A Business at a Glance
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VERISIGN INC/CA
VRSN
$26.2B
Mkt Cap
$280.00
+7.04%
VERISIGN INC/CA (VRSN) has a current P/E ratio of 31.8, compared to its historical median P/E of 30.4. The stock is currently considered Fair based on its historical valuation range.
VERISIGN INC/CA (VRSN) has a 5-year average return on invested capital (ROIC) of 49.6%. This indicates strong capital allocation and a potential competitive advantage.
VERISIGN INC/CA (VRSN) has a market capitalization of $25.5B. It is classified as a large-cap stock.
Yes, VERISIGN INC/CA (VRSN) pays a dividend with a trailing twelve-month yield of 1.13%. The company also returns capital through share buybacks, with a buyback yield of 3.39%.
Based on historical P/E analysis, VERISIGN INC/CA (VRSN) appears fair. The current P/E of 31.8 is 4% above its historical median of 30.4. The estimated fair value CAGR (P/E method) is 7.3%.
VERISIGN INC/CA (VRSN) operates in the Services-Computer Programming Services industry, within the Technology sector.
VERISIGN INC/CA (VRSN) reported annual revenue of $1.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
VeriSign is a global provider of critical internet infrastructure and domain name registry services that operates the authoritative directories for .com, .net, .name, and .cc top-level domains, as well as internationalized domain name variants, and provides back-end technical services for the .edu domain. The company earns revenue primarily through domain name registration and renewal fees collected from registrars, with .com and .net representing the majority of global e-commerce domain registrations; pricing for .com, .net, and .name is subject to ICANN agreement restrictions, while .cc and IDN gTLDs operate under less restrictive pricing models. VeriSign operates a highly distributed, asset-intensive infrastructure consisting of secure data centers in multiple U.S. locations and over 200 global points of presence, processing hundreds of billions of DNS transactions daily with continuous uptime and redundancy to ensure security, stability, and resiliency of the Domain Name System. The company also performs the Root Zone Maintainer function and operates two of the thirteen global internet root servers, providing critical DNS infrastructure that enables internet navigation and security. VeriSign's competitive moat derives from its control of the .com and .net registries—which support the majority of global e-commerce—combined with its proprietary infrastructure, 28-year track record of uninterrupted service, and regulatory agreements with ICANN and the U.S. Department of Commerce, though it faces competition from other gTLD and ccTLD registries and alternative online identity platforms. The company serves registrars, domain registrants, and internet users globally, with marketing and account management presence in multiple countries.
【Domain growth accelerating, pricing power evident】 Management expects continued strength in domain name base growth, with 2026 guidance increased to 3.1–4.3% reflecting positive trends observed through early 2026 and expectations for the remainder of the year. The company has announced a $0.71 wholesale price increase for .com domain names effective November 1, 2026, raising the annual price from $10.26 to $10.97, and management believes .com will remain competitive despite the increase. Renewal rates have improved materially, with Q1 2026 expected at 76.3% compared to 75.5% a year prior, and management expects continued solid renewal rates through 2026, though acknowledges that higher proportions of first-time renewing names in the second half of 2026 may present a challenge. The company continues to invest in marketing programs and channel initiatives targeting specific use cases and retention improvements, with initial registrar response to 2026 programs described as positive. Capital expenditures are expected to increase modestly in 2026 due to end-of-life equipment replacement and planned capacity expansion, with costs elevated by AI-driven supply constraints.
| Metric | Target | Period |
|---|---|---|
| Domain name base growth | 3.1% to 4.3% | FY2026 |
| Revenue | $1.730 billion to $1.745 billion | FY2026 |
| Operating income | $1.170 billion to $1.185 billion | FY2026 |
| Interest expense and non-operating income net | $57 million to $67 million expense | FY2026 |
| Capital expenditures | $55 million to $65 million | FY2026 |
| GAAP effective tax rate | 22% to 25% | FY2026 |
| .com wholesale price increase | $0.71 increase (from $10.26 to $10.97) | Effective November 1, 2026 |
Domain name base growth (FY2026): “With the trends we've observed thus far in 2026 and our expectations for the next three quarters, we are increasing and narrowing our guidance for domain name base growth to be between 3.1% and 4.3% for 2026.”
Revenue (FY2026): “Revenue is now expected to be between $1.730 billion and $1.745 billion.”
Operating income (FY2026): “Operating income is now expected to be between $1.170 billion and $1.185 billion.”
Interest expense and non-operating income net (FY2026): “Interest expense and non-operating income net, which includes interest income estimates, is still expected to be an expense of between $57 million and $67 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.7B | 1.6B | 1.5B | 1.4B | 1.3B |
| Net Income | 841M | 826M | 786M | 818M | 674M | 785M |
| EPS | $9.10 | $8.81 | $8.00 | $7.90 | $6.24 | $7.00 |
| Free Cash Flow | 1.0B | 1.1B | 875M | 808M | 804M | 754M |
| ROIC | 68.0% | 63.4% | 51.6% | 48.1% | 38.8% | 46.2% |
| Gross Margin | - | 88.2% | 87.7% | 86.8% | 85.9% | 85.5% |
| Debt/Equity | 0.00 | -0.93 | -0.87 | -1.26 | -1.28 | -0.16 |
| Dividends/Share | $3.18 | $2.31 | $0.00 | $0.00 | - | - |
| Operating Income | 1.1B | 1.1B | 1.1B | 1.0B | 943M | 867M |
| Operating Margin | 67.9% | 67.7% | 67.9% | 67.0% | 66.2% | 65.3% |
| ROE | 0.0% | -40.2% | -44.4% | -52.0% | -47.7% | -59.2% |
| Shares Outstanding | 91M | 94M | 98M | 103M | 108M | 112M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.0B | 1.1B | 1.1B | 1.2B | 1.2B | 1.2B | 1.3B | 1.3B | 1.4B | 1.5B | 1.6B | 1.7B | 1.7B |
| Gross Margin | 79.0% | 78.1% | 82.6% | 83.4% | 84.2% | 85.3% | 85.8% | 85.5% | 85.9% | 86.8% | 87.7% | 88.2% | N/A |
| R&D | 68M | 64M | 59M | 52M | 58M | 61M | 75M | 81M | 86M | 91M | 97M | 104M | 105M |
| SG&A | 97M | 107M | 118M | 130M | 133M | 138M | 186M | 188M | 195M | 204M | 211M | 236M | 239M |
| EBIT | 564M | 606M | 687M | 708M | 767M | 806M | 824M | 867M | 943M | 1.0B | 1.1B | 1.1B | 1.1B |
| Op. Margin | 55.9% | 57.2% | 60.1% | 60.7% | 63.2% | 65.5% | 65.1% | 65.3% | 66.2% | 67.0% | 67.9% | 67.7% | 67.9% |
| Net Income | 355M | 375M | 441M | 457M | 582M | 612M | 815M | 785M | 674M | 818M | 786M | 826M | 841M |
| Net Margin | 35.2% | 35.4% | 38.6% | 39.2% | 47.9% | 49.7% | 64.4% | 59.1% | 47.3% | 54.8% | 50.4% | 49.8% | 50.0% |
| Non-Recurring | -5K | 0 | 0 | 10M | 55M | 817K | 6.4M | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 14.8% | 17.1% | 17.6% | 16.1% | 20.6% | 34.5% | 45.5% | 46.2% | 38.8% | 48.1% | 51.6% | 63.4% | 68.0% |
| ROE | -54.4% | -38.4% | -38.8% | -37.2% | -44.0% | -42.6% | -56.6% | -59.2% | -47.7% | -52.0% | -44.4% | -40.2% | 0.0% |
| ROA | 15.6% | 17.6% | 18.8% | 17.3% | 24.0% | 32.5% | 45.0% | 41.8% | 36.3% | 47.0% | 49.8% | 60.4% | 64.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 601M | 670M | 693M | 703M | 698M | 754M | 730M | 807M | 831M | 854M | 903M | 1.1B | 1.1B |
| Free Cash Flow | 562M | 629M | 666M | 653M | 661M | 714M | 687M | 754M | 804M | 808M | 875M | 1.1B | 1.0B |
| Owner Earnings | 493M | 562M | 585M | 600M | 597M | 657M | 636M | 706M | 726M | 750M | 805M | 990M | 461M |
| CapEx | 39M | 41M | 27M | 49M | 37M | 40M | 43M | 53M | 27M | 46M | 28M | 23M | 24M |
| Maint. CapEx | 64M | 61M | 58M | 50M | 48M | 46M | 46M | 48M | 47M | 44M | 37M | 31M | 540M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.1M | 0 | 1.7M | 0 | 0 | 0 |
| D&A | 64M | 61M | 58M | 50M | 48M | 46M | 46M | 48M | 47M | 44M | 37M | 31M | 540M |
| CapEx/OCF | 6.5% | 6.2% | 3.8% | 7.0% | 5.3% | 5.3% | 5.9% | 6.6% | 3.3% | 5.4% | 3.1% | 2.1% | 2.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 215M | 289M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.9% | 1.1% |
| Share Buybacks | 883M | 643M | 662M | 621M | 638M | 783M | 778M | 723M | 1.0B | 901M | 1.2B | 882M | 865M |
| Buyback Yield | 10.8% | 5.6% | 6.8% | 4.4% | 3.6% | 3.4% | 3.2% | 2.6% | 4.9% | 4.3% | 6.2% | 3.8% | 3.4% |
| Stock-Based Comp | 44M | 46M | 50M | 53M | 53M | 51M | 48M | 53M | 59M | 60M | 61M | 70M | 71M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 750M | 0 | 0 | 0 | 500M | 500M |
| Balance Sheet | |||||||||||||
| Net Debt | -804M | -789M | -968M | -1.0B | -425M | -1.0B | -962M | -1.0B | 1.0B | 1.1B | 1.1B | 1.4B | 1.2B |
| Cash & Equiv. | 192M | 229M | 232M | 466M | 357M | 508M | 401M | 224M | 374M | 240M | 207M | 308M | 556M |
| Long-Term Debt | 0 | 492M | 0 | 543M | 0 | 0 | N/A | N/A | 1.8B | 1.8B | 1.5B | 1.8B | 1.8B |
| Debt/Equity | -0.70 | -1.05 | -0.69 | -1.09 | -0.61 | -0.14 | -0.15 | -0.16 | -1.28 | -1.26 | -0.87 | -0.93 | 0.00 |
| Interest Coverage | 6.6 | 5.6 | 5.9 | 5.2 | 6.7 | 8.9 | 9.1 | 10.4 | 12.5 | 13.3 | 14.1 | 14.6 | 15.1 |
| Equity | -883M | -1.1B | -1.2B | -1.3B | -1.4B | -1.5B | -1.4B | -1.3B | -1.6B | -1.6B | -2.0B | -2.2B | -2.2B |
| Total Assets | 1.9B | 2.4B | 2.3B | 2.9B | 1.9B | 1.9B | 1.8B | 2.0B | 1.7B | 1.7B | 1.4B | 1.3B | 1.3B |
| Total Liabilities | 2.8B | 3.4B | 3.5B | 4.2B | 3.3B | 3.3B | 3.2B | 3.2B | 3.3B | 3.3B | 3.4B | 3.5B | 3.5B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -19.0B | -18.6B | -18.2B | -17.7B | -17.1B | -16.5B | -15.7B | -14.9B | -14.2B | -13.4B | -12.6B | -11.8B | -11.6B |
| Working Capital | 48M | 465M | 320M | 886M | 369M | 313M | 229M | 195M | -78M | -200M | -867M | -681M | -729M |
| Current Assets | 1.5B | 2.0B | 1.8B | 2.4B | 1.3B | 1.3B | 1.2B | 1.3B | 1.0B | 988M | 664M | 653M | 626M |
| Current Liabilities | 1.4B | 1.5B | 1.5B | 1.6B | 948M | 965M | 989M | 1.1B | 1.1B | 1.2B | 1.5B | 1.3B | 1.4B |
| Per Share Data | |||||||||||||
| EPS | 2.52 | 2.82 | 3.42 | 3.68 | 4.75 | 5.15 | 7.07 | 7.00 | 6.24 | 7.90 | 8.00 | 8.81 | 9.10 |
| Owner EPS | 3.50 | 4.23 | 4.54 | 4.83 | 4.87 | 5.53 | 5.51 | 6.30 | 6.72 | 7.25 | 8.19 | 10.57 | 5.06 |
| Book Value | -6.27 | -8.04 | -9.32 | -10.14 | -11.30 | -12.53 | -12.06 | -11.24 | -14.47 | -15.28 | -19.94 | -22.98 | -24.30 |
| Cash Flow/Share | 4.26 | 5.03 | 5.38 | 5.66 | 5.69 | 6.34 | 6.34 | 7.20 | 7.70 | 8.25 | 9.19 | 11.64 | 15.15 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.00 | 2.31 | 3.18 |
| Shares Out. | 141.0M | 133.1M | 128.8M | 124.3M | 122.6M | 118.9M | 115.3M | 112.1M | 108.0M | 103.5M | 98.2M | 93.7M | 91.1M |
| Valuation | |||||||||||||
| P/E Ratio | 23.0 | 30.8 | 22.2 | 31.0 | 30.5 | 37.2 | 30.3 | 35.6 | 31.8 | 25.8 | 25.2 | 27.9 | 30.8 |
| P/FCF | 14.5 | 18.4 | 14.7 | 21.7 | 26.9 | 31.9 | 35.9 | 37.1 | 26.7 | 26.1 | 22.6 | 21.5 | 24.3 |
| EV/EBIT | 15.4 | 20.0 | 15.3 | 20.9 | 23.9 | 29.0 | 30.7 | 32.9 | 23.6 | 21.9 | 19.8 | 21.6 | 23.4 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 7.5 | 8.6 | 9.1 | 10.1 | 13.6 | 18.1 | 18.3 | 18.0 | 14.6 | 14.4 | 11.6 | 14.4 | 15.2 |
| FCF Yield | 6.9% | 5.4% | 6.8% | 4.6% | 3.7% | 3.1% | 2.8% | 2.7% | 3.7% | 3.8% | 4.4% | 4.6% | 4.1% |
| Market Cap | 8.2B | 11.6B | 9.8B | 14.2B | 17.8B | 22.8B | 24.7B | 28.0B | 21.5B | 21.1B | 19.8B | 23.0B | 25.5B |
| Avg. Price | 53.88 | 68.09 | 80.92 | 94.98 | 135.04 | 187.83 | 201.15 | 213.24 | 192.91 | 207.94 | 183.38 | 254.93 | 280.00 |
| Year-End Price | 57.86 | 86.81 | 76.04 | 114.08 | 145.07 | 191.66 | 214.13 | 249.30 | 198.65 | 203.74 | 201.44 | 245.41 | 280.00 |
VERISIGN INC/CA passes 5 of 9 quality checks, suggesting mixed fundamentals.
VERISIGN INC/CA trades at 31.8x trailing earnings, compared to its 15-year median P/E of 30.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 24.0x vs a median of 26.4x. The company's 5-year average ROIC is 49.6% with a gross margin of 86.8%. Total shareholder yield (dividends + buybacks) is 4.5%. At current prices, the estimated annualized return to fair value is +9.4%.
VERISIGN INC/CA (VRSN) has a net profit margin of 49.8%. This is a strong margin indicating high profitability.
VERISIGN INC/CA (VRSN) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
VERISIGN INC/CA (VRSN) reported earnings per share (EPS) of $8.81 in its most recent fiscal year.
VERISIGN INC/CA (VRSN) has a return on equity (ROE) of -40.2%. A negative ROE may indicate losses or negative equity.
VERISIGN INC/CA (VRSN) has a 5-year average gross margin of 86.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for VERISIGN INC/CA (VRSN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
VERISIGN INC/CA (VRSN) has a book value per share of $-22.98, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strength in domain name base growth, with 2026 guidance increased to 3.1–4.3% reflecting positive trends observed through early 2026 and expectations for the remainder of the year. The company has announced a $0.71 wholesale price increase for .com domain names effective November 1, 2026, raising the annual price from $10.26 to $10.97, and management believes .com will remain competitive despite the increase. Renewal rates have improved materially, with Q1 2026 expected at 76.3% compared to 75.5% a year prior, and management expects continued solid renewal rates through 2026, though acknowledges that higher proportions of first-time renewing names in the second half of 2026 may present a challenge. The company continues to invest in marketing programs and channel initiatives targeting specific use cases and retention improvements, with initial registrar response to 2026 programs described as positive. Capital expenditures are expected to increase modestly in 2026 due to end-of-life equipment replacement and planned capacity expansion, with costs elevated by AI-driven supply constraints.
Based on recent SEC filings and earnings calls, VERISIGN INC/CA (VRSN) has provided the following forward guidance: Domain name base growth: 3.1% to 4.3% (FY2026); Revenue: $1.730 billion to $1.745 billion (FY2026); Operating income: $1.170 billion to $1.185 billion (FY2026); Interest expense and non-operating income net: $57 million to $67 million expense (FY2026); Capital expenditures: $55 million to $65 million (FY2026), plus 2 additional metrics.
Capital expenditures (FY2026): “Capital expenditures are still expected to be between $55 million and $65 million, which includes some modest structural improvement projects at our HQ facility.”
GAAP effective tax rate (FY2026): “The GAAP effective tax rate is still expected to be between 22% and 25%.”
.com wholesale price increase (Effective November 1, 2026): “As announced in today's earnings release, we have given notice of a price increase of $0.71 to the annual wholesale price for .com domain names, which raises the wholesale price from $10.26 to $10.97, effective November 1st, 2026.”
No recent press releases.