Verisign Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 23 July 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 6.0 percent: Revenue was $435 million, up 6.0 percent from the second quarter of 2025. Six-month revenue was $863.5 million, against $812.2 million a year earlier. Source
• Operating income rose to $296 million: Operating income was $296 million, compared with $281 million in the same quarter of 2025. Source
• Domain base reached 179.1 million: The .com and .net domain name base ended the quarter at 179.1 million, up 5.1 percent from a year earlier, after a net increase of 3.05 million in the quarter. Source
• New registrations rose to 12.7 million: Verisign processed 12.7 million new .com and .net registrations in the quarter, compared with 10.4 million in the second quarter of 2025. Source
• Operating cash flow rose to $232 million: Cash flow from operations was $232 million, against $202 million a year earlier. Six-month operating cash flow was $504.0 million, against $493.8 million. Source
• Repurchased $197 million of stock: The company repurchased 0.7 million shares for $197 million in the second quarter. Source
• .web TLD delegated into root zone: The .web top-level domain was delegated into the DNS root zone, with Verisign as the designated registry operator, as announced in a news release the day before. Source

“We delivered solid financial results in the quarter, returning more than 100% of our free cash flow to the investing public through dividends and share repurchases, which we do consistently.”

Jim Bidzos, Executive Chairman, President and Chief Executive Officer

What changed from last quarter

• Guidance raised: Full-year 2026 guidance raised, according to management. No figures given. Source
• New: The .web top-level domain was delegated into the DNS root zone, with Verisign as registry operator. Source
• New: Issued $550 million of 5.10% Senior Notes due 2031 and redeemed the 4.75% Senior Notes due 2027. Source
• New: Board approved about $884 million of additional share repurchase authorization. Source

Results and growth drivers

• Revenue rose 6.0 percent: Revenue was $435 million, up 6.0 percent from the second quarter of 2025. Six-month revenue was $863.5 million, against $812.2 million a year earlier. Source
• Operating income rose to $296 million: Operating income was $296 million, compared with $281 million in the same quarter of 2025. Source
• Net income and diluted EPS increased: Net income was $217 million and diluted EPS was $2.38, compared with $207 million and $2.21 a year earlier. Six-month diluted EPS was $4.71. Source

Registrations and renewals

• Domain base reached 179.1 million: The .com and .net domain name base ended the quarter at 179.1 million, up 5.1 percent from a year earlier, after a net increase of 3.05 million in the quarter. Source
• New registrations rose to 12.7 million: Verisign processed 12.7 million new .com and .net registrations in the quarter, compared with 10.4 million in the second quarter of 2025. Source
• Renewal rate edged higher: The final renewal rate for the first quarter of 2026 was 76.3 percent, against 75.5 percent a year earlier. Renewal rates are not fully measurable until 45 days after quarter end. Source

“We are also raising our guidance for full-year 2026,”

Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Costs, margins and pricing

• Cost of revenues was broadly flat: Cost of revenues was $50.0 million, against $49.1 million in the second quarter of 2025. Six-month cost of revenues was $99.2 million, against $98.5 million. Source
• Selling and R&D costs increased: Selling, general and administrative expense was $60.8 million, against $54.4 million. Research and development was $27.5 million, against $25.7 million. Source
• Interest and tax lines rose: Interest expense was $19.2 million, against $18.9 million. Income tax expense was $65.1 million, against $59.9 million. Source
• Wholesale .com fee rise set for November: The first-quarter release said the registry-level wholesale fee for each new and renewal .com registration rises from $10.26 to $10.97 effective Nov. 1, 2026.

Cash flow and balance sheet

• Operating cash flow rose to $232 million: Cash flow from operations was $232 million, against $202 million a year earlier. Six-month operating cash flow was $504.0 million, against $493.8 million. Source
• Cash and securities rose $454 million: Cash, cash equivalents and marketable securities reached $1.03 billion, up $454 million from year-end 2025. Deferred revenues were $1.45 billion, up $64 million. Source
• Capital spending rose: Purchases of property and equipment were $26.0 million for the six months, against $13.6 million a year earlier. Source
• Shares outstanding declined: Outstanding shares were 90.4 million at June 30, 2026, against 91.9 million at December 31, 2025. Source

“We are also pleased that the .web TLD has been delegated, and we look forward to offering .web domains through our registrar channel later this year.”

Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Debt refinancing

• Issued $550 million 5.10% notes: Verisign issued $550 million of 5.10% Senior Notes due 2031 on June 26, 2026. Source
• Redeemed 4.75% notes due 2027: On July 20, 2026, net proceeds from the issuance, with cash on hand, were used to redeem the $550 million 4.75% Senior Notes due 2027. Source

Capital returns and dividend

• Repurchased $197 million of stock: The company repurchased 0.7 million shares for $197 million in the second quarter. Source
• Repurchase authorization reached $1.50 billion: The board approved about $884 million of additional authorization on July 23, 2026, bringing the total available to $1.50 billion, with no expiration. Source
• Quarterly dividend set at $0.81: The board approved a $0.81 per share dividend on July 20, 2026, for holders of record on August 19, 2026, payable August 27, 2026. Source
• Six-month buybacks and dividends paid: Six-month repurchases were $426.8 million, against $408.5 million. Dividend payments were $147.8 million, against $72.1 million. Source

Strategy and operations

• .web TLD delegated into root zone: The .web top-level domain was delegated into the DNS root zone, with Verisign as the designated registry operator, as announced in a news release the day before. Source
• Resolution availability record extended: The .com and .net resolution system has delivered 100 percent availability for 29 years, extended last week, according to management. Source
• Reliance on DNS infrastructure cited: Management said the digital economy is increasingly reliant on this infrastructure, and that continuing strength in new domain registrations reflects this. Source

Coming up, as management said on 23 July 2026

• Offer .web domains through registrars: Management said it looks forward to offering .web domains through its registrar channel later this year. Source

Figures management reported

Earlier plans management reported on

• Met: Management said the availability record was extended to 29 years last week. Source
• Met: Management said more than 100 percent of free cash flow was returned through dividends and share repurchases, which it does consistently. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.