Verisk Analytics’ Q2 Earnings Preview

• RBC Capital sets a price target of $250 for Verisk Analytics (NASDAQ:VRSK), indicating a potential 20.19% increase.
• Verisk's third-quarter revenue of $768 million falls short of expectations, but non-GAAP net income slightly exceeds estimates at $241 million.
• Despite recent stock decline and mixed financial results, RBC Capital's outlook suggests confidence in Verisk's growth potential.

Verisk Analytics (NASDAQ:VRSK) is a data analytics and risk assessment company that provides services to clients in various industries, including insurance, energy, and financial services. The company is known for its data-driven insights and solutions that help businesses make informed decisions. Verisk competes with other analytics firms like Moody's Analytics and S&P Global in the data analytics sector.

On October 30, 2025, RBC Capital set a price target of $250 for VRSK, suggesting a potential price increase of approximately 20.19% from its then-current price of $208. This optimistic outlook comes despite a recent decline in Verisk's stock, which fell over 10% after the release of its third-quarter results. The S&P 500 index remained flat during this period, highlighting the specific challenges faced by Verisk.

Verisk reported third-quarter revenue of $768 million, a nearly 6% increase from the same period in 2024. However, this figure fell short of analysts' expectations, who had anticipated revenue exceeding $776 million. Despite this, Verisk's non-GAAP net income showed a slight increase, reaching just under $241 million, or $1.72 per share, slightly above the consensus estimate of $1.70 per share.

CEO Lee Shavel emphasized the company's strategic engagement across the industry as a driver for organic business expansion. Despite these efforts, the mixed financial results led to investor dissatisfaction and a subsequent stock sell-off. Currently, VRSK is priced at $212.01, reflecting a 1.93% increase or $4.01. The stock has fluctuated between $210.01 and $214.32 today.

Over the past year, VRSK has seen a high of $322.92 and a low of $196.995, with a market capitalization of approximately $29.62 billion. The trading volume for the day is 443,389 shares on the NASDAQ exchange. Despite recent challenges, RBC Capital's price target suggests confidence in Verisk's potential for growth.

• John Mazzoni from Seaport Global sets a price target of $280 for Verisk Analytics (NASDAQ:VRSK), indicating an 11.33% potential upside.
• Verisk's focus on AI-driven tools and fraud detection is expected to drive future growth, with revenues projected to grow by 7.8% in 2025 and 9.3% in 2026.
• The company has returned $250 million to shareholders through dividends and buybacks in Q1 2025, with an additional $1.4 billion authorized for future returns.

Verisk Analytics (NASDAQ:VRSK) is a leading data analytics and risk assessment company, primarily serving the insurance, energy, and financial services sectors. The company is known for its innovative solutions that help clients make informed decisions. Verisk competes with other analytics firms like Moody's and S&P Global, but it stands out due to its focus on AI-driven tools and fraud detection.

On October 1, 2025, John Mazzoni from Seaport Global set a price target of $280 for Verisk, suggesting a potential upside of 11.33% from its current trading price of $251.51. This optimistic outlook is supported by Verisk's strategic advancements in AI and technology, which are expected to drive future growth and enhance its partnerships with insurers.

Despite a 7.6% decline in its stock price this year, Verisk has outperformed its industry's 22.6% decline. The company's focus on AI-driven tools and fraud detection upgrades is expected to improve efficiency and accuracy, contributing to its long-term promise. Verisk's revenues are projected to grow by 7.8% in 2025 and 9.3% in 2026, with earnings expected to increase by 5% in 2025 and 10% in 2026.

Verisk has demonstrated a commitment to returning value to shareholders, having returned $250 million through dividends and buybacks in the first quarter of 2025. An additional $1.4 billion is still authorized for future returns, indicating a strong financial position. The company's long-term earnings per share growth rate is estimated at 10.13%, reflecting its potential for sustained growth.

However, Verisk faces challenges with elevated expenses, which could impact its profitability. The stock has fluctuated between a low of $246.38 and a high of $253.35 today, with a market capitalization of approximately $35.14 billion. Despite these challenges, Verisk's strategic initiatives, such as the Commercial GenAI Underwriting tool, position it as a strong player in the analytics industry.

RBC Capital analysts provided their views on Verisk Analytics (NASDAQ:VRSK) ahead of the company’s upcoming Q1/23 earnings, scheduled to be reported on May 3.

The analysts expect organic growth to improve throughout fiscal 2023 as the headwinds in the auto underwriting and marketing moderate, workers' compensation improves, and robust pricing tailwinds above the premium growth.

According to the analysts, the recent investor day reinforced the results-driven culture under the new management team, focusing on growth while balancing investments.

The analysts conservatively estimate Q1/23 revenue of $629 million, slightly below the Street estimate of $633 million, as their Underwriting & Ratings revenues of $449 million are in line with the Street but their Claims revenue estimate of $180 million is modestly below the Street estimate of $183 million. The analysts expect Q1 EBITDA of $317 million and EPS of $1.15, below the Street estimate of $323 million and $1.19, due to higher stranded costs from the Energy divestiture.

RBC Capital analysts provided their views on Verisk Analytics, Inc. (NASDAQ:VRSK) upcoming Investor Day on March 14, noting that the company could tighten the 2024 margin targets of 53-56% to the high end. In addition, the company will likely provide color on lowering the capital intensity over the midterm. The Investor Day will focus on high-growth initiatives while balancing investment and margin.

The analysts believe the company should provide incremental disclosures to get investors comfortable with the sustainability of the revenue growth. In particular, revenue split up by high-growth businesses (namely Life, Marketing, Auto, International Specialty Insurance, Climate, and Cyber), core businesses (ISO, ClaimsSearch), and offerings growing in line with the company average (Xactware, AIR) will be helpful. Investors are looking for details on the company's plans to expand high-growth businesses as a percentage of overall revenues.

The company released its Q4 results earnings last week, with both EPS of $1.43 and revenue of $630.4 million coming in better than expected.

Analysts at RBC Capital provided a 2022 preview for Verisk Analytics, Inc. (NASDAQ:VRSK), stating that early indications of FY22 strong direct written premium growth suggest durable insurance tailwinds.

According to the analysts, energy revenue growth should improve in FY22 by lapping investment banking client headwinds and sustained momentum driven by stable oil prices.

The analysts expect flattish margins in FY22 as operating leverage is offset by higher T&E, hiring, and moderating Cloud headwinds. RBC Capital believes the company will likely divest the Financial Services business but retain the Energy business given the strategic fit and the potential dilution from the deal.

Analysts at RBC Capital provided a 2022 preview for Verisk Analytics, Inc. (NASDAQ:VRSK), stating that early indications of FY22 strong direct written premium growth suggest durable insurance tailwinds.

According to the analysts, energy revenue growth should improve in FY22 by lapping investment banking client headwinds and sustained momentum driven by stable oil prices.

The analysts expect flattish margins in FY22 as operating leverage is offset by higher T&E, hiring, and moderating Cloud headwinds. RBC Capital believes the company will likely divest the Financial Services business but retain the Energy business given the strategic fit and the potential dilution from the deal.