VeriSign's Strong Q3 Results and Dividends Might Change The Case For Investing In VRSN

• VeriSign reported third quarter earnings with sales of US$419.1 million and net income of US$212.8 million, surpassing results from the prior year, and declared a quarterly dividend of US$0.77 per share payable in late November 2025.

• The company continued its substantial share repurchase activity and saw improvement in new domain registrations and renewal rates, indicating strengthened demand for its core domain name services.

• With third quarter revenue and net income exceeding expectations, we’ll examine how this performance impacts the company’s long-term growth assumptions.

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To be a VeriSign shareholder, you typically need to believe that the company’s position as the official registry for key internet domains like .com and .net provides a durable advantage and stable revenue base. The most important catalyst remains ongoing growth in domain registrations and renewals, which has shown improvement in recent results; however, the biggest risk continues to be potential regulatory changes or new competition in top-level domains. The latest earnings report does not materially shift these dynamics for the short term.

Among recent company announcements, the ongoing share repurchase stands out, with over US$215 million spent in the third quarter to buy back 763,000 shares. This activity, aligned with returning capital to shareholders, remains relevant as it may affect per-share performance metrics, but does not directly influence the underlying demand for VeriSign’s core registry services.

In contrast, investors should be aware that the regulatory environment for domain operators may shift quickly and…

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VeriSign’s outlook anticipates $1.9 billion in revenue and $1.0 billion in earnings by 2028. This assumes a 6.4% annual revenue growth rate and a $200 million increase in earnings from the current $799.5 million.

Uncover how VeriSign’s forecasts yield a $304.00 fair value, a 27% upside to its current price.

Seven fair value estimates from the Simply Wall St Community span from US$211.76 up to US$340 per share. With such a wide range of opinions, consider how much recent improvements in new registration and renewal rates can influence expectations for continued revenue growth.

Explore 7 other fair value estimates on VeriSign – why the stock might be worth as much as 42% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include VRSN.

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