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Verisk Q1 Earnings Top Estimates on Growth in Underwriting, Claims
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Key Takeaways
VRSK reported Q1 EPS of $1.82 and revenues of $782.6M, both beating estimates and rising y/y.
VRSK saw growth in underwriting and claims, driven by pricing actions and anti-fraud analytics gains.
VRSK expanded the EBITDA margin to 55.9% and reaffirmed its 2026 revenue and earnings guidance.
Verisk Analytics, Inc. (VRSK - Free Report) has reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
Revenue came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year. Organic constant-currency revenue growth was 4.7%, supported by continued momentum across the Insurance business.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk’s top-line growth was driven by both operating areas within Insurance. Underwriting revenues increased 3.8% year over year to $552 million, while Claims revenues rose 4.3% to $231 million.
On an organic constant-currency basis, Underwriting growth accelerated to 5.3% and Claims increased 3.4%. Management attributed the Underwriting performance primarily to price increases tied to enhancements in forms, rules and loss cost solutions, alongside increased sales to new clients and expanded renewals with existing clients.
Verisk Gains in Claims on Fraud Analytics Strength
VRSK’s Claims growth reflected improved value realization and customer additions. The company cited improved value realization in its anti-fraud analytics and sales to new customers within casualty solutions as key contributors.
These gains were partly offset by modest declines in property and restoration solutions. Even with that pressure, Claims remained a meaningful contributor to consolidated revenue growth for the quarter.
VRSK Expands Profitability on Operating Leverage
Verisk generated stronger profitability as revenue growth flowed through the model. Adjusted EBITDA increased 5% year over year to $438 million and the adjusted EBITDA margin improved to 55.9% from 55.3% a year ago.
Net income was $234.2 million, up 0.8% year over year. The company said that the increase was mainly driven by operating leverage on revenue growth and cost discipline, partially offset by a higher effective tax rate and higher net interest expenses.
Verisk Cash Flow Declines on Tax, Interest Timing
VRSK’s cash generation was weaker year over year due to timing items. Net cash provided by operating activities was $390.4 million, down 12.2%, while the free cash flow declined 16.5% to $326.4 million.
The company linked the decrease primarily to a tax refund received in the prior year that did not recur, as well as higher interest payments. It noted that the increase in interest payments reflected higher debt balances during the quarter, partly offset by higher interest income earned on cash.
VRSK Accelerates Shareholder Returns in Q1
Verisk stepped up capital return activity in the quarter. It paid out a cash dividend of 50 cents per share on March 31, 2026, and also executed a $1.5-billion accelerated share repurchase program.
As part of that accelerated repurchase, the company received an initial delivery of 6,986,302 shares at an initial price of $182.50, representing about 85% of the aggregate purchase price. Separately, it repurchased $126.1 million of shares in the open market and received 583,042 shares at an average price of $216.24. VRSK ended the quarter with $1 billion remaining under its share repurchase authorization.
Verisk Keeps 2026 Outlook Intact
Verisk has reaffirmed its 2026 guidance. The company expects total revenues of $3.19 billion to $3.24 billion, and adjusted EBITDA of $1.79 billion to $1.83 billion, implying an adjusted EBITDA margin of 56% to 56.5%.
Management maintained diluted adjusted earnings per share guidance of $7.45 to $7.75, and expects a tax rate of 23% to 26%. Capital expenditure is projected at $260 million to $280 million, while fixed asset depreciation and amortization is expected to be $270 million to $290 million, with intangible amortization of $60 million.
FDS’s earnings per share of $4.46 beat the consensus mark by 2.1% and increased 4.2% from the year-ago quarter. Revenues of $611 million beat the Zacks Consensus Estimate by a slight margin and rose 7.1% from the year-ago quarter.
ACN registered earnings of $2.93 per share, beating the Zacks Consensus Estimate by 2.4%. The metric increased 3.9% from the year-ago quarter. Accenture’s total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.2% on a year-over-year basis.
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Verisk Q1 Earnings Top Estimates on Growth in Underwriting, Claims
Key Takeaways
Verisk Analytics, Inc. (VRSK - Free Report) has reported first-quarter 2026 diluted adjusted earnings per share of $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4%. The figure increased 5.2% from the year-ago quarter.
Revenue came in at $782.6 million, topping the consensus mark of $775.9 million by 0.9% and rising 3.9% year over year. Organic constant-currency revenue growth was 4.7%, supported by continued momentum across the Insurance business.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
VRSK Posts Higher Insurance Revenues
Verisk’s top-line growth was driven by both operating areas within Insurance. Underwriting revenues increased 3.8% year over year to $552 million, while Claims revenues rose 4.3% to $231 million.
On an organic constant-currency basis, Underwriting growth accelerated to 5.3% and Claims increased 3.4%. Management attributed the Underwriting performance primarily to price increases tied to enhancements in forms, rules and loss cost solutions, alongside increased sales to new clients and expanded renewals with existing clients.
Verisk Gains in Claims on Fraud Analytics Strength
VRSK’s Claims growth reflected improved value realization and customer additions. The company cited improved value realization in its anti-fraud analytics and sales to new customers within casualty solutions as key contributors.
These gains were partly offset by modest declines in property and restoration solutions. Even with that pressure, Claims remained a meaningful contributor to consolidated revenue growth for the quarter.
VRSK Expands Profitability on Operating Leverage
Verisk generated stronger profitability as revenue growth flowed through the model. Adjusted EBITDA increased 5% year over year to $438 million and the adjusted EBITDA margin improved to 55.9% from 55.3% a year ago.
Net income was $234.2 million, up 0.8% year over year. The company said that the increase was mainly driven by operating leverage on revenue growth and cost discipline, partially offset by a higher effective tax rate and higher net interest expenses.
Verisk Cash Flow Declines on Tax, Interest Timing
VRSK’s cash generation was weaker year over year due to timing items. Net cash provided by operating activities was $390.4 million, down 12.2%, while the free cash flow declined 16.5% to $326.4 million.
The company linked the decrease primarily to a tax refund received in the prior year that did not recur, as well as higher interest payments. It noted that the increase in interest payments reflected higher debt balances during the quarter, partly offset by higher interest income earned on cash.
VRSK Accelerates Shareholder Returns in Q1
Verisk stepped up capital return activity in the quarter. It paid out a cash dividend of 50 cents per share on March 31, 2026, and also executed a $1.5-billion accelerated share repurchase program.
As part of that accelerated repurchase, the company received an initial delivery of 6,986,302 shares at an initial price of $182.50, representing about 85% of the aggregate purchase price. Separately, it repurchased $126.1 million of shares in the open market and received 583,042 shares at an average price of $216.24. VRSK ended the quarter with $1 billion remaining under its share repurchase authorization.
Verisk Keeps 2026 Outlook Intact
Verisk has reaffirmed its 2026 guidance. The company expects total revenues of $3.19 billion to $3.24 billion, and adjusted EBITDA of $1.79 billion to $1.83 billion, implying an adjusted EBITDA margin of 56% to 56.5%.
Management maintained diluted adjusted earnings per share guidance of $7.45 to $7.75, and expects a tax rate of 23% to 26%. Capital expenditure is projected at $260 million to $280 million, while fixed asset depreciation and amortization is expected to be $270 million to $290 million, with intangible amortization of $60 million.
VRSK carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
FactSet (FDS - Free Report) reported impressive results for second-quarter fiscal 2026.
FDS’s earnings per share of $4.46 beat the consensus mark by 2.1% and increased 4.2% from the year-ago quarter. Revenues of $611 million beat the Zacks Consensus Estimate by a slight margin and rose 7.1% from the year-ago quarter.
Accenture plc (ACN - Free Report) posted impressive second-quarter fiscal 2026 results.
ACN registered earnings of $2.93 per share, beating the Zacks Consensus Estimate by 2.4%. The metric increased 3.9% from the year-ago quarter. Accenture’s total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.2% on a year-over-year basis.