01—Abstract
Summary
Summary of the 10-Q filed October 22, 2026. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. reported third-quarter 2026 revenues of $443.0 milliona, up from $419.1 million a year earlier, and operating income of $296.5 million versus $284.3 million.
For the nine months ended September 30, 2026, revenues were $1,306.5 millionb and net income was $643.6 million, compared with $619.5 million in the prior-year period. The filing attributes the revenue growth primarily to a larger domain name base (182.5 million .com and .net registrations, up from 171.9 million a year earlier) and the .com price increases. Diluted EPS for the nine months was $7.06 versus $6.58.
Cash flow and capital return activity were significant in the period. Net cash provided by operating activities was $772.3 millionc for the nine months, compared with $801.5 million a year earlier. The company repurchased $620.0 million of common stock and paid $220.8 million in dividends during the nine months.
In July 2026, the Board authorized an additional $884.2 milliond for repurchases, bringing the total authorization to $1.50 billion, with $1.36 billion remaining as of September 30, 2026. A quarterly dividend of $0.81 per share was declared on October 19, 2026. Cash and marketable securities totaled $476.1 million, and the company had a stockholders' deficit of $2,284.7 million.
The filing also notes the July 2026 delegation of the .web gTLD, which was reclassified to intangible assets of $145.2 million, and a putative class action filed on September 4, 2026 in the U.S. District Court for the Central District of California, against Verisign and ICANN, alleging antitrust violations related to .com pricing. The company cannot reasonably estimate a range of possible losses from this matter.
02—Key points
Key Highlights
- Q3 2026 revenues rose to $443.0 million from $419.1 million, and operating income rose to $296.5 million from $284.3 million.
- Nine-month net income was $643.6 million, up from $619.5 million, and diluted EPS was $7.06 versus $6.58.
- .com and .net domain name base reached 182.5 million at September 30, 2026, up from 171.9 million a year earlier, with 13.1 million new registrations in Q3 2026 versus 10.6 million.
- The company repurchased $620.0 million of stock and paid $220.8 million in dividends over the nine months; total repurchase authorization is $1.50 billion, with $1.36 billion remaining.
- Operating cash flow for the nine months was $772.3 million, down from $801.5 million, while capital expenditures rose to $33.6 million from $18.3 million.
- The company issued $550.0 million of 5.10% senior notes due 2031 and redeemed $550.0 million of 4.75% 2017 notes in July 2026.
- A putative antitrust class action was filed on September 4, 2026 against Verisign and ICANN; the company cannot estimate a range of possible losses.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Verisign kept $0.48.
- Revenue$443.0M100.0%
- Cost of revenue−$49.8M11.2%
- Gross profit$393.2M88.8%
- Operating costs−$96.7M21.8%
- Operating income$296.5M66.9%
- Interest, other & tax−$83.9M18.9%
- Net income$212.6M48.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 22, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $443.00M$419.10M | +5.7% |
| Cost of Revenue | $49.80M$48.80M | +2.0% |
| Gross Profit | $393.20M$370.30M | +6.2% |
| R&D Expenses | $26.50M$25.40M | +4.3% |
| SG&A Expenses | $70.20M$60.60M | +15.8% |
| Operating Expenses | $146.50M$134.80M | +8.7% |
| Operating Income | $296.50M$284.30M | +4.3% |
| Interest Expense | $21.20M$18.90M | +12.2% |
| Net Income | $212.60M$212.80M | −0.1% |
| EPS (Basic) | $2.36$2.28 | +3.5% |
| EPS (Diluted) | $2.35$2.27 | +3.5% |
| Shares Outstanding (Basic) | 90.10M93.30M | −3.4% |
| Shares Outstanding (Diluted) | 90.40M93.60M | −3.4% |
05—Questions
Frequently Asked Questions
How did VeriSign's revenue and profitability trend in the third quarter of 2026?
Revenues were $443.0 million for the three months ended September 30, 2026, compared with $419.1 million a year earlier. Operating income was $296.5 million versus $284.3 million, and net income was $212.6 million versus $212.8 million, roughly flat. The filing attributes revenue growth to a larger domain name base and .com price increases.
How much is VeriSign returning to shareholders?
In the nine months ended September 30, 2026, the company repurchased $620.0 million of common stock and paid $220.8 million in dividends. In July 2026, the Board authorized an additional $884.2 million for repurchases, bringing the total authorization to $1.50 billion, with $1.36 billion remaining as of September 30, 2026. On October 19, 2026, a quarterly dividend of $0.81 per share was declared, payable November 24, 2026.
What is the status of the .web gTLD and the associated balance sheet change?
The .web gTLD was delegated into the DNS root zone in July 2026, with Verisign as registry operator. The $145.2 million of deposits to acquire intangible assets was reclassified to intangible assets, which total $171.4 million at September 30, 2026, after $26.2 million of additional capitalized acquisition costs. The intangible asset has an indefinite life and is tested annually for impairment.
What legal risks did the filing disclose?
On September 4, 2026, Jeff Kessler filed a putative class action against Verisign and ICANN in the U.S. District Court for the Central District of California, asserting federal and California antitrust and unfair competition claims related to the .com Registry Agreement and .com pricing. The company intends to vigorously defend the matter and cannot reasonably estimate a range of possible losses.
06—Continue