VeriSign (VRSN) shares tumbled 5.99% in after-hours trading on Thursday, following the release of its second-quarter 2025 financial results. The sharp decline came as a surprise to many, given that the company's earnings largely met analysts' expectations.

The internet infrastructure service provider reported earnings per share (EPS) of $2.21, slightly surpassing the $2.20 forecast by analysts polled by FactSet. Revenue for the quarter ended June 30 came in at $409.9 million, up from $387.1 million a year earlier, but marginally below the $411.0 million analysts had anticipated. Net income for the quarter stood at $207.4 million.

Despite the generally in-line results, investors appeared to react negatively to the report. The significant stock drop suggests that market participants may have been anticipating stronger results or more optimistic future guidance. It's possible that concerns about the company's growth trajectory or competitive position in the evolving internet infrastructure landscape could be contributing to the bearish sentiment. As the dust settles on this earnings report, investors will be closely watching for any additional insights or forward-looking statements from VeriSign's management to better understand the company's prospects and the reasons behind the market's harsh reaction.