VeriSign (VRSN) Q3 2026 Financial Results Summary
QuoteReporter
Verisign (VRSN) Q3 2026: Revenue Growth and EPS Increase — Positive Outlook
Verisign, Inc. (NASDAQ: VRSN) reported its financial results for the third quarter of 2026, showcasing a solid performance with revenue of $443 million, reflecting an increase of $24.9 million or 5.7% compared to the same quarter in 2025. This growth in revenue is accompanied by an increase in operating income, which rose to $296 million, up from $284 million year-over-year.
Key Financial Metrics:
- Revenue: $443 million, up $24.9 million or +5.7% YoY
- Operating Income: $296 million, up from $284 million YoY
- Net Income: $213 million, consistent with the same quarter last year
- Diluted EPS: $2.35, up from $2.27 YoY
- Cash Flow from Operations: $268 million, down from $308 million YoY
- Deferred Revenues: $1.46 billion, up $79 million from year-end 2025
- Share Repurchases: 0.7 million shares for $189 million
- Cash Dividend: $0.81 per share, payable on November 24, 2026
Analyst Opinion:
This quarter can be viewed positively for shareholders. The revenue growth of 5.7% and the increase in diluted EPS to $2.35 indicate that Verisign is effectively managing its operations and capitalizing on its market position. The consistent net income of $213 million demonstrates stability, despite the pre-tax operating loss of $7.5 million related to certain assets held for sale, which slightly impacted EPS by $0.06.
The increase in deferred revenues to $1.46 billion suggests a healthy pipeline for future revenue, which is crucial for sustaining growth. Additionally, the company’s decision to repurchase shares and declare a dividend reflects confidence in its financial health and commitment to returning value to shareholders.
Dividend and Share Buyback:
Verisign's Board of Directors approved a cash dividend of $0.81 per share, payable to stockholders of record as of November 17, 2026. This dividend, along with the share repurchase of 0.7 million shares for $189 million, indicates a proactive approach to enhancing shareholder value.
Forward-Looking Catalysts:
Investors should keep an eye on the rollout of the .web top-level domain and the limited beta phase of the Verisign Informed™ high-assurance validation service. These initiatives could significantly enhance Verisign's service offerings and market position, potentially driving further revenue growth in the upcoming quarters. Additionally, monitoring the renewal rates for .com and .net domains will be essential, as the final renewal rate for Q2 2026 was 75.2%, slightly down from 75.5% in Q2 2025.
In conclusion, Verisign's Q3 2026 results reflect a positive trajectory, with key metrics indicating growth and stability. The company's strategic initiatives and shareholder-friendly actions position it well for future success.
Here are the extracted financial tables from the press release:
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
Note: All amounts are in thousands.
| 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 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except per share data)
Note: All amounts are in thousands.
| Three Months Ended | September 30, 2025 | Nine Months Ended | September 30, 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 |
DisclaimerThe content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information. Related Articles Trending Stocks SS&C Technologies Holdings (SSNC) Q3 2026 Financial Results SummarySS&C Technologies (SSNC) Q3 2026: Revenue Growth Continues, EPS Steady — Positive Outlook SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) reported its Q3 2026 financial results, showcasing a solid performance with GAAP revenue of $1,690.0 million, reflecting an increase of $122.0 million or 7.8%... QuoteReporter 3 minOct 23, 2026  Trending Stocks Omnicom Group Inc. (OMC) Q3 2026 Financial Results SummaryOmnicom (OMC) Q3 2026: Strong Growth Post-IPG Acquisition — Positive Outlook Omnicom (NYSE: OMC) reported its third-quarter results for 2026, showcasing significant growth driven by the integration of The Interpublic Group of Companies (IPG). The company achieved a revenue increase of $2.4 billion,... QuoteReporter 2 minOct 23, 2026  Trending Stocks Comfort Systems USA (FIX) Q3 2026 Financial Results SummaryComfort Systems USA (FIX) Q3 2026: Revenue and Earnings Surge — Strongly Positive Comfort Systems USA, Inc. (NYSE: FIX) reported exceptional results for the third quarter of 2026, significantly outperforming the same quarter last year. The company achieved net income of $489.0 million, or $13.91... QuoteReporter 3 minOct 23, 2026 |