VeriSign Q2 2026: Record Registrations, Raised Guidance, .web TLD Delegated

Transcript intelligence

What changed

Revenue of $434.6M beat estimates by 0.3% and grew 6% YoY; EPS of $2.38 missed by 1.7% but rose 7.7% YoY. The domain name base reached 179.1M with a record 12.7M new registrations — the highest quarterly total in company history. Renewal rate was 75.2%, down from 76.3% in Q1. Management raised full-year domain base growth guidance to 5.2–6% (from 3.1–4.3%) and revenue guidance to $1.745–$1.755B (from $1.73–$1.745B). The .web gTLD was delegated into the DNS root zone with a launch expected late 2026 or early 2027. The board expanded the buyback by $884M to $1.5B and raised the dividend to $0.81/share. The stock gained 7.0% on 2.8x volume the next session, with a further 2.5% drift.

Guidance delta

Domain base growth raised from 3.1–4.3% to 5.2–6% for full-year 2026. Revenue guidance raised from $1.73–$1.745B to $1.745–$1.755B. Guidance sentiment shifted from maintained (Q1) to raised (Q2). CapEx outlook remains stable.

Key takeaways

• Revenue of $435M and EPS of $2.38, both up year-over-year
• Domain name base grew to 179.1M with a 3.05M quarterly increase and 75.2% renewal rate
• Guidance for 2026 domain base growth increased to 5.2–6% and full-year revenue guidance raised to $1.745–$1.755B
• .web TLD delegated and slated for launch later this year with flexible wholesale pricing
• Share repurchase program expanded and dividend increased, returning over 100% of free cash flow to shareholders

Management priorities

• Launch .web TLD with a limited registration period for existing .com holders followed by general availability
• Roll out security-focused services leveraging high-assurance infrastructure
• Continue aggressive marketing programs to drive domain registrations
• Maintain quarterly dividend and expand share repurchase program
• Manage CapEx to mitigate component price volatility