Insurance data analytics provider Verisk Analytics (NASDAQ: VRSK) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 4.3% year on year to $806 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $3.22 billion at the midpoint. Its non-GAAP profit of $1.98 per share was 2.4% above analysts’ consensus estimates.

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Company Overview

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $3.14 billion in revenue over the past 12 months, Verisk is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale.

As you can see below, Verisk’s 1.6% annualized revenue growth over the last five years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Verisk’s annualized revenue growth of 6.3% over the last two years is above its five-year trend, suggesting some bright spots.

We can better understand the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 6.6% year-on-year growth. Because this number aligns with its reported revenue growth, we can see that foreign exchange has not had a meaningful impact on topline.

This quarter, Verisk grew its revenue by 4.3% year on year, and its $806 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 6.2% over the next 12 months, similar to its two-year rate. This projection is above the sector average and indicates its newer products and services will help sustain its recent top-line performance.

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Adjusted Operating Margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals.

Verisk has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average adjusted operating margin of 43.8%.

Analyzing the trend in its profitability, Verisk’s adjusted operating margin rose by 4.9 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, Verisk generated an adjusted operating margin profit margin of 46.9%, up 1.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Verisk’s EPS grew at 8% compounded annual growth rate over the last five years, higher than its 1.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of Verisk’s earnings can give us a better understanding of its performance. As we mentioned earlier, Verisk’s adjusted operating margin expanded by 4.9 percentage points over the last five years. On top of that, its share count shrank by 19.7%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Verisk, its two-year annual EPS growth of 8% is similar to its five-year trend, implying stable earnings.

In Q2, Verisk reported adjusted EPS of $1.98, up from $1.88 in the same quarter last year. This print beat analysts’ estimates by 2.4%. Over the next 12 months, Wall Street expects Verisk’s full-year EPS to grow 11.1% from $7.34 to $8.16.

Key Takeaways from Verisk’s Q2 Results

It was good to see Verisk beat analysts’ EPS expectations this quarter. On the other hand, its full-year EPS guidance slightly missed and its full-year revenue guidance was in line with Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 3% to $205.97 immediately after reporting.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).