Why VeriSign Stock Soared Friday

Core Insights - VeriSign shares surged after the release of first-quarter earnings and the declaration of a dividend for the first time, leading to a 9.3% increase in stock price and a year-to-date gain of 33% [1] Financial Performance - The company reported a nearly 5% year-over-year growth in both revenue and operating income, and it raised its full-year guidance for 2025 for these metrics [4] - VeriSign declared a cash dividend of $0.77 per share, resulting in a forward dividend yield of approximately 1.1% [5] - The company repurchased 1 million shares at an average price of $230 per share, indicating strong free cash flow, with nearly $800 million still authorized for share repurchases as of the end of the quarter [5] Shareholder Engagement - The initiation of a quarterly cash dividend is expected to please shareholders, including significant investor Warren Buffett and his Berkshire Hathaway, which has held VeriSign for over a decade [2][3] - Buffett's Berkshire Hathaway increased its holding in VeriSign, valued at about $2.75 billion at the end of Q4, just outside of its top 10 largest holdings [3] Market Position - VeriSign is recognized for managing internet domain names and providing critical internet infrastructure, which positions it favorably despite potential economic slowdowns and currency fluctuations [6]