Verisk Analytics Q3 2026: Fourth Straight EPS Beat With Guidance Held

Verisk Analytics reported adjusted diluted EPS of $1.96 for the third quarter of 2026, beating the $1.92 consensus estimate. Revenue came in at $809 million, a 5.3% year-over-year increase that cleared analyst expectations. The quarter marks the fourth consecutive period in which the insurance data analytics company has beaten consensus EPS, a streak that stretches back to Q4 2024.

Subscription revenue grew 8.2% on an organic constant-currency basis, inside a broader organic constant-currency revenue gain of 7.4% for the quarter. The Underwriting segment generated $568 million in revenue, up 4.8%, lifted by annual price increases tied to enhanced underwriting models and expanded catastrophe and risk solutions. The Claims segment posted $241 million in revenue, up 6.6%, driven by strong anti-fraud analytics adoption and growth in property and restoration solutions.

Profitability improved alongside the top-line growth. Adjusted EBITDA reached $459 million at a 56.7% margin, up from 55.8% a year earlier. A lower average diluted share count of 129.2 million, compared with 139.9 million in the year-ago period, also contributed to the per-share beat. Verisk completed a $100 million accelerated share repurchase program during the quarter, receiving 2.0 million shares at an average price, net of discount, of $181.76, and $700 million remained under its repurchase authorization as of September 30.

Management held its full-year 2026 outlook intact, guiding for total revenue of $3.19 billion to $3.24 billion and diluted adjusted EPS of $7.45 to $7.75. The unchanged guidance alongside a fourth consecutive beat indicates the subscription model is tracking in line with Investor Day targets. With meaningful repurchase capacity still available, the share count continues declining through year-end.

A few items are worth watching. Operating cash flow fell 33.8% and free cash flow dropped 40.5%, with management citing collection timing, higher cash taxes, and increased interest payments. Net income declined 2.8% year over year to $219.2 million, partly reflecting a higher effective tax rate of 25.7% versus 25.3% a year ago. Verisk also carries a stockholders' deficit of $1.1 billion, meaning the buyback program is being funded through leverage rather than a balance sheet in a net cash position.