Verisign Q2 revenue slightly beats estimates as domain name registrations grew

Overview

• U.S. domain registry's Q2 revenue rose 6% yr/yr, slightly beating analyst expectations

• Diluted EPS for Q2 increased to $2.38 from $2.21 a year earlier

• Company authorized additional $884 mln for share repurchases, total buyback authorization now $1.5 bln

Outlook

• Verisign is raising its guidance for full-year 2026

• Company expects to offer .web domains through its registrar channel later in 2026

• Company sees continued strength in new domain name registrations

Result Drivers

• .COM AND .NET GROWTH - 5.1% yr/yr increase in .com and .net domain name registrations drove revenue growth

• NEW REGISTRATIONS - 12.7 mln new .com and .net registrations in Q2, up from 10.4 mln a year earlier

• HIGH RENEWAL RATE - .com and .net renewal rate rose to 76.3% from 75.5% a year earlier

Company press release: ID:nBw7mRW5Ga

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services consulting peer group is "buy"

• Wall Street's median 12-month price target for VeriSign, Inc is $319.00, about 21.5% above its July 22 closing price of $262.59

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

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• July 23 - Nasdaq tops profit estimates on high-profile listings, robust data revenue

• July 22 - WEX Q2 revenue rises, lifts 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)