Verisk Earnings Surpass Estimates in Q2 on Insurance Growth

VeriskVRSK has reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter.

Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year. Organic constant-currency growth was 5.8%, supported by an 8% increase in underlying subscription revenues and growth across both Underwriting and Claims.

VRSK Posts Higher Insurance Revenues

Underwriting revenues increased 3.5% year over year to $569 million. On an organic constant-currency basis, revenues advanced 5.6%.

Growth reflected annual price increases tied to continued enhancements in the models and content supporting Verisk’s forms, rules and loss cost services. The company also benefited from sales of expanded catastrophe and risk solutions to new and existing customers.

Verisk Gains From Claims

Claims revenues rose 6.3% year over year to $237 million. Organic constant-currency growth was 6.1%, outpacing the reported growth rate of the Underwriting business.

The improvement was primarily driven by anti-fraud analytics, and property and restoration solutions. These offerings supported broader Insurance revenue growth as carriers continued using Verisk’s data and technology across underwriting and claims decisions.

VRSK Maintains Strong EBITDA Margin

Adjusted EBITDA increased 4.2% year over year to $463.6 million. On an organic constant-currency basis, adjusted EBITDA grew 7.4%, reflecting revenue growth and continued cost discipline.

The adjusted EBITDA margin was 57.5% compared with 57.6% in the prior-year quarter. Adjusted EBITDA expenses increased to $342.7 million from $327.8 million, while operating income rose to $363.7 million from $354.3 million.

Verisk Faces Pressure on GAAP Earnings

Net income declined 9.8% year over year to $228.6 million. The net income margin contracted to 28.4% from 32.8%, while diluted GAAP earnings fell 3.3% to $1.75 per share.

The decline reflected a higher effective tax rate, increased net interest expenses and legal fees connected with ongoing litigation. Net interest expenses increased to $52.8 million from $35.5 million, while the effective tax rate rose to 24.6% from 22.7%.

VRSK Delivers Strong Cash Flow Growth

Net cash provided by operating activities jumped 49.7% year over year to $366 million. The free cash flow increased 57.9% to $297.9 million despite capital expenditure rising 22% to $68.1 million.

The cash flow improvement was primarily driven by higher operating profit and the timing of certain vendor and tax payments. Verisk ended June with $551.4 million in cash and cash equivalents compared with $2.18 billion at the end of 2025.

Verisk Accelerates Capital Returns

The company entered a $200-million accelerated share repurchase program during the quarter. It received an initial delivery of 949,190 shares at an initial price of $179.10, representing roughly 85% of the aggregate purchase price.

In the first six months of 2026, Verisk funded aggregate share repurchases of $1.9 billion and received an initial delivery of 8.5 million shares at an average price of $186.32. The company had $800 million remaining under its repurchase authorization at the quarter-end.

Verisk Advances Data & AI Strategy

Management said that Verisk continues to invest in proprietary datasets and deploy advanced artificial intelligence technologies across those assets. The strategy is aimed at generating differentiated insights and strengthening value for insurance clients.

The company expects growth to return to levels consistent with its Investor Day targets during the second half of 2026. Verisk also approved another quarterly cash dividend of 50 cents per share, payable Sept. 30, to shareholders of record as of Sept. 15.

VRSK Reaffirms 2026 Outlook

Verisk maintained its 2026 revenue guidance of $3.19-$3.24 billion. Management expects adjusted EBITDA of $1.79-$1.83 billion and an adjusted EBITDA margin of 56-56.5%.

Diluted adjusted earnings are projected between $7.45 and $7.75 per share. The company expects a tax rate of 23-26%, capital expenditure of $260-$280 million and interest expenses of $190-$200 million.

VRSK carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

IQVIA Holdings Inc. IQV reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%.

Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%.

Waste Connections, Inc.WCN reported impressive second-quarter 2026 results.

WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter.

Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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