Why Citi Views VeriSign, Inc. (VRSN)'s Dip as an Attractive Entry Point

VeriSign, Inc. (NASDAQ:VRSN) is among the most profitable software stocks to buy now. On February 9, Citi trimmed the price target on VeriSign, Inc. (NASDAQ:VRSN) to $280 from $337 and maintained a Buy rating, TheFly reported. According to the firm, the post-earnings pullback offers an appealing entry point, with the company’s fundamentals remaining solid amid accelerating domain growth driven by AI tailwinds.

Earlier, on February 5, VeriSign, Inc. (NASDAQ:VRSN) reported its Q4 2025 earnings, delivering revenue above consensus and missing EPS guidance. The company posted EPS of $2.23 and revenue of $425.3 million, compared with forecasts of $2.35 and $424.05 million, respectively. The EPS miss is primarily due to increased operating expenses or strategic investments.

“We are constantly doing R&D. We are constantly improving our own infrastructure,” stated CEO Jim Bidzos. “AI is undoubtedly a huge part of that, and I think it’s probably safe to say that it’s gonna continue to grow for well into the foreseeable future,” he added.

Looking ahead, VeriSign, Inc. (NASDAQ:VRSN) anticipates revenue in the range from $1.715 billion to $1.735 billion and operating income between $1.16 billion and $1.18 billion. The capital expenditure guidance is expected to fall between $55 million and $65 million.

VeriSign, Inc. (NASDAQ:VRSN) is a Virginia-based provider of internet infrastructure and domain name registry services. Founded in 1995, the company facilitates internet navigation for several recognized domain names worldwide.

While we acknowledge the potential of VRSN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.