Verisk Analytics, Inc. (NASDAQ: VRSK) has entered into accelerated share repurchase agreements with HSBC Bank USA and Wells Fargo Bank to buy back an aggregate of $1.5 billion of its common stock. The agreements allow the company to repurchase shares at a discount to the average daily volume‑weighted price, with final settlement expected no later than the end of the fiscal third quarter ending September 30, 2026.
The accelerated buyback is part of Verisk’s broader capital allocation strategy, which has included significant share repurchases and dividend payments in recent quarters. The program will leave approximately $1.0 billion available under the company’s existing authorized share repurchase program, bringing the total authorized buyback amount to $2.5 billion.
Verisk’s capital allocation decisions are driven by a strong balance sheet and robust cash generation. In the fourth quarter of fiscal 2025, the company reported revenue of $779 million, up 5.9% year‑over‑year, and diluted GAAP earnings per share of $1.42, a 1% decline from the prior year but a $0.22 beat over the consensus estimate of $1.60. Net income fell 6.2% to $197 million, reflecting the impact of the sale of Verisk Marketing Solutions, which the CFO said “presents an $0.11 headwind to EPS.”
Management highlighted the strength of the quarter, noting that “Verisk delivered a solid fourth quarter result, capping off another year of growth in line with our long‑term financial targets.” The company also increased its quarterly dividend by 11% to $0.50 per share, underscoring its commitment to returning capital to shareholders while maintaining liquidity for strategic initiatives.
For fiscal 2026, Verisk has guided revenue of $3.19 billion to $3.24 billion and adjusted earnings per share of $7.45 to $7.75. The guidance is slightly below consensus estimates, reflecting management’s caution about near‑term headwinds. The CFO explained that “reported revenue expected to decline by a low single‑digit percentage versus Q1 2025. The drag stems from the VMS divestiture, a lower starting point in property estimating after a light weather year, and a work stoppage on a government contract, though sequential and normalized growth are expected to remain positive.”
Investors have responded favorably to the earnings beat and the accelerated share repurchase, which signals confidence in Verisk’s financial strength and its ability to support share price and earnings per share. The ASR, combined with the dividend increase, reinforces the company’s competitive moat in insurance data analytics and its focus on AI‑driven product innovation.
The accelerated share repurchase demonstrates Verisk’s commitment to returning capital to shareholders while preserving liquidity for future growth opportunities, including continued investment in AI and proprietary data assets that underpin its market leadership.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.