Company Reports

VeriSign is the exclusive registry operator and wholesaler of the .com and .net top-level domains. The firm earns revenue by collecting an annual “tax” on every renewing and new .com and .net domain, with growth driven primarily by price increases.

VeriSign is the government-sanctioned registry operator and exclusive wholesaler of the .com and .net top-level domains. The firm collects an annual “tax” for each domain under management from registrars, who sell domain registrations at retail prices to end-users.

Verisign plays a critical role atop the domain name system, or DNS, that allows computers to convert human readable websites into IP addresses. The company is responsible for maintaining the root zone and two of the root zone servers (A and J) that represent a network of servers that help direct DNS resolvers to the appropriate registry for IP address discovery. Verisign generates revenue through its registry services as the exclusive operator of the .com and .net registries. Verisign is able to charge annual fees for every domain that registers or renews as a .com or .net.

Verisign delivered accelerating domain-based growth and the long-awaited resolution of the .web top-level domain, or TLD, dispute. The company raised its full-year guidance for the second time this year.

Verisign reported strong first-quarter earnings, characterized by record domain registrations and an encouraging upward revision to its full-year 2026 outlook.

Verisign plays a critical role atop the domain name system, or DNS, that allows computers to convert human readable websites into IP addresses. The company is responsible for maintaining the root zone and two of the root zone servers (A and J) that represent a network of servers that help direct DNS resolvers to the appropriate registry for IP address discovery. Verisign generates revenue through its registry services as the exclusive operator of the .com and .net registries. Verisign is able to charge annual fees for every domain that registers or renews as a .com or .net.

Verisign reported decent fourth-quarter earnings. The 2026 outlook was a bit light on the operating margin, calling for a 67.8% operating margin in the middle of the range, while we were looking for a bit more.

Verisign plays a critical role atop the domain name system, or DNS, that allows computers to convert human readable websites into IP addresses. The company is responsible for maintaining the root zone and two of the root zone servers (A and J) that represent a network of servers that help direct DNS resolvers to the appropriate registry for IP address discovery. Verisign generates revenue through its registry services as the exclusive operator of the .com and .net registries. Verisign is able to charge annual fees for every domain that registers or renews as a .com or .net.

Verisign plays a critical role atop the domain name system, or DNS, that allows computers to convert human readable websites into IP addresses. The company is responsible for maintaining the root zone and two of the root zone servers (A and J) that represent a network of servers that help direct DNS resolvers to the appropriate registry for IP address discovery. Verisign generates revenue through its registry services as the exclusive operator of the .com and .net registries. Verisign is able to charge annual fees for every domain that registers or renews as a .com or .net.

Verisign is a provider of critical domain name system, or DNS, infrastructure. As the domain registry for the popular .com and .net top level domains, or TLDs, Verisign operates as one of the first layers in the DNS tech stack helping direct internet traffic to the correct IP address.

Verisign plays a critical role atop the domain name system, or DNS, that allows computers to convert human readable websites into IP addresses. The company is responsible for maintaining the root zone and two of the root zone servers (A and J) that represent a network of servers that help direct DNS resolvers to the appropriate registry for IP address discovery. Verisign generates revenue through its registry services as the exclusive operator of the .com and .net registries. Verisign is able to charge annual fees for every domain that registers or renews as a .com or .net.

VeriSign provides registry services for several top-level domains, or TLDs, which are essential to the basic functioning of the internet. VeriSign plays a vital role in supporting the Domain Name System, or DNS, which is akin to a massive address book that matches human friendly domain names to the accompanying numbers-based Internet Protocol, or IP, address. This allows an end user to browse the internet and access requested content via a network of interconnected servers. The company operates software and infrastructure globally to support the translation of domain names to IP addresses for its assigned domains, including managing zone files and registration and policies for the specified domain. VeriSign also provides root zone maintenance services, operates two of the world’s 13 roots servers that are foundational to the DNS, and manages a shared registration system that allows registrars to query the availability of and manage second level domains.

Verisign reported third-quarter earnings characterized by revenue growth of 7.3% year over year and operating margins of 67.8%, a 110-basis-point decline year over year. Top-line performance was driven by increased volume and pricing. Margins were affected by greater legal and compensation costs.

VeriSign reported second-quarter earnings, with revenue up 5.9% year over year to $410 million due to growing renewal rates and solid domain base expansion. Operating margin declined 30 basis points to 68.5% due to higher marketing investments.

VeriSign provides registry services for several top-level domains, or TLDs, which are essential to the basic functioning of the internet. VeriSign plays a vital role in supporting the Domain Name System, or DNS, which is akin to a massive address book that matches human friendly domain names to the accompanying numbers-based Internet Protocol, or IP, address. This allows an end user to browse the internet and access requested content via a network of interconnected servers. The company operates software and infrastructure globally to support the translation of domain names to IP addresses for its assigned domains, including managing zone files and registration and policies for the specified domain. VeriSign also provides root zone maintenance services, operates two of the world’s 13 roots servers that are foundational to the DNS, and manages a shared registration system that allows registrars to query the availability of and manage second level domains.

VeriSign provides registry services for several top-level domains, or TLDs, which are essential to the basic functioning of the internet. VeriSign plays a vital role in supporting the Domain Name System, or DNS, which is akin to a massive address book that matches human friendly domain names to the accompanying numbers-based Internet Protocol, or IP, address. This allows an end user to browse the internet and access requested content via a network of interconnected servers. The company operates software and infrastructure globally to support the translation of domain names to IP addresses for its assigned domains, including managing zone files and registration and policies for the specified domain. VeriSign also provides root zone maintenance services, operates two of the world’s 13 roots servers that are foundational to the DNS, and manages a shared registration system that allows registrars to query the availability of and manage second level domains.

We have raised our fair value estimate for VeriSign to $217 from $210, following a solid first-quarter 2025 earnings report and an upward revision of full-year guidance by the wide-moat firm. Quarterly revenue and profitability were in line with FactSet consensus expectations. This performance was driven by modest domain base expansion and improved renewal rates. Encouraged by these trends, management raised guidance for the fiscal year to revenue of $1.635 billion to $1.650 billion (previously $1.615 billion to $1.635 billion), and operating income between $1.110 billion and $1.125 billion. We view this increase positively and believe VeriSign’s resilient business model will help it weather ongoing macroeconomic headwinds. Additionally, the firm also declared its first-ever quarterly dividend of $0.77. Our valuation model has been updated accordingly. We view the shares as slightly overvalued.

We increase our fair value estimate to $210 per share, from $195 previously, as wide-moat VeriSign reported decent fourth-quarter earnings. Results met FactSet consensus expectations for the quarter, and 2025 guidance also fell in line with expectations. Results and guidance contribute to modest model adjustments. The .com and .net base remains hindered by soft demand in China and ongoing weakness from US registrars. Management expects this headwind to begin to dissipate in 2025, with domain base growth expected to only decline negative 2.3% to negative 0.3%, versus negative 2.1% in 2024. We still expect a turn around in domain base growth and price increases to help revenue growth reaccelerate by 2027. VeriSign renewed its agreements with ICANN and the NTIA, for six years each, which we expected. We view shares as fairly valued.

Verisign provides registry services for several top-level domains, or TLDs, which are essential to the basic functioning of the internet. Verisign plays a vital role in supporting the Domain Name System, or DNS, which is akin to a massive address book that matches human friendly domain names to the accompanying numbers-based Internet Protocol, or IP, address. This allows an end user to browse the internet and access requested content via a network of interconnected servers. The company operates software and infrastructure globally to support the translation of domain names to IP addresses for its assigned domains, including managing zone files and registration and policies for the specified domain. Verisign also provides root zone maintenance services, operates two of the world’s 13 roots servers that are foundational to the DNS, and manages a shared registration system that allows registrars to query the availability of and manage second level domains.

Verisign provides registry services for several top-level domains, or TLDs, which are essential to the basic functioning of the internet. Verisign plays a vital role in supporting the Domain Name System, or DNS, which is akin to a massive address book that matches human friendly domain names to the accompanying numbers-based Internet Protocol, or IP, address. This allows an end user to browse the internet and access requested content via a network of interconnected servers. The company operates software and infrastructure globally to support the translation of domain names to IP addresses for its assigned domains, including managing zone files and registration and policies for the specified domain. Verisign also provides root zone maintenance services, operates two of the world’s 13 roots servers that are foundational to the DNS, and manages a shared registration system that allows registrars to query the availability of and manage second level domains.