Verisign revenue rises 5.7% from a year earlier to $443.0 million while net income holds at $212.6 million

Verisign reported third-quarter 2026 revenue of $443.0 million, up 5.7% from $419.1 million a year earlier, and operating income of $296.5 million, up 4.3%. Net income was $212.6 million against $212.8 million, and diluted earnings per share rose to $2.35 from $2.27.

Costs outrun revenue above the operating line

Revenue growth of 5.7% reached operating income at a slower 4.3%, and the statements show where the difference went. Selling, general and administrative expense rose 15.8% to $70.2 million from $60.6 million, lifting total costs and expenses to $146.5 million from $134.8 million. Operating margin narrowed to 66.9% from 67.8%. Two items below operating income also moved: interest expense rose to $21.2 million from $18.9 million, and income tax expense to $67.0 million from $58.9 million, an effective rate of 24.0%. The quarter also absorbed a pre-tax operating loss of $7.5 million on certain assets held for sale, which the company said reduced diluted EPS by $0.06. Over the first nine months, revenue of $1.31 billion was 6.1% higher, net income of $643.6 million was 3.9% higher, and diluted EPS of $7.06 was 7.3% above the prior-year period.

Registrations grow faster than the top line

Verisign ended September with 182.5 million .com and .net registrations in the domain name base, 6.1% more than a year earlier and a net increase of 3.36 million names during the quarter. New registrations processed in the quarter rose to 13.1 million from 10.6 million, an increase of 23.6%. The final renewal rate for the second quarter of 2026 was 75.2%, against 75.5% for the same quarter of 2025; the release notes that renewal rates are not fully measurable until 45 days after the end of a quarter, so the third-quarter figure is not final. Executive Chairman and Chief Executive Jim Bidzos tied the quarter to two products in the pipeline: "The rollout of the .web top-level domain is on track, and we opened the limited beta phase of our high-assurance validation service, Verisign Informed™". The release sets no date for general .web availability.

Cash falls as buybacks and dividends absorb the quarter

Cash, cash equivalents and marketable securities totaled $476 million at September 30, a decrease of $104 million from year-end 2025. Cash flow from operations was $268 million for the quarter, compared with $308 million a year earlier, and nine-month operating cash flow of $772.3 million compared with $801.5 million. Deferred revenues, which represent registry fees billed but not yet earned, reached $1.46 billion, up $79 million from year-end. Verisign repurchased 700,000 shares for $189 million during the quarter and had $1.36 billion remaining under a program with no expiration. On October 19 the board approved a quarterly cash dividend of $0.81 a share, payable November 24 to stockholders of record on November 17.

An unexplained intangible asset and no outlook

The release carries no revenue or earnings guidance for the fourth quarter or for the full year, and it offers no consensus comparison, so this document alone cannot score the quarter against expectations. Filed as Exhibit 99.1 to a Form 8-K on October 22, the release also leaves two balance-sheet movements unexplained: intangible assets of $171.4 million appear at September 30 where the year-end column shows none, and the $145.2 million of deposits to acquire intangible assets carried at December 31 is gone, consistent with a completed purchase the release does not identify. The $7.5 million loss on assets held for sale is likewise unnamed. Management discusses the quarter on a call at 4:30 p.m. EDT today, and the Form 10-Q for the period is the next filed document that should explain both the intangible-asset purchase and the held-for-sale classification.