Here's Why You Should Retain VRSK Stock in Your Portfolio Now

The company’s third-quarter 2026 earnings are expected to increase 11.6% year over year. Its 2026 and 2027 earnings are projected to rise 7.1% and 13.5%, respectively. Revenues are expected to grow 5% in 2026 and 6.6% in 2027.

Factors That Bode Well for VRSK

Verisk’s growth is primarily driven by its subscription model. Higher annualized recurring revenues with direct written premium growth positively impact the overall financial performance. Moreover, rising demand for Software-as-a-Service (SaaS) products supports growth in VRSK’s subscribed offerings.

During the second quarter of 2026, Underwriting revenues increased 3.5% year over year to $569 million, while Claims revenues rose 4.3% to $231 million. Continued enhancements in the models and content supporting Verisk’s forms, rules and loss cost services and the expansion of catastrophe and risk solutions to new as well as existing customers have started to benefit the company.

VRSK remains focused on innovation and acquisitions. It continues to invest in global companies to enhance its data and analytical capabilities. Recently, the company acquired SuranceBay, a leading provider of producer licensing, onboarding, appointment and compliance solutions, which is expected to expand VRSK’s life and annuity offerings.

The company is witnessing growing customer demand for artificial intelligence (AI)-enabled underwriting, fraud detection and catastrophe modeling solutions. The company announced an agreement with KatRisk on its Model Exchange to strengthen its open catastrophe risk modeling ecosystem by enabling insurers and reinsurers with transparent and defensible climate-driven risk insights.

VRSK has demonstrated a strong commitment to its shareholders through consistent dividend payments and share repurchases. The company paid dividends of $196.8 million, $221.3 million and $251.3 million, while repurchasing shares worth $2.8 billion, $1 billion and $624 million in 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors.

Watch Out for These Risks to VRSK Stock

Verisk faces intensifying pressure from soaring operating expenses, which weigh heavily on profitability and the company’s strategic outlook. Sustained cost growth erodes margins and limits VRSK’s ability to invest in strategic initiatives, making expense management difficult. The company reported a decline in net income, which was driven by increased net interest expenses and legal fees connected with ongoing litigation.

The company’s business model revolves around a huge amount of data, making it susceptible to security breaches in its facilities, computer networks and databases. Dependence on external sources for data, as well as data theft and misuse by third-party contractors, can lead to contractual and pricing issues with data suppliers, loss of business and harm to the company’s overall well-being.

Verisk currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

A couple of better-ranked stocks in the broader Zacks Business Services sector are Veralto Corporation VLTO and Thomson Reuters Corporation TRI.

Veralto Corporation carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 8.4%. VLTO delivered a trailing four-quarter earnings surprise of 6.6%, on average.

Thomson Reuters also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 15.3%. TRI’s earnings beat estimates in each of the trailing four quarters, with the surprise being 2.7%, on average.

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

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