Verisk posts slower-than-usual quarterly growth

Verisk reported first quarter 2026 results with steady growth, supported by subscriptions and ongoing demand for data and AI-driven tools, though performance came in slightly below its usual pace.

Revenue reached $783 million, up 4% year over year, while adjusted EPS of $1.82 beat expectations. Organic growth was 4.7%, with underwriting up 5.3% and claims up 3.4%. Margins improved, with adjusted EBITDA reaching 55.9%.

Here are the five takeaways:

1. Growth is steady, but not peak
Management described the quarter as slightly below typical levels, citing lower weather-related claims, tough comparisons to a strong 2025, and a temporary government contract pause. “So while this quarter’s performance is modestly below our typical growth levels, we have confidence that the resolution of these shortterm factors and continued core growth momentum will result in a gradual improvement in revenue growth as we move through the year.”

2. Subscriptions continue to carry the business
Subscription revenue, which makes up 84% of total revenue, grew 7%, building on double-digit growth last year—highlighting strong retention and recurring demand.

3. AI is driving client conversations
Verisk is seeing rising demand for its data as insurers build AI capabilities. It recently won a mandate with a global insurer for next-gen underwriting, though sales cycles are getting longer due to governance and contracting complexity. “Verisk was the winner of a competitive RFP process to be the strategic partner of a global insurance firm to support the creation of a next-generation digitally native underwriting entity.”

4. New products gaining traction
Aerial imagery has grown over 30% in two years, and newer tools like digital media forensics—used to detect fraud in images and documents—are expanding, with a sixth top-10 carrier added this quarter.

5. Capital return remains a priority
The company launched a $1.5 billion share buyback, increased its dividend by 11%, and continues to operate within its target leverage range.