VeriSign, Inc. (VRSN)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for simple businesses with durable advantages, and VeriSign fits much of that mold. It operates registry services for .com and .net and acts as a root zone maintainer, an infrastructure position that is difficult to replicate. The numbers show toll-road-like quality: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $434.6 million and net income was $216.5 million, a 49.82% margin. Revenue rose from $409.9 million in fiscal Q2 2025, the quarter ended 2025-06-30, to $434.6 million, roughly 6% growth, while net income rose from $207.4 million to $216.5 million. Annual results are steady: FY2025 revenue was $1.7 billion and net income $825.7 million, versus FY2024 revenue of $1.6 billion and net income $785.7 million. But FY2023 net income was $817.6 million, so profit progress has not been linear. The balance-sheet quality is harder to judge because D/E and ROE are not available, but FairStock calculates ROCE of 45.12% and trailing free cash flow of $1.1 billion, a 3.9% FCF yield. The moat is real, yet growth is slow; FairStock's Lynch category is SLOW GROWER, citing 0.3% annual profit growth over five years and 5.5% revenue growth. At the 2026-10-13 close of $301.76, FairStock calculates P/E 32.76, PEG 7.46, EV/EBITDA 23.82, Piotroski 6/9, and Altman Z -4.51. The price asks a lot for modest growth. I would call this a high-quality but fully priced compounder, not a bargain.

In plain English: VeriSign runs key parts of the internet's address system, including the .com and .net registries. Its business looks strong because it turns a large share of revenue into profit and produces steady cash, though growth is slow. At the 2026-10-13 close of $301.76, the price looks expensive relative to its profit growth and cash generation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer