Verisk Q2 FY2026: revenue up 4.3%, adjusted EPS $1.98, outlook reaffirmed
Verisk's second quarter delivered the growth story it promised but not the profit story: revenue rose 4.3% to $806.3 million and adjusted EPS of $1.98 nudged past the $1.9736 consensus, while GAAP net income fell 9.8% to $228.6 million. Read the quarter as a cash-generating subscription business carrying a heavier balance sheet: free cash flow jumped 57.9% even as interest, taxes and litigation costs ate into reported earnings. Verdict: Neutral.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $1.75 fell 3.3% from $1.81, while adjusted EPS of $1.98 rose 5.3% from $1.88. The adjusted number barely beat the $1.9736 consensus, so there was no real earnings surprise here. The gap between GAAP and adjusted is mostly $18.7 million of acquisition-related fees, a $2.0 million litigation reserve and $6.5 million of equity-method investment losses.
Revenue was $806.3 million, up 4.3% as reported and 5.8% on an organic constant currency basis, with Underwriting at $569.0 million and Claims at $237.0 million. Both segments grew, but Claims was faster at 6.3% versus 3.5% for Underwriting. Gross margin improved to 71.1% from 70.3% a year earlier, which tells you pricing and cost discipline are doing their job.
Verisk reaffirmed its full-year 2026 outlook: revenue of $3.19 billion to $3.24 billion, adjusted EBITDA of $1.79 billion to $1.83 billion at a 56.0% to 56.5% margin, and diluted adjusted EPS of $7.45 to $7.75. At the $3.215 billion revenue midpoint, the company is signaling no change to its second-half plan. That is reassuring in a quarter when reported profit fell 9.8%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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