VeriSign, Inc.

For Q2 2026, VeriSign reported revenue of $435 million, up 6% year over year, operating income of $296 million, net income of $217 million, and diluted EPS of $2.38 versus $2.21 a year ago. Operating cash flow was $232 million and free cash flow was $213 million, compared with $202 million and $109 million in the year-ago quarter. Operating expense was $138 million, and the company ended the quarter with $1.034 billion in cash, cash equivalents and marketable securities. For full-year 2026, revenue is now expected to be between $1.745 billion and $1.755 billion, operating income between $1.185 billion and $1.195 billion, interest expense and non-operating net expense between $59 million and $65 million, capital expenditures between $55 million and $65 million, and the GAAP effective tax rate between 22% and 25%. Management also raised 2026 domain name base growth guidance to between 5.2% and 6%, and said .web is not expected to contribute meaningful revenue or expense in 2026.

Jim Bidzos struck an upbeat tone, emphasizing record domain demand, 29 years of 100% availability, and what he described as strong execution of marketing programs. He said AI is making it easier to create content and websites and is helping drive domain demand, while also noting that registrar behavior and VeriSign’s own marketing efforts are working together. He also highlighted .web’s delegation as a strategic milestone, saying the company is positioned to leverage its channel relationships and infrastructure to launch it later this year.

John Calys focused on the quarter’s financial strength and balance-sheet position. He cited $435 million of revenue, $296 million of operating income, $217 million of net income, $2.38 diluted EPS, $232 million of operating cash flow, and $213 million of free cash flow, plus $1.034 billion in cash, cash equivalents and marketable securities at quarter-end. He also updated full-year guidance and noted the refinancing impact on interest expense, with expected 2026 interest expense and non-operating net now at $59 million to $65 million; he said .web-related costs this year are expected to be modest and already included in guidance.

Analysts pressed management on what is driving the domain growth, including how much is from marketing execution versus AI and whether the November .com price increase is pulling demand forward. Bidzos said the drivers are working synergistically, that AI is making it easier to find and build domains, and that any pull-forward from pricing is not close to a material factor. Questions also focused on .web go-to-market, costs, and renewal trends; management said .web launch costs should be nonmaterial this year, pricing flexibility is greater than for .com/.net, and renewal rates remain fairly consistent despite the higher mix of first-time renewals.