Verisign: 2Q26 Review — Record Registrations Drive Guidance Raise; .web Delegated but immaterial to 2026E; maintain Neutral

研报英文原文证据摘录

Verisign: 2Q26 Review — Record Registrations Drive Guidance Raise; .web Delegated but immaterial to 2026E; maintain Neutral

j. EPS - 27E ($) 11.23 11.61 3.3%

DNS root zone with full wholesale pricing flexibility (subject only to 6-month

registrar notice) and the ability to sell premium names — neither of which Quarterly Forecasts (FYE Dec)

applies to .com/.net; launch timeline includes a 90-day security testing period, Adj. EPS ($)

30-day trademark holder priority window, and an LRP reserving .web 2025A 2026E 2027E

registrations for existing .com holders before general availability, expected late Q1 2.29 2.54A 2.79

Q2 2.38 2.59A 2.88

2026 or very early 2027; any .web-related costs for 2026 are factored into Q3 2.47 2.64 2.93

existing guidance and are not expected to be material. 4) Security-focused new Q4 2.42 2.69 3.01

products leveraging Verisign's PKI heritage and high-assurance DNS FY 9.55 10.46 11.61

infrastructure have been operational in test mode since early 2026; blog Style Exposure

announcements and product details are forthcoming, with a focus on Zero

Trust-aligned services at global scale. 5) Capital returns remained robust:

$197M in buybacks during 2Q26; $1.17B returned to shareholders over the

trailing 12 months (>100% of FCF); Board approved an additional $884M

repurchase authorization for a total of $1.5B available (no expiration).

• Ornery Mood: 1) Renewal rates face a structural headwind in 2H26 and into

2027 as elevated recent registration cohorts cycle through first-time renewal

(mid-40% average); management acknowledged an expected tick down,

partially offset by marketing quality improvements. 2) The 2Q26 renewal rate

of 75.2% was already slightly below the 75.5% recorded in 2Q25, reflecting

early signs of this mix shift.