Start here if you're new
what it is
VeriSign runs the registry that keeps.com and.net names working, plus the internet root-zone service behind them.
how it gets paid
Last year Verisign made $1.7B in revenue..com registry services was the main engine at $1.10B, or 65% of sales.
why it's growing
Revenue grew 6.4% last year. Revenue rose 7% vs. prior year. The last reported result missed by 5.91% on EPS.
what just happened
VeriSign posted $419 million in September-quarter revenue while EPS came in short of the Street.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
27.5x trailing p/e — priced about right
1.3% dividend yield — cash in your pocket every quarter
68.4% return on capital — a money-printing machine
xvary composite: 73/100 — average
What they do
VeriSign runs the registry that keeps.com and.net names working, plus the internet root-zone service behind them.
You are buying the toll booth behind the internet. The business posts a 67.7% operating margin, which means about $0.68 of every sales dollar stays after running the company. Leaving is painful because your domain name lives inside VeriSign’s registry system.
How they make money
$1.7B
annual revenue · their business grew +6.4% last year
.com registry services
$1.10B
.net registry services
$0.24B
other registry services
$0.19B
Root Zone Maintainer services
$0.17B
The products that matter
operates the flagship global registry
.com Registry
161.6M registrations
it's the exclusive operator for.com, with 161.6 million registrations at the end of 2025. that's the core asset behind most of the company's $1.7B domain-services revenue.
core franchise
operates the secondary global registry
.net Registry
part of nearly 387M domains
.net runs under a separate contract, and together with.com sits inside a global domain base of nearly 387 million. it's smaller than.com, but it reinforces the same renewal model.
same model, smaller base
adjacent infrastructure services
Other Services
$100M · flat
this line contributes about $100M and was flat last year. useful, but it does not move the thesis when Domain Name Services still drives 94.4% of revenue.
not the thesis
Key numbers
$1.7B
annual revenue
This is the size of the toll booth. You are looking at a business that prints a lot from a small top line.
67.7%
op margin
Operating margin means money left after running the business. 67.7% means VeriSign keeps about 68 cents per sales dollar.
68.4%
return on capital
Return on capital means profit on invested money. At 68.4%, the business does more with one dollar than most firms do with five.
27.5x
trailing P/E
Price to earnings means what you pay for $1 of past profit. 27.5x is rich unless growth stays intact.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $1.8B (7% of capital)
- net profit margin 44.3% — keeps 44 cents of every dollar in revenue
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in VRSN 3 years ago → it's now worth $12,210.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
VeriSign posted $419 million in September-quarter revenue while EPS came in short of the Street.
Revenue rose 7% vs. prior year. The last reported result missed by 5.91% on EPS, which is small for most companies and loud for one priced at 27.5x earnings.
$419M
revenue
$2.23
eps
67.7%
gross margin
the number that mattered
The $2.23 EPS miss mattered because a tiny shortfall is still a miss when the stock trades like quality.
-
stock of the global provider of domain name registration services is down roughly 13% in value over the past three months.weighing on investor sentiment was the equity’s valuation following a strong price advance from 2024 levels, as well as concerns regarding slowing revenue growth over the near to intermediate terms. too, berkshire hathaway recently selling a portion of its stake probably added to the selling pressure.
-
at this time, the stock has been lowered one notch for timeliness, to 3 (average).
-
financial results for the third quarter of 2025 were on par with our expectations.
-
verisign posted revenues of $419 million for the september period, or a 7% vs. prior year improvement.
-
meanwhile, earnings of $2.27 per share jumped nearly 10% versus the previous-year tally.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the core risk is specific, not generic: verisign's economics depend on the.com contract structure staying favorable.
high
contract renewal risk
verisign's exclusive.com agreement with the u.s. department of commerce has to be renewed. the moat exists because a contract says it does.
a 10% price cut would reduce annual revenue by about $170M based on the $1.7B domain-services segment
med
domain growth slowdown
the domain base grew 2.6% last year, and 2026 guidance is 1.5% to 3.5%. the low end still means growth. it also means acceleration is not promised.
1.5% growth versus 3.5% is roughly a $36M annual revenue swing
med
concentration risk
Domain Name Services is 94.4% of revenue. that focus is why margins are so high. it's also why there is very little elsewhere to soften the blow if registry economics change.
most of the $1.8B revenue base is tied to one operating model
med
premium multiple risk
at 25.2x trailing earnings and about 26.6x forward earnings, the stock is priced like consistency is permanent. if growth drifts lower, the multiple does the damage even if the business stays fine.
the midpoint target of $266 is only about 8% above the current price
Domain Name Services accounts for 94.4% of revenue, so any adverse change in.com pricing or renewal terms would hit almost the entire income statement.
source: institutional data · regulatory filings · risk analysis
Pay attention to
regulatory
.com contract renewal
this is the whole story. if renewal terms change, pricing power changes with them.
growth
domain-base growth
management's 2026 range is 1.5% to 3.5%. if results keep landing near 1.5%, the market will treat this even more like a utility.
earnings
q1 2026 earnings report
expected in late april 2026. watch domain growth, expense control, and whether operating income still points to $1.16B–$1.18B for the year.
capital return
shareholder payouts
the company returned more than $1.1B to shareholders in 2025. that matters more when the core business grows steadily rather than quickly.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock moving with the market, not outrunning it.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks, which fits a business built on contract renewals and recurring fees.
chart momentum
average
technical score 3 — no breakdown, no breakout, just a stock waiting for a new reason to move.
earnings predictability
100 / 100
management's numbers are highly consistent. you are not buying surprise here. you are buying reliability.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 456 buyers vs. 352 sellers in 3q2025. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$200
$331
$246
current price
$266
target midpoint · +8% from current · 3-5yr high: $380 (+55% · 12% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive