VeriSign (VRSN) stock surged 5.22% in pre-market trading on Friday, following a trifecta of positive news for the internet infrastructure services provider. The company reported better-than-expected second-quarter earnings, announced its first-ever quarterly dividend, and received a price target boost from Citigroup.

VeriSign's Q2 2025 earnings report, released after market close on Thursday, showed GAAP earnings per share of $2.21, surpassing analyst expectations by $0.01. While GAAP revenue of $410 million slightly missed the consensus estimate of $410.97 million, the company demonstrated strong profitability with improvements in both operating and net income compared to the previous year. The total base of .com and .net domain registrations saw a marginal decline of 0.1% year-over-year, raising some questions about organic growth.

In a significant move to enhance shareholder returns, VeriSign initiated its first-ever quarterly dividend at $0.77 per share. This decision signals management's confidence in the company's cash flow stability and marks a diversification in its capital return strategy. Additionally, Citigroup adjusted its price target on VeriSign to $337 from $330, maintaining a Buy rating on the stock. This upgrade likely contributed to the positive sentiment among investors, further fueling the stock's pre-market rally.