Verisign Posts Solid Q4 Growth but Misses Revenue Estimates; Dividend Hiked
VeriSign, Inc. (NASDAQ:VRSN), the global registry operator for the .com and .net domains, reported financial results for the fourth quarter and full year 2025. The company delivered growth in its core domain business and announced a dividend increase, but its quarterly revenue came in slightly below Wall Street expectations.
Quarterly Financial Performance vs. Estimates
The company's fourth-quarter results presented a mixed picture when held against analyst forecasts. While earnings per share were essentially in line with estimates, revenue fell short of the consensus target.
- Revenue: Verisign reported Q4 revenue of $425.3 million, a 7.5% increase year-over-year. However, this figure missed the analyst estimate of approximately $432.9 million.
- Earnings Per Share (EPS): Diluted EPS for the quarter was $2.23, up from $2.00 in the prior year. This result was just below the estimated $2.33 per share.
- Full-Year 2025: For the full year, revenue grew 6.4% to $1.66 billion, while diluted EPS increased to $8.81 from $8.00 in 2024.
Market Reaction and Shareholder Returns
The immediate market reaction to the earnings release appears muted, with the stock showing little change in after-hours trading. This neutral response likely reflects the balance between the slight revenue miss and the company's continued operational strength and commitment to returning capital to shareholders.
A key highlight from the report was the announcement of a 5.2% increase in the quarterly dividend to $0.81 per share. This move underscores management's confidence in the company's stable cash flow. Verisign also continued its aggressive share repurchase program, buying back 1.0 million shares for $251 million in Q4 and a total of 3.4 million shares for $859 million throughout 2025.
Core Business Highlights and Industry Context
The financial results were supported by steady growth in Verisign's fundamental domain name registry business. According to data from the company-sponsored DNIB.com, the overall internet domain industry closed 2025 with 386.9 million registrations, a 6.2% annual increase.
For Verisign specifically, the .com and .net domain base, which is the primary driver of its revenue, showed resilience:
- The domain name base ended Q4 at 173.5 million registrations, a 2.6% increase year-over-year.
- The company processed 10.7 million new domain name registrations in the quarter, up from 9.5 million a year ago.
- The renewal rate for .com and .net domains for Q3 2025 improved to 75.4%, compared to 72.2% in the same period of 2024.
Executive Chairman and CEO Jim Bidzos highlighted the company's operational record, stating, "In 2025, we extended our track record of providing 100 percent availability for .com and .net domain name resolution to 28 years, saw strong domain growth, and returned over $1.1 billion to our shareholders."
Looking Ahead
While the press release did not provide formal financial guidance for the coming year, analysts have already set expectations. The consensus estimates project Q1 2026 revenue of approximately $430.6 million and full-year 2026 sales of around $1.76 billion. Verisign's ability to meet or exceed these estimates will depend on continued growth in domain registrations and stable renewal rates in the coming quarters.
For a detailed breakdown of Verisign's historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
