Upside case
Bull case
$410+48.8%
VRSN would need investors to value it at roughly 42x earnings — about 14x more generous than today's 28x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
VeriSign, Inc. (VRSN) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
14
analysts
8 bullish · 1 bearish · 14 covering VRSN
Strong Buy
0
Buy
8
Hold
5
Sell
1
Strong Sell
0
Consensus Target
$355
+28.7% vs today
Scenario Range
$272 – $410
Model bear to bull value window
Coverage
14
Published analyst ratings
Valuation Context
28.5x
Forward P/E · Market cap $25.3B
VRSN price targets
Three scenarios for where VRSN stock could go
Current
~$276
Confidence
73 / 100
Updated
May 1, 2026
Where we are now
Current · $276
Bear
$272
Base
$349
Bull
$410
Market caseClosest to today
Base case
$349+26.7%
At 36x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$272-1.3%
If investor confidence fades or macro conditions deteriorate, a 0x multiple contraction could push VRSN down roughly 1% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
VeriSign, Inc.
VRSN · NASDAQTechnologySoftware - InfrastructureDecember year-end
VeriSign operates as the exclusive registry for .com and .net domain names — managing the technical infrastructure that enables these domains to function globally. It generates revenue primarily from domain name registration fees — collecting an annual fee for each .com and .net domain registered worldwide. The company's key advantage is its government-granted monopoly on operating the .com and .net registries — a position secured through long-term contracts with ICANN that create an extremely stable, recurring revenue stream.
Market Cap
$25.3B
Revenue TTM
$1.7B
Net Income TTM
$841M
Net Margin
50.0%
VRSN Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.2%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$2.21/$2.20
Revenue
$410M/$411M
Q4 2025
EPS
$2.27/$2.25
Revenue
$419M/$417M
Q1 2026
EPS
$2.23/$2.35
Revenue
$425M/$424M
Q2 2026
EPS
$2.34/$2.30
Revenue
$429M/$424M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.21/$2.20 | +0.5% | $410M/$411M | -0.3% |
| Q4 2025 | $2.27/$2.25 | +0.9% | $419M/$417M | +0.6% |
| Q1 2026 | $2.23/$2.35 | -5.1% | $425M/$424M | +0.2% |
| Q2 2026 | $2.34/$2.30 | +1.7% | $429M/$424M | +1.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$1.8B
+5.5% YoY
FY2
$1.9B
+5.9% YoY
EPS Outlook
FY1
$10.08
+10.1% YoY
FY2
$11.16
+10.7% YoY
Trailing FCF (TTM)$1.0B
FCF Margin: 62.3%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
VRSN beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
VRSN Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $1.7B
Product Mix
Latest annual revenue by segment or product family
Segment breakdown not available for this company.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
66.0%
+5.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
UNITED STATES is the largest reported region at 66.0%, up 5.6% YoY.
VRSN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $231 — implies -15.1% from today's price.
Premium to Fair Value
15.1%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
VRSN
31.3x
vs
S&P 500
25.2x
+24% premium
vs Technology Trailing P/E
VRSN
31.3x
vs
Technology
27.5x
+14% premium
vs VRSN 5Y Avg P/E
Today
31.3x
vs
5Y Average
29.7x
+5% premium
Forward PE
28.5x
S&P 500
19.1x
+49%
Technology
21.7x
+31%
5Y Avg
—
—
Trailing PE
31.3x
S&P 500
25.2x
+24%
Technology
27.5x
+14%
5Y Avg
29.7x
+5%
PEG Ratio
6.96x
S&P 500
1.75x
+299%
Technology
1.47x
+375%
5Y Avg
—
—
EV/EBITDA
23.2x
S&P 500
15.3x
+52%
Technology
17.4x
+34%
5Y Avg
23.9x
-3%
Price/FCF
23.7x
S&P 500
21.3x
+11%
Technology
19.8x
+20%
5Y Avg
27.2x
-13%
Price/Sales
15.3x
S&P 500
3.1x
+387%
Technology
2.4x
+532%
5Y Avg
15.6x
-2%
Dividend Yield
0.84%
S&P 500
1.88%
-55%
Technology
1.18%
-28%
5Y Avg
0.96%
-12%
| Metric | VRSN | S&P 500 | Technology | 5Y Avg VRSN |
|---|---|---|---|---|
| Forward PE | 28.5x | 19.1x+49% | 21.7x+31% | — |
| Trailing PE | 31.3x | 25.2x+24% | 27.5x+14% | 29.7x |
| PEG Ratio | 6.96x | 1.75x+299% | 1.47x+375% | — |
| EV/EBITDA | 23.2x | 15.3x+52% | 17.4x+34% | 23.9x |
| Price/FCF | 23.7x | 21.3x+11% | 19.8x+20% | 27.2x-13% |
| Price/Sales | 15.3x | 3.1x+387% | 2.4x+532% | 15.6x |
| Dividend Yield | 0.84% | 1.88% | 1.18% | 0.96% |
VRSN trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolVRSN Financial Health
Verdict
Adequate
VRSN generates $1.0B in free cash flow at a 62.3% margin — returns 4.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$1.7B
Revenue Growth
TTM vs prior year
+6.8%
Gross Margin
Gross profit as a share of revenue
88.3%
Operating Margin
Operating income divided by revenue
67.9%
Net Margin
Net income divided by revenue
50.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$9.16
Free Cash Flow (TTM)
Cash generation after capex
$1.0B
FCF Margin
FCF as share of revenue — the primary cash quality signal
62.3%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
—
ROA
Return on assets, trailing twelve months
69.9%
Cash & Equivalents
Liquid assets on the balance sheet
$308M
Net Debt
Total debt minus cash
$1.5B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.4× FCF
~1.4 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
—
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.4%
Dividend
0.8%
Buyback
3.5%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$893M
Dividend / Share
Annualized trailing dividend per share
$2.32
Payout Ratio
Share of earnings distributed as dividends
26.1%
Shares Outstanding
Declining as buybacks retire shares
92M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageVRSN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Legal and Regulatory Risks
VeriSign's operations are heavily regulated by ICANN and the NTIA, with the renewal of its registry agreements for .com and .net occurring every six years. Changes in regulations or potential legal actions, including class action lawsuits, could adversely affect its business model and jeopardize its monopolies.
High Risk
Financial Strength
VeriSign has a low Financial Strength rating, indicating vulnerabilities in its balance sheet and limited financial flexibility during economic downturns. This could impact the company's ability to sustain operations and invest in growth.
High Risk
Dependence on Core Services
The company's long-term financial outlook is heavily reliant on the renewal of contracts for the .com and .net domain registries. A significant decline in demand for these domains could adversely affect revenue and profitability.
Medium
Management and Cultural Issues
Reports of management deficiencies and conflicting objectives may lead to legal and reputational exposure for VeriSign. Former employees have indicated a willingness to pursue litigation based on alleged questionable internal practices.
Medium
Valuation Concerns
VeriSign's stock has a relatively high price-to-earnings ratio, suggesting it may be overvalued. Some analyses indicate a fair value estimate of $165, reflecting significant legal risks that could impact stock performance.
Medium
Cybersecurity Threats
VeriSign faces extensive cybersecurity risks, including sophisticated cyber-attacks, DDoS events, and software vulnerabilities. These threats could disrupt operations and damage the company's reputation.
Lower
Technological Evolution
Evolving technologies and user behavior, such as the rise of AI and alternative namespaces, could reduce demand for traditional domain names. This shift may impact VeriSign's market position and revenue streams.
Lower
Insider Selling
Recent insider selling by executives may indicate a lack of confidence in the stock's short-term performance. This could raise concerns among investors regarding the company's future prospects.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why VRSN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Durable Market Position
VeriSign operates at the core of the internet's infrastructure, holding a near-monopoly for .com and .net TLDs. This position is seen as durable, supported by domain growth and pricing power, which translates to steady cash generation.
Financial Performance and Guidance
The company reported strong Q1 2026 results with increased revenue and net income. Furthermore, VeriSign raised its full-year 2026 guidance for revenue and operating income, signaling management's confidence in its core business.
Dividend Growth
VeriSign has increased its quarterly dividend to $0.81 per share, demonstrating a commitment to returning value to shareholders.
Analyst Sentiment
Analysts generally hold a positive view, with a consensus rating of 'Moderate Buy' and an average price target suggesting potential upside. Some analysts have even raised their forecasts following the strong Q1 results.
Technical Indicators
Some technical analyses suggest bullish momentum, with indicators pointing to potential upside and a breakout above key resistance levels.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
VRSN Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$275.76
52W Range Position
66%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$208.86
+32.0% from the low
52-Week High
$310.60
-11.2% from the high
1 Month
+0.46%
3 Month
+23.01%
YTD
+14.6%
1 Year
-2.6%
3Y CAGR
+7.8%
5Y CAGR
+4.3%
10Y CAGR
+12.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
VRSN vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
28.5x
vs 17.8x median
+60% above peer median
Revenue Growth
+5.5%
vs +6.1% median
-11% below peer median
Net Margin
50.0%
vs 17.3% median
+188% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
VRS VRSN VeriSign, Inc. | $25.3B | 28.5x | +5.5% | 50.0% | Buy | +28.7% |
GDD GDDY GoDaddy Inc. | $11.4B | 12.2x | +6.6% | 17.3% | Buy | +33.0% |
AKA AKAM Akamai Technologies, Inc. | $18.3B | 17.8x | +5.7% | 10.7% | Hold | -8.9% |
NTC NTCT NetScout Systems, Inc. | $2.6B | 14.7x | -1.1% | 11.1% | Hold | -18.4% |
DSG DSGX The Descartes Systems Group Inc. | $6.1B | 38.2x | +12.9% | 22.5% | Buy | +45.4% |
FFI FFIV F5, Inc. | $19.3B | 20.7x | +6.1% | 22.0% | Hold | -8.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
VRSN Dividend and Capital Return
VRSN returns capital mainly through $893M/year in buybacks (3.5% buyback yield), with a modest 0.84% dividend — combining for 4.4% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
4.4%
Dividend + buyback return per year
Buyback Yield
3.5%
Dividend Yield
0.84%
Payout Ratio
26.1%
How VRSN Splits Its Return
Div 0.84%
Buyback 3.5%
Dividend 0.84%Buybacks 3.5%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.32
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$893M
Estimated Shares Retired
3M
Approx. Share Reduction
3.5%
Shares Outstanding
Current diluted share count from the screening snapshot
92M
At 3.5%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.62 | — | — | — |
| 2025 | $2.31 | — | 4.0% | 4.9% |
| 2011 | $2.75 | -8.3% | 9.2% | 17.0% |
| 2010 | $3.00 | — | 7.7% | 16.6% |
FAQ
7 questionsVRSN Investor Questions
Common questions answered from live analyst data and company financials.
01Is VeriSign, Inc. (VRSN) stock a buy or sell in 2026?
VeriSign, Inc. (VRSN) is rated Buy by Wall Street analysts as of 2026. Of 14 analysts covering the stock, 8 rate it Buy or Strong Buy, 5 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $355, implying +28.7% from the current price of $276. The bear case scenario is $272 and the bull case is $410.
02What is the VRSN stock price target for 2026?
The Wall Street consensus price target for VRSN is $355 based on 14 analyst estimates. The high-end target is $355 (+28.7% from today), and the low-end target is $355 (+28.7%). The base case model target is $349.
03Is VeriSign, Inc. (VRSN) stock overvalued in 2026?
VRSN trades at 28.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for VeriSign, Inc. (VRSN) stock in 2026?
The primary risks for VRSN in 2026 are: (1) Legal and Regulatory Risks — VeriSign's operations are heavily regulated by ICANN and the NTIA, with the renewal of its registry agreements for . (2) Financial Strength — VeriSign has a low Financial Strength rating, indicating vulnerabilities in its balance sheet and limited financial flexibility during economic downturns. (3) Dependence on Core Services — The company's long-term financial outlook is heavily reliant on the renewal of contracts for the . Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is VeriSign, Inc.'s revenue and earnings forecast?
Analyst consensus estimates VRSN will report consensus revenue of $1.8B (+5.5% year-over-year) and EPS of $10.08 (+10.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $1.9B in revenue.
06When does VeriSign, Inc. (VRSN) report its next earnings?
A confirmed upcoming earnings date for VRSN is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does VeriSign, Inc. generate?
VeriSign, Inc. (VRSN) generated $1.0B in free cash flow over the trailing twelve months — a free cash flow margin of 62.3%. VRSN returns capital to shareholders through dividends (0.8% yield) and share repurchases ($893M TTM).