Citi Cuts VeriSign Price Target 17% to $280 After Q4 Earnings
Analyst firm trimmed its 12-month price target on VeriSign to $280 from $337 while maintaining a Buy rating, citing a post-earnings pullback as an attractive entry point. Q4 2025 revenue reached $425.3 million versus $424.05 million consensus, with EPS of $2.23 missing forecasts of $2.35, and FY revenue guidance set at $1.715–1.735 billion.
1. Analyst Revision and Entry Opportunity
The analyst trimmed the 12-month price target on VeriSign to $280 from $337 while reaffirming a Buy rating, highlighting the recent share decline as an attractive entry opportunity. The firm cited ongoing domain growth and AI-driven infrastructure projects as key drivers supporting the valuation despite near-term volatility.
2. Q4 2025 Financial Results
VeriSign posted Q4 revenue of $425.3 million compared with consensus of $424.05 million, driven by accelerating domain registrations and strategic investments in R&D. EPS came in at $2.23 versus forecasts of $2.35, reflecting higher operating expenses tied to infrastructure improvements and AI development initiatives.
3. Full-Year Guidance
For the full 2026 fiscal year, VeriSign projects revenue between $1.715 billion and $1.735 billion, with operating income of $1.16 billion to $1.18 billion, and capital expenditures of $55 million to $65 million. Management emphasized continued investment in AI capabilities and network capacity to support long-term domain growth.