Verisk, a New Jersey-based insurance data analytics company, reported fourth-quarter earnings that surpassed Wall Street predictions, driving shares up nearly 10% in pre-market trading. The strong performance came despite challenges from reduced weather activity and a smaller federal contract.
A New Jersey insurance analytics company delivered better-than-expected fourth-quarter earnings results Wednesday, boosting its stock price nearly 10% in early trading.
Verisk, which specializes in data analytics for the insurance industry, credited consistent demand for its services as insurers rely more heavily on data-driven solutions for underwriting, claims management, fraud detection, and operational improvements.
The strong quarterly performance occurred despite facing some obstacles, including minimal weather-related activity and a decrease in federal government contract work that slowed overall growth.
Despite Wednesday’s gains, Verisk shares have dropped approximately 21% year-to-date as investors worry about artificial intelligence potentially disrupting traditional information services companies.
Founded in 1971 as Insurance Services Office to collect industry data and assist insurers with regulatory compliance, Verisk has evolved into a major analytics provider.
Financial analysts believe the company faces minimal AI-related risks because it operates using exclusive datasets contributed directly by insurance companies, combined with deeply embedded processes within the industry.
Looking ahead to 2026, Verisk projects adjusted earnings per share ranging from $7.45 to $7.75, slightly below analyst expectations of $7.71 according to LSEG data.
The company anticipates total revenue between $3.19 billion and $3.24 billion for 2026, compared to analyst projections of $3.28 billion.
Management announced an expanded share buyback program worth $2.5 billion, with plans to execute $1.5 billion through an accelerated repurchase initiative in the coming months.
Fourth-quarter underwriting revenue increased 8.7% compared to the same period last year. Overall revenue climbed 5.9% to $778.8 million, surpassing analyst estimates of $773.6 million.
Adjusted earnings per share reached $1.82 for the quarter, beating Wall Street expectations of $1.61.
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