VeriSign (VRSN) investor relations material

Executive summary

• Delivered strong operational and financial results in Q1 2026, with revenue of $429 million, operating income of $294 million, net income of $215 million, and diluted EPS of $2.34, all up year-over-year.

• Domain name base reached a record 176.1 million, up 3.7% year-over-year, with 11.5 million new registrations, the highest since H1 2021.

• Returned over $1.13 billion to shareholders in the past four quarters through share repurchases and dividends, exceeding 100% of free cash flow.

• Maintained 100% service availability and continued investment in secure, stable, and reliable internet infrastructure.

• Continued to benefit from AI-driven demand, tailored marketing, and strong global commerce support.

Financial highlights

• Revenue for Q1 2026 was $429 million, up 6.6% year-over-year.

• Operating income reached $294 million, up 8.3% year-over-year.

• Net income was $215 million, with diluted EPS of $2.34, both up from the prior year.

• Free cash flow for Q1 was $265 million; cash, cash equivalents, and marketable securities totaled $556 million at quarter end.

• Gross margin and operating margin for Q1 2026 were approximately 68.5%.

Outlook and guidance

• Full-year 2026 revenue expected between $1.730 billion and $1.745 billion.

• Operating income guidance raised to $1.170–$1.185 billion.

• Domain name base growth guidance increased and narrowed to 3.1%–4.3% for 2026.

• Capital expenditures expected between $55 million and $65 million; effective tax rate 22%–25%.

• Announced a .com price increase from $10.26 to $10.97 effective November 1, 2026.