VeriSign: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Oct. 22, 2026, VeriSign (NASDAQ:VRSN) announced that its domain name base reached 183 million names with a record 13.1 million new registrations in the quarter. Expanding the domain base drives recurring software revenue for the company's core top-level domain (TLD) registry business, which manages internet address extensions such as .com and .net. Three things management said on the earnings call stand out.

1. Artificial Intelligence Tools Are Accelerating Domain Name Registrations

Artificial intelligence software helps creators launch websites quickly, which boosts demand for domain names. Management increased its full-year 2026 domain base growth target to between 6.5% and 7% as customer demand picked up across key regions.

The factors driving the solid domain name based trends of the past several quarters further accelerated during the third quarter. Registrars have successfully engaged with our marketing programs and are focused on customer acquisition, plus AI tools are making content and website creation faster and easier.
-- Jim Bidzos, Executive Chairman, President and Chief Executive Officer

2. The Imminent Launch of .web Unlocks Unregulated Pricing Opportunities

The company prepares to launch .web in early 2027 following a limited registration period. Unlike its regulated .com contract, the new extension allows management to set premium pricing and flexible marketing promotions.

As we shared last quarter, the .web registry agreement allows for pricing flexibility, including premium names, which we intend to use.
-- Jim Bidzos, Executive Chairman, President and Chief Executive Officer

3. VeriSign Informed Expands Infrastructure Services Into Security Credentials

Management introduced VeriSign Informed (VI), a validation service designed to verify digital credentials used in encryption and corporate network security. The service runs on existing infrastructure and targets commercial delivery in the first half of 2027.

On October 5th, we announced VeriSign Informed, or VI, a security service to support the use of critically and widely used digital credentials. There are many use cases for these credentials: authorized network access by users in corporate networks, secure email, secure software distribution, including app updates, and on billions of financial chip cards worldwide.
-- Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Looking Ahead

Domain query volume continues to grow across its global domain name system (DNS), and management is not hiding its satisfaction with the core domain registry operation.

We are pleased with the results of our core DNS business in Q3. We believe that our record of more than 29 years of uninterrupted .com and .net DNS global availability contributes to our domain growth by establishing and maintaining .com and .net as highly reliable and trusted TLDs, now processing approximately 800 billion DNS queries per day on average, returning cryptographically protected answers within milliseconds. With this unparalleled record of availability, reliability, and performance, we use the term "high assurance" to describe our services.
-- Jim Bidzos, Executive Chairman, President and Chief Executive Officer

The business relies on a 29-year track record of continuous internet availability, strict pricing discipline, and high-margin infrastructure scaling. Management remains focused on leveraging this network for new digital security products and returning capital to shareholders.

We have always seen ourselves as a critical infrastructure service provider that prioritizes security, stability, and resiliency. That focus has delivered profitable growth for the company and our focus will not change.
-- Jim Bidzos, Executive Chairman, President and Chief Executive Officer

The Motley Fool has positions in and recommends VeriSign. The Motley Fool has a disclosure policy.