VeriSign Tops Q3 Estimates and Raises Guidance — Yet Shares Slip After Hours

VeriSign’s latest quarterly results gave investors plenty to cheer about — just not in after-hours trading.

The internet infrastructure giant delivered both revenue and earnings that exceeded Wall Street expectations for the third quarter of 2025, reaffirming its role as one of the most consistent cash generators in the tech sector. Despite the upbeat report and a slight increase in full-year guidance, shares dipped more than 1% in Thursday’s extended session.

Strong Quarter for a Quiet Tech Powerhouse

VeriSign — the company responsible for managing essential domain registries like .com and .net — posted:

CEO Jim Bidzos credited domain growth and disciplined execution for the results, adding that the company continues to return significant value to shareholders through dividends and aggressive buybacks.

VeriSign wrapped up the quarter with $618 million in cash and marketable securities, while generating $308 million in operating cash flow — a hallmark of the company’s high-margin, subscription-based business model.

Guidance Gets a Lift

On the earnings call, CFO John Calys offered slightly improved forward-looking numbers. VeriSign now expects full-year revenue between $1.652B and $1.657B, representing a mild bump from prior guidance.

Operating income is forecast to land between $1.119B and $1.124B, while capital spending remains minimal at $25M to $35M, reinforcing the business’s famously lean operating structure.

Retail Traders Grow Bullish — Buffett Remains Cautious

Retail investor enthusiasm heated up immediately after the report. Stocktwits data showed sentiment flipping from neutral to extremely bullish, with message activity surging into high-volume territory.

Comments from individual traders highlighted the “double beat” as a catalyst for more upside.

Meanwhile, institutional behavior has been more complex. Warren Buffett’s Berkshire Hathaway — long a shareholder — trimmed its position earlier this year, reducing its stake from 14.2% to 9.6%. Still, VeriSign remains one of the few technology holdings in Berkshire’s concentrated portfolio, signaling ongoing conviction.

Stock Performance: Strong Year, Tough Timing

Despite the mild after-hours pullback, VeriSign is having a solid year:

• +22% year-to-date

• Trades 19% below its late-July intraday record of $310.60

• 52-week trading range: $175.62 — $310.60

Investors may simply be taking some profits after a long stretch of outperformance — especially with the stock still trading at a premium valuation relative to its slow-and-steady growth profile.

Bottom Line

VeriSign keeps doing what it does best:

✅ High-margin recurring revenue
✅ Consistent cash generation
✅ Efficient capital allocation
✅ Reliable domain growth in a growing internet

The muted after-hours reaction looks more like short-term noise than a reflection of business health. As long as the global demand for .com identities keeps climbing, VeriSign’s long-term story stays intact — and retail traders seem eager to capitalize on it.