Gen Digital Stock Earnings Reports

Gen reported a very strong Q2 FY2026 with record revenue of just over $1.2B (up 25% YoY) and non-GAAP EPS of $0.62 (up 15% YoY). On a pro forma basis (including MoneyLion in the prior year) revenue grew 10%. Key drivers: exceptional MoneyLion growth (≈50% this quarter), broad-based strength across Norton, Avast and LifeLock, expanding partner channels, and early traction from new AI-driven features (Norton Genie Pro, Scam Guardian, Norton Money). Segment performance was robust: Cyber Safety bookings +5% with a ~61% segment margin; Trust‑Based Solutions revenue +25% pro forma with a ~30% segment margin. Gen is maintaining high overall profitability (non-GAAP operating margin ~51%) while investing in AI, data and platform capabilities. Customers increased to ~77M. Cash generation remains strong (YTD operating cash flow $525M, free cash flow $512M), ending cash $701M with $2.2B total liquidity; net leverage improved to 3.2x EBITDA and the company paid a $0.125 quarterly dividend. Management raised FY26 revenue guidance to $4.92B–$4.97B (now implying ~25% reported growth) and non‑GAAP EPS to $2.51–$2.56, and reiterated disciplined, balanced capital allocation (deleveraging, opportunistic buybacks, dividend). Investors should note the strategic emphasis on: (1) cross‑sell and revenue synergies from MoneyLion integration (marketplace and embedded financial wellness), (2) AI as both product differentiator and operational efficiency driver, and (3) faster growth of partner channels. Risks called out: forward‑looking guidance assumes current FX rates and macro sensitivity remains a factor.