Verisign Reports Third Quarter 2026 Results
VERISIGN INC/CA (VRSN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Verisign Reports Third Quarter 2026 Results RESTON, VA - Oct. 22, 2026 - 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
How this was made
The 30-second read
Why it matters
The earnings beat and new dividend may attract income‑focused investors while the modest growth keeps the stock within its current valuation range.
Market read
Fresh earnings data with a dividend announcement offers a short‑term trading opportunity for VRSN and may influence related infrastructure stocks.
What to watch
Potential headwinds from renewal rate dip and upcoming .web TLD launch costs could pressure margins.
Verisign Reports Third Quarter 2026 Results
Third-quarter revenue rose 5.7 percent year over year to $443 million, operating income increased to $296.5 million, and the domain name base grew 6.1 percent. Net income was essentially unchanged at $212.6 million, while the company recorded a $7.5 million pre-tax operating loss related to assets held for sale that reduced diluted EPS by $0.06.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $443M | – | 5.7 percent |
| Cost of revenues, three months ended September 30, 2026GAAP | $49.8M | – | – |
| Research and development, three months ended September 30, 2026GAAP | $26.5M | – | – |
| Selling, general and administrative, three months ended September 30, 2026GAAP | $70.2M | – | – |
| Total costs and expenses, three months ended September 30, 2026GAAP | $146.5M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $296.5M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $21.2M | – | – |
| Non-operating income, net, three months ended September 30, 2026GAAP | $4.3M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $279.6M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $67M | – | – |
| Net income, three months ended September 30, 2026GAAP | $212.6M | – | – |
| Other comprehensive loss, three months ended September 30, 2026GAAP | $100K | – | – |
| Comprehensive income, three months ended September 30, 2026GAAP | $212.5M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $2.36 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $2.35 | – | – |
| Shares used to compute basic earnings per share, three months ended September 30, 2026GAAP | 90.1M | – | – |
| Shares used to compute diluted earnings per share, three months ended September 30, 2026GAAP | 90.4M | – | – |
| Operating loss related to certain assets held for sale, three months ended September 30, 2026GAAP | $7.5 million pre-tax | – | – |
| Diluted EPS decrease from operating loss related to certain assets held for sale, three months ended September 30, 2026GAAP | $0.06 | – | – |
| Cash flow from operations, three months ended September 30, 2026GAAP | $268M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $1.31B | – | – |
| Cost of revenues, nine months ended September 30, 2026GAAP | $149M | – | – |
| Research and development, nine months ended September 30, 2026GAAP | $81.5M | – | – |
| Selling, general and administrative, nine months ended September 30, 2026GAAP | $189.6M | – | – |
| Total costs and expenses, nine months ended September 30, 2026GAAP | $420.1M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $886.4M | – | – |
| Interest expense, nine months ended September 30, 2026GAAP | $59.3M | – | – |
| Non-operating income, net, nine months ended September 30, 2026GAAP | $13.5M | – | – |
| Income before income taxes, nine months ended September 30, 2026GAAP | $840.6M | – | – |
| Income tax expense, nine months ended September 30, 2026GAAP | $197M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $643.6M | – | – |
| Other comprehensive loss, nine months ended September 30, 2026GAAP | $200K | – | – |
| Comprehensive income, nine months ended September 30, 2026GAAP | $643.4M | – | – |
| Basic earnings per share, nine months ended September 30, 2026GAAP | $7.08 | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $7.06 | – | – |
| Shares used to compute basic earnings per share, nine months ended September 30, 2026GAAP | 90.8M | – | – |
| Shares used to compute diluted earnings per share, nine months ended September 30, 2026GAAP | 91.1M | – | – |
| .com and .net domain name registrations in the domain name base, end of third quarter of 2026other | 182.5M | – | 6.1 percent |
| Net increase in domain names, three months ended September 30, 2026other | 3.36 million domain names | – | – |
| New .com and .net domain name registrations, three months ended September 30, 2026other | 13.1M | – | – |
| Final .com and .net renewal rate, second quarter of 2026other | 75.2 percent | – | – |
Capital returns
- 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.
- Repurchases of common stock were $620.0 million for the nine months ended September 30, 2026, compared to $627.2 million for the nine months ended September 30, 2025.
- Payment of dividends was $220.8 million for the nine months ended September 30, 2026, compared to $144.1 million for the nine months ended September 30, 2025.
- Payment of excise tax on repurchase of common stock was $7.9 million for the nine months ended September 30, 2026, compared to $11.6 million for the nine months ended September 30, 2025.
What drove it
- The .com and .net domain name base reached 182.5 million registrations, a 6.1 percent increase from the end of the third quarter of 2025.
- Verisign processed 13.1 million new .com and .net domain name registrations during the third quarter of 2026, compared with 10.6 million in the third quarter of 2025.
- The company reported a net increase of 3.36 million domain names during the third quarter of 2026.
- The rollout of the .web top-level domain is on track.
- Verisign opened the limited beta phase of its high-assurance validation service, Verisign Informed™.
Concerns
- 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.
- Cash flow from operations was $268 million in the third quarter of 2026, compared to $308 million in the same quarter of 2025.
- Verisign recognized a pre-tax operating loss of $7.5 million related to certain assets held for sale, decreasing diluted EPS by $0.06.
- Selling, general and administrative expense was $70.2 million in the third quarter of 2026, compared to $60.6 million in the same quarter of 2025.
- Interest expense was $21.2 million in the third quarter of 2026, compared to $18.9 million in the same quarter of 2025.
What to watch
- The final .com and .net renewal rate, which is not fully measurable until 45 days after the end of the quarter.
- Domain name base growth and new .com and .net domain name registrations.
- Progress of the .web top-level-domain rollout.
- Development of the limited beta phase of Verisign Informed™.
- Execution of the authorized share repurchase program, with $1.36 billion remaining as of September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $206.8 million at September 30, 2026, compared to $307.9 million at December 31, 2025.
- Marketable securities were $269.3 million at September 30, 2026, compared to $272.6 million at December 31, 2025.
- Cash, cash equivalents and marketable securities were $476 million at the end of the third quarter of 2026, a decrease of $104 million from year-end 2025.
- Other current assets were $97.4 million at September 30, 2026, compared to $72.0 million at December 31, 2025.
- Total current assets were $573.5 million at September 30, 2026, compared to $652.5 million at December 31, 2025.
- Property and equipment, net, was $221.2 million at September 30, 2026, compared to $213.7 million at December 31, 2025.
- Goodwill was $52.5 million at September 30, 2026 and December 31, 2025.
- Intangible assets were $171.4 million at September 30, 2026, compared to $0 at December 31, 2025.
- Deposits to acquire intangible assets were $0 at September 30, 2026, compared to $145.2 million at December 31, 2025.
- Deferred tax assets were $218.1 million at September 30, 2026, compared to $233.2 million at December 31, 2025.
- Other long-term assets were $43.4 million at September 30, 2026, compared to $28.8 million at December 31, 2025.
- Total assets were $1,280.1 million at September 30, 2026, compared to $1,325.9 million at December 31, 2025.
- Accounts payable and accrued liabilities were $286.8 million at September 30, 2026, compared to $298.0 million at December 31, 2025.
- Deferred revenues were $1,094.4 million current and $368.9 million long-term at September 30, 2026, compared to $1,035.1 million current and $349.4 million long-term at December 31, 2025.
- Total current liabilities were $1,381.2 million at September 30, 2026, compared to $1,333.1 million at December 31, 2025.
- Long-term senior notes were $1,785.9 million at September 30, 2026, compared to $1,788.2 million at December 31, 2025.
- Other long-term liabilities were $28.8 million at September 30, 2026, compared to $9.4 million at December 31, 2025.
- Total long-term liabilities were $2,183.6 million at September 30, 2026, compared to $2,147.0 million at December 31, 2025.
- Total liabilities were $3,564.8 million at September 30, 2026, compared to $3,480.1 million at December 31, 2025.
- Total stockholders’ deficit was $(2,284.7) million at September 30, 2026, compared to $(2,154.2) million at December 31, 2025.
- Outstanding shares were 89.8 million at September 30, 2026, compared to 91.9 million at December 31, 2025.
- Net cash provided by operating activities was $772.3 million for the nine months ended September 30, 2026, compared to $801.5 million for the nine months ended September 30, 2025.
- Depreciation of property and equipment was $19.8 million for the nine months ended September 30, 2026, compared to $24.5 million for the nine months ended September 30, 2025.
- Stock-based compensation expense was $58.8 million for the nine months ended September 30, 2026, compared to $51.8 million for the nine months ended September 30, 2025.
- Amortization of discount on investments in debt securities was $(5.3) million for the nine months ended September 30, 2026, compared to $(8.2) million for the nine months ended September 30, 2025.
- Other, net, was $10.2 million for the nine months ended September 30, 2026, compared to $2.4 million for the nine months ended September 30, 2025.
- Other assets were $(40.4) million for the nine months ended September 30, 2026, compared to $(3.2) million for the nine months ended September 30, 2025.
- Other liabilities were $(8.5) million for the nine months ended September 30, 2026, compared to $20.6 million for the nine months ended September 30, 2025.
- Deferred revenues were $78.9 million for the nine months ended September 30, 2026, compared to $80.1 million for the nine months ended September 30, 2025.
- Net deferred income taxes were $15.2 million for the nine months ended September 30, 2026, compared to $14.0 million for the nine months ended September 30, 2025.
- Proceeds from maturities and sales of marketable securities were $354.7 million for the nine months ended September 30, 2026, compared to $412.5 million for the nine months ended September 30, 2025.
- Purchases of marketable securities were $(346.3) million for the nine months ended September 30, 2026, compared to $(393.6) million for the nine months ended September 30, 2025.
- Purchases of property and equipment were $(33.6) million for the nine months ended September 30, 2026, compared to $(18.3) million for the nine months ended September 30, 2025.
- Other investing activities were $(7.7) million for the nine months ended September 30, 2026, compared to $0 for the nine months ended September 30, 2025.
- Net cash used in investing activities was $(32.9) million for the nine months ended September 30, 2026, compared to $0.6 million provided by investing activities for the nine months ended September 30, 2025.
- Repayment of borrowings was $(550.0) million for the nine months ended September 30, 2026, compared to $(500.0) million for the nine months ended September 30, 2025.
- Proceeds from senior note issuance, net of issuance costs, were $545.0 million for the nine months ended September 30, 2026, compared to $493.3 million for the nine months ended September 30, 2025.
- Proceeds from employee stock purchase plan were $12.7 million for the nine months ended September 30, 2026, compared to $12.3 million for the nine months ended September 30, 2025.
- Net cash used in financing activities was $(841.0) million for the nine months ended September 30, 2026, compared to $(777.3) million for the nine months ended September 30, 2025.
- Effect of exchange rate changes on cash, cash equivalents, and restricted cash was $0.5 million for the nine months ended September 30, 2026, compared to $0.1 million for the nine months ended September 30, 2025.
- Net decrease in cash, cash equivalents, and restricted cash was $(101.1) million for the nine months ended September 30, 2026, compared to a $24.9 million increase for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash at beginning of period was $309.5 million for the nine months ended September 30, 2026, compared to $212.1 million for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash at end of period was $208.4 million for the nine months ended September 30, 2026, compared to $237.0 million for the nine months ended September 30, 2025.
- Cash paid for interest was $49.9 million for the nine months ended September 30, 2026, compared to $55.4 million for the nine months ended September 30, 2025.
- Cash paid for income taxes, net of refunds received, was $195.5 million for the nine months ended September 30, 2026, compared to $169.3 million for the nine months ended September 30, 2025.
Analysis
Verisign reported third-quarter revenue of $443.0 million, up 5.7 percent from $419.1 million in the same quarter of 2025. Operating income was $296.5 million, compared with $284.3 million, while nine-month revenue and operating income were $1,306.5 million and $886.4 million, respectively. The company did not report a gross margin figure.
Demand indicators were favorable. The .com and .net domain name base ended the quarter at 182.5 million registrations, a 6.1 percent increase from the end of the third quarter of 2025, with a 3.36 million net increase during the quarter. New .com and .net registrations were 13.1 million, compared with 10.6 million in the prior-year quarter. The final renewal rate for the second quarter was 75.2 percent, compared with 75.5 percent a year earlier.
Profitability remained strong in dollar terms, but net income was $212.6 million versus $212.8 million a year earlier. The company recognized a $7.5 million pre-tax operating loss related to certain assets held for sale, which decreased diluted EPS by $0.06. Selling, general and administrative expense was $70.2 million versus $60.6 million, and interest expense was $21.2 million versus $18.9 million. Diluted EPS increased to $2.35 from $2.27 as diluted shares used to compute EPS declined to 90.4 million from 93.6 million.
Cash flow from operations was $268 million in the quarter, compared with $308 million in the prior-year quarter. For the first nine months, operating cash flow was $772.3 million compared with $801.5 million. Cash, cash equivalents and marketable securities totaled $476 million at the end of the quarter, while long-term senior notes were $1,785.9 million. Deferred revenues totaled $1.46 billion, an increase of $79 million from year-end 2025.
Capital allocation included $189 million of third-quarter share repurchases covering 0.7 million shares and a board-approved cash dividend of $0.81 per share, payable on November 24, 2026 to stockholders of record on November 17, 2026. The company had $1.36 billion remaining under its repurchase authorization as of September 30, 2026. No forward financial guidance was provided in the filing.
Management, verbatim
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.
Jim Bidzos, Executive Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Income tax rate was not reported.
- Segment revenue and segment profit were not reported.
- Non-GAAP financial metrics were not reported.
- Prior-quarter comparisons were not reported for the listed income-statement metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
VeriSign's Q3 2026 earnings release filed via SEC Form 8‑K provides the first public disclosure of the quarter's financial performance.
Ticker impact
VeriSign reported Q3 2026 results: revenue $443M (+5.7% YoY), EPS $2.35, share repurchase and dividend approval.
likely modest upside as market prices in the revenue beat and dividend announcement
The numbers are better than prior year and include a new dividend, but growth is modest; no major guidance change.
Market effects
Domain‑registry and internet‑infrastructure sector may see slight uplift from dividend and buyback signals.
U.S. tech‑focused investors may adjust positions in mid‑cap infrastructure stocks.
Limited; impact confined to VeriSign and peers in the domain‑name services space.
Counterpoint
The modest growth may not justify the dividend increase; investors could view the payout as a cash‑return rather than growth catalyst.
Key entities
- companyVeriSign Inc.
NASDAQ‑listed provider of domain name registry services.
