# VeriSign (VRSN.US)

Canonical: https://gigainvestors.com/s/VRSN

Analysis as of: 2026-10-16T07:32:56.213Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $304.09 per share; close as of 2026-10-15.

Estimated value: low $133.52 per share, central $174.19 per share, high $202.06 per share. Buy at or below the central value $174.19 per share. Valuation as of 2026-10-16T07:32:56.213Z; scenarios are not confidence intervals.

Expected annual return: 6.9% at the stated quote. About 6.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.03×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.61×

- FY2018: 0.63×

- FY2019: 0.65×

- FY2020: 0.65×

- FY2021: 0.65×

- FY2022: 0.66×

- FY2023: 0.67×

- FY2024: 0.68×

- FY2025: 0.68×

- LTM to Jun 2026: 0.68×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: >100%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 85.8%

- Recent gross margin (lower of latest and 3-year median): 88.2%

- Years with nonpositive capital: 10

- Capital spending / revenue: 3.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 47.0%

- FY2018: >100%

- FY2019: >100%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

- LTM to Jun 2026: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.9B

- Net income, five-year total: $3.9B

- Return on incremental invested capital: 551.4%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: -0.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.03×

- FY2023: 1.00×

- FY2024: 1.01×

- FY2025: 1.01×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 78.1% vs 100.0%

- Per-share earnings: 3.42 to 8.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.4%

- Ordinary dilution, 5-year annual growth: -4.0%

- Market cap gain: $14B

- Cumulative retained earnings: $6.4B

- Diluted shares, 10-year annual growth: -3.4%

- Diluted shares, 5-year annual growth: -4.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.2%

- Per-share value change: $4.58

- Per-share value, starting three-year median: $3.42

- Per-share value, ending three-year median: $8.00

- Buybacks concentrated in cheaper years (correlation): 0.79

- Average buyback yield: 4.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $93M

- Cumulative net income, 10 years: $6.8B

- ROIC, first three-year median: 78.1%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.42

- FY2017: $3.68

- FY2018: $4.75

- FY2019: $5.15

- FY2020: $7.07

- FY2021: $6.99

- FY2022: $6.24

- FY2023: $7.90

- FY2024: $8.00

- FY2025: $8.80

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -20.0%

- Receivables to sales index (DSRI): 1.80×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.32×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.7%

- FY2017: -8.3%

- FY2018: -6.0%

- FY2019: -7.6%

- FY2020: 4.8%

- FY2021: -1.1%

- FY2022: -9.1%

- FY2023: -2.1%

- FY2024: -8.3%

- FY2025: -20.0%

## Holders

- [Warren Buffett](https://gigainvestors.com/BRK): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 12.2% a year for ten years · sales +3.1%

Story as of 2026-10-16T09:59:49.257Z; price observation 2026-10-15.

Price needs cash profits to grow 12.2% a year for ten years

- 2025-04-25: VeriSign (NasdaqGS:VRSN) Announces Increased Earnings And $0.77 Dividend ([finance.yahoo.com](https://finance.yahoo.com/news/verisign-nasdaqgs-vrsn-announces-increased-172554498.html))

### Sales · FY2025–2026

sales +3.1%; source https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm; observed 2026-02-05.

- FY2017: $1.2B 

- FY2018: $1.2B 

- FY2019: $1.2B 

- FY2020: $1.3B 

- FY2021: $1.3B 

- FY2022: $1.4B 

- FY2023: $1.5B 

- FY2024: $1.6B 

- FY2025: $1.7B 

- FY2026: $1.7B 

### Gross margin · FY2026

gross margin 88.5%; source https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm; observed 2026-02-05.

- FY2017: 83.4% 

- FY2018: 84.2% 

- FY2019: 85.3% 

- FY2020: 85.8% 

- FY2021: 85.5% 

- FY2022: 85.9% 

- FY2023: 86.8% 

- FY2024: 87.7% 

- FY2025: 88.2% 

- FY2026: 88.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 1.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm (filed 2026-02-05); FY2025: revenue 1656600000; grossProfit 1460300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VRSN.US: VeriSign, Inc., together with its subsidiaries, provides internet infrastructure and domain name registry services that enable internet navigation for various recognized domain names worldwide. The company provides root zone maintainer services operating two of thirteen internet root servers; and registration services and authoritative resolution for the .com and .net domains, which support global e-commerce. It also operates directory for .name and .cc; and back-end systems for .edu domain names. The company was incorporated in 1995 and is headquartered in Reston, Virginia.

### Why customers stay

Margins ranged from 86.8% to 88.2% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2023: grossProfit / revenue = 86.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2024: grossProfit / revenue = 87.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm (filed 2026-02-05); FY2025: grossProfit / revenue = 88.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); 10-year return on capital observations [[2017,0.46981700698330847],[2018,1.4639944497439434],[2019,2.1533122910034583],[2020,2.0348431281539785],[2021,1.6426056471480008],[2022,3.1226230237072574],[2023,3.8696459642239276],[2024,1.000001],[2025,1.000001],[2026,10.353917641188067]]; median 1.8387243876509896. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 86% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm (filed 2026-02-05); Gross margin observations: [[2021,0.8554259793789584],[2022,0.8591480103866938],[2023,0.8678588172259059]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 2 of 10 years; bought back USD 893.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2016: growth capex 25866204.14376673; upkeep 143707795.85623327; owner earnings 355104204.14376676. Growth capex / owner earnings = 0.07284116561260028.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2017: growth capex 0; upkeep 49499000; owner earnings 457627000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2018: growth capex 0; upkeep 37007000; owner earnings 593849000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2019: growth capex 0; upkeep 40316000; owner earnings 618313000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2020: growth capex 0; upkeep 43395000; owner earnings 817845000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2021: growth capex 5093000; upkeep 47940000; owner earnings 784800000. Growth capex / owner earnings = 0.006489551478083588.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2022: growth capex 0; upkeep 27400000; owner earnings 693300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2023: growth capex 1700000; upkeep 44100000; owner earnings 817600000. Growth capex / owner earnings = 0.0020792563600782778.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2024: growth capex 0; upkeep 28100000; owner earnings 794500000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm (filed 2026-02-05); FY2025: growth capex 0; upkeep 22800000; owner earnings 834100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,12404000],[2022,0],[2023,0],[2024,0],[2025,215200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm (filed 2026-02-05); FY2025: cash repurchases 893200000 USD.

### What could break it

"Changes or challenges to the pricing provisions in the" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm (filed 2026-02-05); Changes or challenges to the pricing provisions in the

### What the price says

The price assumes cash profits grow 12.2% yearly over ten years; actual growth was 11.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Ten-year compound average after fade. Initial solved rate 0.16245468172364225. Price 304.09; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.9772834903142877 → FY2025 8.892324093816631. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $84.02 per share

- 2016-11: $78.85 per share

- 2016-12: $76.07 per share

- 2017-01: $80.21 per share

- 2017-02: $82.47 per share

- 2017-03: $87.11 per share

- 2017-04: $88.92 per share

- 2017-05: $90.16 per share

- 2017-06: $92.96 per share

- 2017-07: $101.17 per share

- 2017-08: $103.75 per share

- 2017-09: $106.39 per share

- 2017-10: $107.52 per share

- 2017-11: $115.10 per share

- 2017-12: $114.44 per share

- 2018-01: $114.92 per share

- 2018-02: $116.02 per share

- 2018-03: $118.56 per share

- 2018-04: $117.42 per share

- 2018-05: $130.44 per share

- 2018-06: $137.42 per share

- 2018-07: $145.23 per share

- 2018-08: $158.61 per share

- 2018-09: $160.12 per share

- 2018-10: $142.54 per share

- 2018-11: $156.06 per share

- 2018-12: $148.29 per share

- 2019-01: $169.27 per share

- 2019-02: $178.04 per share

- 2019-03: $181.56 per share

- 2019-04: $197.45 per share

- 2019-05: $194.98 per share

- 2019-06: $209.16 per share

- 2019-07: $211.09 per share

- 2019-08: $203.85 per share

- 2019-09: $188.63 per share

- 2019-10: $190.02 per share

- 2019-11: $190.74 per share

- 2019-12: $192.68 per share

- 2020-01: $208.14 per share

- 2020-02: $189.75 per share

- 2020-03: $180.09 per share

- 2020-04: $209.49 per share

- 2020-05: $219.01 per share

- 2020-06: $206.83 per share

- 2020-07: $211.68 per share

- 2020-08: $214.80 per share

- 2020-09: $204.85 per share

- 2020-10: $190.70 per share

- 2020-11: $200.72 per share

- 2020-12: $216.40 per share

- 2021-01: $194.07 per share

- 2021-02: $194.03 per share

- 2021-03: $198.76 per share

- 2021-04: $218.77 per share

- 2021-05: $219.92 per share

- 2021-06: $227.69 per share

- 2021-07: $216.37 per share

- 2021-08: $216.26 per share

- 2021-09: $205.01 per share

- 2021-10: $222.67 per share

- 2021-11: $239.91 per share

- 2021-12: $253.82 per share

- 2022-01: $217.18 per share

- 2022-02: $213.72 per share

- 2022-03: $222.46 per share

- 2022-04: $178.69 per share

- 2022-05: $174.55 per share

- 2022-06: $167.33 per share

- 2022-07: $189.16 per share

- 2022-08: $182.22 per share

- 2022-09: $173.70 per share

- 2022-10: $200.46 per share

- 2022-11: $199.81 per share

- 2022-12: $205.44 per share

- 2023-01: $218.05 per share

- 2023-02: $196.83 per share

- 2023-03: $211.33 per share

- 2023-04: $221.80 per share

- 2023-05: $223.32 per share

- 2023-06: $225.97 per share

- 2023-07: $210.95 per share

- 2023-08: $207.79 per share

- 2023-09: $202.53 per share

- 2023-10: $199.66 per share

- 2023-11: $212.20 per share

- 2023-12: $205.96 per share

- 2024-01: $198.88 per share

- 2024-02: $195.29 per share

- 2024-03: $189.51 per share

- 2024-04: $169.48 per share

- 2024-05: $174.32 per share

- 2024-06: $177.80 per share

- 2024-07: $187.01 per share

- 2024-08: $183.90 per share

- 2024-09: $189.96 per share

- 2024-10: $176.84 per share

- 2024-11: $187.18 per share

- 2024-12: $206.96 per share

- 2025-01: $215.00 per share

- 2025-02: $237.88 per share

- 2025-03: $253.87 per share

- 2025-04: $282.12 per share

- 2025-05: $272.47 per share

- 2025-06: $288.80 per share

- 2025-07: $268.87 per share

- 2025-08: $273.37 per share

- 2025-09: $279.57 per share

- 2025-10: $239.80 per share

- 2025-11: $251.99 per share

- 2025-12: $242.95 per share

- 2026-01: $244.23 per share

- 2026-02: $227.94 per share

- 2026-03: $248.36 per share

- 2026-04: $268.66 per share

- 2026-05: $285.38 per share

- 2026-06: $251.56 per share

- 2026-07: $290.02 per share

- 2026-08: $288.28 per share

- 2026-09: $282.01 per share

- 2026-10: $301.76 per share

## Annual estimated value (USD per share)

- FY2016: low $50.01 per share, central $55.00 per share, high $61.65 per share

- FY2017: low $61.90 per share, central $73.23 per share, high $82.29 per share

- FY2018: low $59.20 per share, central $78.00 per share, high $89.73 per share

- FY2019: low $54.48 per share, central $60.61 per share, high $68.76 per share

- FY2020: low $76.17 per share, central $95.65 per share, high $110.16 per share

- FY2021: low $91.26 per share, central $125.87 per share, high $146.02 per share

- FY2022: low $81.21 per share, central $91.19 per share, high $104.48 per share

- FY2023: low $95.01 per share, central $106.91 per share, high $122.76 per share

- FY2024: low $117.05 per share, central $155.27 per share, high $180.88 per share

- FY2025: low $120.31 per share, central $158.33 per share, high $184.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:41.908Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1014473/000101447326000006/vrsn-20251231.htm); period 2025-12-31, filed 2026-02-05.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.