VeriSign falls despite Q3 results and outlook see positive reactions from analysts

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Shares of VeriSign (NASDAQ:VRSN [https://seekingalpha.com/symbol/VRSN]) fell about 8% on Friday despite third quarter results and outlook drawing praise from analysts.

Citi reiterated its Buy rating and $337 price target on the shares of VeriSign, which provides internet infrastructure and domain name registry services.

"Verisign reported strong 3Q25 results and raised domain guidance, indicative of momentum in domain trends. While a few bearish narratives have emerged, one around industry changes to parked domain advertising and one around promotional activity leading to lower quality adds eventually leading to higher churn, we believe Verisign’s results and commentary adequately addressed much of the concerns," said analysts led by Ygal Arounian.

The analysts expect that most parked domain industry participants are ultimately aiming to monetize through secondary market transactions, and that domain owners can pivot to other ad models. Management also noted that it believes its registrar incentive program works with partners to add higher quality ads and is a multi-year evolution. Also, stronger growth across all domains in the third quarter highlights broader based strength, the analysts added.

"Management also believes it is starting to see positive impacts from GenAI. We see a dislocation in shares to strong volume momentum, and see an attractive entry point at current valuations," Arounian and his team.

For the third quarter, VeriSign's revenue [https://seekingalpha.com/pr/20278276-verisign-reports-third-quarter-2025-results#hasComeFromMpArticle] rose 7.3% year-over-year to $419M, while GAAP EPS [https://seekingalpha.com/news/4507846-verisign-gaap-eps-of-2_27-beats-by-0_03-revenue-of-419_1m-beats-by-2_25m] jumped about 9.7% year-over-year to $2.27.

The company provided its updated full year revenue outlook [https://seekingalpha.com/article/4832805-verisign-inc-vrsn-q3-2025-earnings-call-transcript] during its earnings call. VeriSign now expects revenue to be between $1.652B and $1.657B, compared to the prior forecast of $1.645B to $1.655B provided during the second quarter earnings [https://seekingalpha.com/article/4804309-verisign-inc-vrsn-q2-2025-earnings-call-transcript] call in July.

“In the quarter we delivered both growth in the domain name base and solid financial performance. We also continued our consistent return of value to shareholders through dividends and share repurchases,” said Jim Bidzos, executive chairman, president and CEO.

MORE ON VERISIGN

* VeriSign, Inc. (VRSN) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4832805-verisign-inc-vrsn-q3-2025-earnings-call-transcript]
* VeriSign, Inc. 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4832799-verisign-inc-2025-q3-results-earnings-call-presentation]
* VeriSign: The Internet Might Stick Around, But Not Me In This Stock [https://seekingalpha.com/article/4825538-verisign-the-internet-might-stick-around-but-not-me-in-this-stock]
* VeriSign targets 2.2%-2.5% domain name base growth for 2025 as AI drives demand [https://seekingalpha.com/news/4508012-verisign-targets-2_2-percentminus-2_5-percent-domain-name-base-growth-for-2025-as-ai-drives]
* VeriSign Q3 GAAP EPS of $2.27 revenue of $419.1M [https://seekingalpha.com/news/4507846-verisign-gaap-eps-of-2_27-beats-by-0_03-revenue-of-419_1m-beats-by-2_25m]