VeriSign falls on third quarter earnings miss

Investing.com -- - VeriSign Inc (NASDAQ: VRSN)) reported third quarter results that missed analyst expectations on earnings despite beating revenue estimates, sending shares down 4.8% in after-hours trading Thursday.

The domain name registry services provider reported adjusted EPS of $2.35 for the third quarter, missing the analyst consensus of $2.46 by $0.11. Revenue came in at $443 million, slightly above the consensus estimate of $440.59 million and up 5.7% YoY from $419.1 million in the same quarter last year. The company recognized a pre-tax operating loss of $7.5 million related to certain assets held for sale, which decreased diluted EPS by $0.06.

The negative market reaction reflected investor disappointment over the earnings shortfall, despite the company's operational progress. VeriSign ended the quarter with 182.5 million .com and .net domain name registrations, representing a 6.1% increase YoY.

"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," said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.

Operating income for the quarter was $296 million, compared to $284 million in the third quarter of 2025. Net income totaled $213 million for the quarter. The company processed 13.1 million new domain name registrations for .com and .net during the quarter, compared with 10.6 million in the prior year period.

VeriSign repurchased 0.7 million shares for $189 million during the quarter. The company's Board of Directors approved a cash dividend of $0.81 per share, payable on November 24, 2026.

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