GET DAILY SIGNALSVerisk Analytics (VRSK) Q3 Earnings: Revenue +5.3%, Adjusted EPS +14%
Key Takeaways
- Revenue reached $809 million, up 5.3% year over year and up 7.4% on an organic constant currency (OCC) basis, a measure that strips out currency swings and recent deals.
- Diluted adjusted earnings per share (EPS, or profit divided by shares outstanding) rose 14.0% to $1.96, slightly ahead of consensus estimates near $1.92.
- GAAP (generally accepted accounting principles) EPS was $1.70, up 5.6%, while net income slipped 2.8% to $219 million on investment-related losses and higher interest expense.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 7.0% to $459 million, with the margin expanding to 56.7%.
- Subscription revenue, about 84% of the total, grew 8.2% on an OCC basis, while transactional revenue rose 3.2%.
- Management reaffirmed its full-year 2026 guidance for revenue, adjusted EBITDA, and diluted adjusted EPS.
Why This Quarter Matters for Verisk
Verisk Analytics serves as a key data analytics and technology partner to the global insurance industry, assisting carriers with risk pricing, claims processing, and fraud prevention. With the majority of revenue coming from subscriptions, these quarterly updates provide a steady view into recurring demand in underwriting and claims. The third-quarter results are particularly relevant now, as they indicate whether the company can maintain its medium-term growth pace amid a softer insurance environment, reduced catastrophe activity, and evolving client spending patterns. I also checked this using Tickeron’s AI Screener to compare the stock’s performance against industry peers.
The Quarter’s Financial Details
Verisk posted third-quarter 2026 revenue of $809 million, marking a 5.3% increase from $768 million the prior year and a 7.4% rise on an organic constant currency basis. Underwriting revenue advanced 4.8% on a reported basis (7.7% OCC) to $568 million, while claims revenue increased 6.6% (6.7% OCC) to $241 million.
Diluted adjusted EPS reached $1.96, reflecting a 14.0% gain from $1.72 a year earlier and edging past consensus estimates around $1.92. GAAP diluted EPS stood at $1.70, up 5.6%, although net income fell 2.8% to $219 million due to losses on cost-based investments and elevated interest expense.
Adjusted EBITDA climbed 7.0% to $459 million, pushing the margin to 56.7%, an expansion of 90 basis points year over year. Free cash flow, a non-GAAP figure, declined 40.5% to $200 million, influenced by collection timing, higher interest payments, and the absence of a prior-year tax refund. Management left full-year guidance unchanged, targeting revenue between $3.19 billion and $3.24 billion along with diluted adjusted EPS of $7.45 to $7.75.
Market Response and Investor Views
Shares of Verisk advanced after the release, climbing about 4.5% to near $208 in early trading based on market data. The lift aligned with the adjusted EPS beat and the durability of subscription revenue, which expanded 8.2% on an OCC basis after 8.7% growth in the same period last year. From what I see, investor sentiment also drew support from management’s affirmation that 2026 remains aligned with Investor Day targets.
Softer GAAP net income and the drop in free cash flow attracted some attention, yet management linked the cash-flow softness mainly to timing issues rather than any weakening in the core subscription business. The reaffirmed outlook helped ease worries about the softer insurance market and below-average weather activity.
Looking Ahead: Areas Worth Monitoring
Going forward, attention will center on whether Verisk can keep subscription momentum intact while the broader insurance market stays stable but less robust than in recent periods. Management pointed out that below-average weather events have tempered repair and restoration demand for contractor and adjuster clients, which represent roughly 10% of total revenue, and these effects are likely to continue into the fourth quarter.
Transactional revenue, which posted 3.2% OCC growth this quarter, benefited partly from easier comparisons and stronger services revenue that management does not anticipate repeating in the final quarter. Maintaining this segment will hinge on weather-related activity and property demand trends.
On the cost front, free cash flow conversion merits watching after the notable quarterly decline. Management described the weakness as largely timing-driven, but a prolonged shortfall could affect a business that supports buybacks and dividends through operating cash flow. The company completed a $100 million accelerated share repurchase in the quarter and approved a 50-cent-per-share dividend, highlighting its ongoing capital-return focus.
AI continues to feature prominently. Verisk noted solid interest in AI applications for forms management, fraud detection, and catastrophe modeling, even as the insurance sector tends to adopt new technologies methodically. Progress on product adoption and data-contributor growth will serve as key indicators for longer-term expansion.
My Take on Tickeron’s AI Screener
I often turn to Tickeron’s AI Screener when evaluating how companies like this stack up against peers on technical patterns, fundamentals, and volatility metrics. It helps surface relevant trade ideas quickly without sifting through endless data manually, which keeps my research process more efficient and focused on the metrics that matter most for long-term holdings.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
VRSK in upward trend: price rose above 50-day moving average on October 14, 2026
VRSK moved above its 50-day moving average on October 14, 2026 date and that indicates a change from a downward trend to an upward trend. In 30 of 45 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on VRSK as a result. In 44 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 53%.
The Moving Average Convergence Divergence (MACD) for VRSK just turned positive on October 08, 2026. Looking at past instances where VRSK's MACD turned positive, the stock continued to rise in 25 of 46 cases over the following month. The odds of a continued upward trend are 54%.
The 10-day moving average for VRSK crossed bullishly above the 50-day moving average on October 20, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 65%.
Following a +5.66% 3-day Advance, the price is estimated to grow further. Considering data from situations where VRSK advanced for three days, in 148 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 47%.
The Aroon Indicator entered an Uptrend today. In 142 of 276 cases where VRSK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 51%.
Bearish Trend Analysis
The 10-day RSI Indicator for VRSK moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 21 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VRSK declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.
VRSK broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 40 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. VRSK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-21.658) is normal, around the industry mean (13.159). P/E Ratio (30.392) is within average values for comparable stocks, (49.667). Projected Growth (PEG Ratio) (1.412) is also within normal values, averaging (2.814). Dividend Yield (0.010) settles around the average of (0.025) among similar stocks. P/S Ratio (7.899) is also within normal values, averaging (26.240).
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VRSK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of decision analytics and risk assessment services
Industry DataProcessingServices
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