Why Is Verisk (VRSK) Down 6.3% Since Last Earnings Report?

A month has gone by since the last earnings report for Verisk Analytics (VRSK). Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Verisk due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Verisk Analytics, Inc. before we dive into how investors and analysts have reacted as of late.

Verisk Q1 Earnings Surpass Estimates

Verisk Analytics, Inc reported first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.

VRSK’s adjusted earnings per share were $1.82, beating the Zacks Consensus Estimate of $1.76 by 3.4% and increasing 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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Verisk has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Verisk has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Verisk is part of the Zacks Business - Information Services industry. Over the past month, TransUnion (TRU), a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended March 2026 more than a month ago.

TransUnion reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +13.7%. EPS of $1.18 for the same period compares with $1.05 a year ago.

TransUnion is expected to post earnings of $1.18 per share for the current quarter, representing a year-over-year change of +9.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

TransUnion has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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

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