Insurance data analytics provider Verisk Analytics (NASDAQ: VRSK) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 3.9% year on year to $782.6 million. The company expects the full year’s revenue to be around $3.22 billion, close to analysts’ estimates. Its non-GAAP profit of $1.82 per share was 4.7% 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

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $3.10 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 sales grew at a sluggish 1.9% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Verisk’s annualized revenue growth of 6.5% 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 reported modest year-on-year revenue growth of 3.9% but beat Wall Street’s estimates by 1.3%.

Looking ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months, similar to its two-year rate. Despite the slowdown, this projection is above the sector average and suggests the market is forecasting some success for its newer products and services.

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Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

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 43.4%.

Looking at the trend in its profitability, Verisk’s adjusted operating margin rose by 5.8 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q1, Verisk generated an adjusted operating margin profit margin of 47.4%, up 3.5 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 7.2% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 1.9% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Verisk’s earnings to better understand the drivers of its performance. As we mentioned earlier, Verisk’s adjusted operating margin expanded by 5.8 percentage points over the last five years. On top of that, its share count shrank by 17.8%. 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 shorter period to see if we are missing a change in the business.

For Verisk, its two-year annual EPS growth of 9.3% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point.

In Q1, Verisk reported adjusted EPS of $1.82, up from $1.73 in the same quarter last year. This print beat analysts’ estimates by 4.7%. Over the next 12 months, Wall Street expects Verisk’s full-year EPS of $7.24 to grow 9.5%.

Key Takeaways from Verisk’s Q1 Results

It was good to see Verisk beat analysts’ revenue and EPS expectations this quarter. Looking ahead, the company reaffirmed previously-provided guidance for full-year revenue and EPS, showing that the business remains on track. Overall, this print had some key positives. The stock traded up 2.9% to $181.74 immediately after reporting.

Big picture, is Verisk a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).