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Verisign Inc./Ca (VRSN) Stock Fundamental Analysis & AI Rating 2026

VRSN Nasdaq Services-Computer Programming Services DE CIK: 0001014473
Recently Updated • Analysis: Apr 18, 2026 • SEC Data: 2025-12-31
BUY
72% Conf
Pending
Analysis scheduled

📊 VRSN Key Takeaways

Revenue: $1.7B
Net Margin: 49.8%
Free Cash Flow: $1.1B
Current Ratio: 0.49x
Debt/Equity: N/A
EPS: $6.24
AI Rating: BUY with 72% confidence
Verisign Inc./Ca (VRSN) receives a BUY rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $1.7B, net profit margin of 49.8%, Verisign Inc./Ca demonstrates strong fundamentals in the Technology sector. Below is our complete VRSN stock analysis for 2026.

Is Verisign Inc./Ca (VRSN) a Good Investment?

Claude

Verisign operates a mission-critical domain registry business (.com/.net) with exceptional profitability (67.7% operating margin, 49.8% net margin) and strong free cash flow generation ($1.1B annually). The negative stockholders' equity and weak current ratio (0.49x) indicate aggressive financial engineering, but the substantial operating cash flows and zero long-term debt suggest operational health despite balance sheet concerns.

Why Buy Verisign Inc./Ca Stock? VRSN Key Strengths

Claude
  • + Exceptional operating margins (67.7%) and net margins (49.8%) indicate strong competitive moat and pricing power in mission-critical domain registry business
  • + Outstanding free cash flow generation ($1.1B annually, 64.5% FCF margin) with minimal capital requirements ($22.8M CapEx)
  • + No long-term debt and strong interest coverage (14.6x) despite negative equity structure

VRSN Stock Risks: Verisign Inc./Ca Investment Risks

Claude
  • ! Negative stockholders' equity (-$2.2B) indicates unsustainable capital allocation through buybacks/dividends exceeding retained earnings
  • ! Weak current ratio (0.49x) and quick ratio (0.49x) signal short-term liquidity stress despite strong operating cash flows
  • ! Diluted EPS declined 10.9% YoY despite revenue growth, indicating shareholder dilution or aggressive buyback impact on per-share metrics

Key Metrics to Watch

Claude
  • * Free cash flow generation and capital allocation strategy sustainability
  • * Stockholders' equity trend and ability to restore positive equity balance
  • * Current ratio and working capital management relative to liability structure

Verisign Inc./Ca (VRSN) Financial Metrics & Key Ratios

Revenue
$1.7B
Net Income
$825.7M
EPS (Diluted)
$6.24
Free Cash Flow
$1.1B
Total Assets
$1.3B
Cash Position
$307.9M

💡 AI Analyst Insight

The 64.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

VRSN Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 67.7%
Net Margin 49.8%
ROE N/A
ROA 62.3%
FCF Margin 64.5%

VRSN vs Technology Sector: How Verisign Inc./Ca Compares

How Verisign Inc./Ca compares to Technology sector averages

Net Margin
VRSN 49.8%
vs
Sector Avg 18.0%
VRSN Sector
ROE
VRSN 0.0%
vs
Sector Avg 22.0%
VRSN Sector
Current Ratio
VRSN 0.5x
vs
Sector Avg 2.5x
VRSN Sector
Debt/Equity
VRSN 0.0x
vs
Sector Avg 0.5x
VRSN Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Verisign Inc./Ca Stock Overvalued? VRSN Valuation Analysis 2026

Based on fundamental analysis, Verisign Inc./Ca has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
N/A
Sector avg: 22%
Net Profit Margin
49.8%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Verisign Inc./Ca Balance Sheet: VRSN Debt, Cash & Liquidity

Current Ratio
0.49x
Quick Ratio
0.49x
Debt/Equity
N/A
Debt/Assets
262.5%
Interest Coverage
14.56x
Long-term Debt
$0.0

VRSN Revenue & Earnings Growth: 5-Year Financial Trend

VRSN 5-year financial data: Year 2021: Revenue $1.3B, Net Income $612.3M, EPS $5.15. Year 2022: Revenue $1.4B, Net Income $814.9M, EPS $7.07. Year 2023: Revenue $1.5B, Net Income $784.8M, EPS N/A. Year 2024: Revenue $1.6B, Net Income $673.8M, EPS N/A. Year 2025: Revenue $1.7B, Net Income $817.6M, EPS N/A.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Verisign Inc./Ca's revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.07 reflects profitable operations.

VRSN Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
64.5%
Free cash flow / Revenue

VRSN Quarterly Earnings & Performance

Quarterly financial performance data for Verisign Inc./Ca including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $390.6M $201.3M $2.07
Q2 2025 $387.1M $198.8M $2.01
Q1 2025 $384.3M $194.1M $1.92
Q3 2024 $376.3M $188.5M $1.83
Q2 2024 $372.0M $185.7M $1.79
Q1 2024 $364.4M $178.7M $1.70
Q3 2023 $356.9M $169.5M $1.58
Q2 2023 $351.9M $167.3M $1.54

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Verisign Inc./Ca Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$1.1B
Cash generated from operations
Stock Buybacks
$881.6M
Shares repurchased (TTM)
Capital Expenditures
$22.8M
Investment in assets
Dividends Paid
$215.2M
Returned to shareholders

VRSN SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Verisign Inc./Ca (CIK: 0001014473)

📋 Recent SEC Filings

Date Form Document Action
Apr 16, 2026 4 xslF345X06/wk-form4_1776371612.xml View →
Apr 15, 2026 4 xslF345X06/wk-form4_1776285140.xml View →
Apr 10, 2026 DEF 14A vrsn-20260409.htm View →
Apr 8, 2026 4 xslF345X06/wk-form4_1775684079.xml View →
Mar 26, 2026 4 xslF345X06/wk-form4_1774559637.xml View →

Frequently Asked Questions about VRSN

What is the AI rating for VRSN?

Verisign Inc./Ca (VRSN) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are VRSN's key strengths?

Claude: Exceptional operating margins (67.7%) and net margins (49.8%) indicate strong competitive moat and pricing power in mission-critical domain registry business. Outstanding free cash flow generation ($1.1B annually, 64.5% FCF margin) with minimal capital requirements ($22.8M CapEx).

What are the risks of investing in VRSN?

Claude: Negative stockholders' equity (-$2.2B) indicates unsustainable capital allocation through buybacks/dividends exceeding retained earnings. Weak current ratio (0.49x) and quick ratio (0.49x) signal short-term liquidity stress despite strong operating cash flows.

What is VRSN's revenue and growth?

Verisign Inc./Ca reported revenue of $1.7B.

Does VRSN pay dividends?

Verisign Inc./Ca pays dividends, with $215.2M distributed to shareholders in the trailing twelve months.

Where can I find VRSN SEC filings?

Official SEC filings for Verisign Inc./Ca (CIK: 0001014473) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is VRSN's EPS?

Verisign Inc./Ca has a diluted EPS of $6.24.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is VRSN a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Verisign Inc./Ca has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is VRSN stock overvalued or undervalued?

Valuation metrics for VRSN: ROE of N/A (sector avg: 22%), net margin of 49.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy VRSN stock in 2026?

Our dual AI analysis gives Verisign Inc./Ca a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is VRSN's free cash flow?

Verisign Inc./Ca's operating cash flow is $1.1B, with capital expenditures of $22.8M. FCF margin is 64.5%.

How does VRSN compare to other Technology stocks?

Vs Technology sector averages: Net margin 49.8% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.49 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI