Cautious Outlook Will Shape Domain Momentum And Share Buybacks Ahead

Analysts have lowered their price target for VeriSign by $5, now citing a revised fair value of $304. The adjustment reflects more cautious revenue growth projections and updated views on domain-related advertising trends observed after the company’s latest results.

Analyst Commentary

Recent commentary from Wall Street analysts offers a mix of optimism about VeriSign’s execution and concerns about the sustainability of growth. Their perspectives highlight both the company’s strengths following Q3 results and areas where caution is warranted.

• Bullish analysts view current share levels as an attractive entry point, particularly in light of the company’s strong Q3 performance and upwardly revised domain growth guidance.
• Confidence is expressed in management’s ability to address concerns surrounding domain advertising and promotional activity. Analysts believe that recent commentary alleviates much of the bear thesis.
• Higher-than-expected clarity on AdSense exposure and related revenues supports ongoing conviction in long-term growth drivers.
• Updates to valuation models following the earnings report continue to support price targets above current levels, reflecting resilience in core business metrics.

• Bearish analysts point to changes in parked domain advertising and promotional strategies as factors that may contribute to lower quality adds and slower revenue growth over time.
• A more cautious revenue outlook has led to reductions in price targets among some research firms. This indicates that near-term growth expectations have moderated.
• The risk of further impact from shifts in online advertising trends remains a focus, as this could affect VeriSign’s exposure and top-line performance.
• Despite improved guidance, continued competitive and market pressures introduce uncertainty around future execution and growth sustainability.

What's in the News

• VeriSign completed the repurchase of 763,000 shares from July to September 2025, totaling $215.07 million. The company has now repurchased over 55.9 million shares since 2015 under its buyback program (Key Developments).
• The company has completed a follow-on equity offering and raised $1.2255 billion by issuing 4.3 million shares of common stock at $285 per share (Key Developments).
• Multiple lock-up agreements impacting both common stock and restricted stock units will end between July and October 2025, affecting a significant portion of executive and selling stockholder holdings (Key Developments).
• An additional lock-up period is set to expire in July 2026 for certain shares and restricted stock units. This will extend restrictions for some stakeholders to 366 days (Key Developments).

Valuation Changes

• Fair Value: Decreased moderately to $304 from the previous $309, reflecting updated expectations.
• Discount Rate: Increased slightly to 9.08% from 9.01%, indicating increased perceived risk or uncertainty.
• Revenue Growth: Dropped significantly, now projected at 4.69% compared to the earlier 6.42% estimate.
• Net Profit Margin: Declined marginally to 51.86% from 52.98%, suggesting lower anticipated profitability.
• Future P/E: Increased slightly to 33.83x from 33.33x, representing a modest uptick in valuation multiples.