertainties already disclosed in the company's most recent SEC filings on Form 10-K and Form 10-Q.
Analyst Q&A
Q: What is driving the recent strong growth in new domain registrations, and is the strength partially due to pull-forward demand ahead of the November .com wholesale price increase? /
A: Growth comes from multiple synergistic factors: VeriSign's 29-year record of 100% uptime builds registrant confidence, AI has created strong tailwinds by making it easier for businesses and content creators to find domains, build websites, and create content, and improved marketing programs adapted to changing registrar business models are driving results. Growth is concentrated in the U.S. and EMEA, which have higher historical renewal rates, supporting long-term profitability. Management does not see pull-forward from the upcoming price increase as a material factor in the current strong registration results.
Q: How will the go-to-market and regulatory structure for .web differ from .com and .net, and what is the rollout timeline? /
A: Unlike .com and .net, which are regulated by a cooperative agreement with the U.S. Department of Commerce that restricts pricing, .web operates under a standard ICANN registry agreement, giving VeriSign full wholesale pricing flexibility with only a 6-month notice requirement to registrars, and allowing premium domain sales. The rollout timeline starts with a mandatory 90-day security testing period, followed by a mandatory 30-day sunrise period where only trademark holders can register .web domains, putting general availability around 120 days after delegation. Most sales are expected to come through existing retail registrar partners, with opportunities for both existing .com registrants to purchase matching .web domains as companions and net new registrations.
Q: Is the recent faster domain growth structurally driven by AI, and can this higher growth rate be sustained? /
A: AI is the largest external driver of the current faster growth, because it obscures the technical complexity of getting online and makes it much easier for new users to launch websites and domains. The DNS system's inherent advantages: ICANN-governed security, stability, and global reach, make it the most trusted foundation for online identity, and AI is increasing the value of credible branded domain names for businesses competing in AI-driven search. VeriSign's ability to adapt to channel changes and expand its TLD portfolio positions it to benefit from this structural shift.
Q: How will the November 2026 .com price increase flow through to reported revenue? /
A: Revenue from domain registrations is recognized ratably over the life of the registration, so the full impact of the price increase will take roughly two years to flow completely into reported revenue. Approximately 50% of the 7% November price increase will be recognized in 2027 revenue, with the remaining 50% recognized in 2028 and beyond for multi-year registration terms.