10-Q · August 7, 2026
Gen delivered 6% year-over-year revenue growth to $1,336 million, with strong Trust-Based Solutions growth, higher net income of $215 million and $430 million of calculated free cash flow. However, gross margin fell to…
Earnings analysis · 10-Q
GEN earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Gen delivered Q2 FY27 revenue of $1.369 billion and EPS of $0.74, beating consensus estimates of $1.340 billion and $0.71, respectively. Cyber Safety Platform revenue was $858 million and Trust-Based Solutions revenue…
Read full summary
Gen delivered Q2 FY27 revenue of $1.369 billion and EPS of $0.74, beating consensus estimates of $1.340 billion and $0.71, respectively. Cyber Safety Platform revenue was $858 million and Trust-Based Solutions revenue was $511 million, while management raised FY27 revenue guidance to $5.465-$5.515 billion and EPS guidance to $2.93-$2.98. The principal offsets are substantial indebtedness of $8,185 million, $57 million of annualized interest sensitivity for a 100-basis-point SOFR move, and heightened AI, cybersecurity, funding, and Instacash regulatory risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.74
What stood out
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Revenue and EPS beat estimates
Q2 FY27 revenue was $1.369 billion, $29 million above the $1.340 billion consensus estimate, while EPS was $0.74 versus the $0.71 estimate, a $0.03 beat.
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Both segments drove growth
Both operating segments contributed to growth: Cyber Safety Platform revenue was $858 million and Trust-Based Solutions revenue was $511 million. Combined segment revenue was $1.369 billion.
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FY27 revenue outlook raised
Management raised FY27 non-GAAP revenue guidance to $5.465-$5.515 billion from $5.375-$5.475 billion, an increase of $90 million at the low end and $40 million at the high end.
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FY27 EPS outlook raised
FY27 non-GAAP EPS guidance increased to $2.93-$2.98 from $2.87-$2.97, raising the low end by $0.06 and the high end by $0.01.
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Meaningful repurchase capacity remains
The company had $1,823 million remaining under its share-repurchase authorization as of October 2, 2026, providing continued capital-return capacity.
What to watch
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Large debt and interest-rate exposure
Gen reported $8,185 million of outstanding indebtedness maturing in calendar years 2027 through 2033. The company also had $5,735 million of variable-rate debt; a hypothetical 100-basis-point SOFR increase would raise annual interest expense by $57 million.
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Funding and liquidity dependence
The company had $1,495 million available under its revolving credit facility, net of letters of credit, but warns that funding arrangements supporting loans and earned-wage advances may not be renewed or replaced on acceptable terms.
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AI regulation and execution risk
The filing identifies AI-related risks including inaccurate or biased outputs, intellectual-property claims, privacy and cybersecurity exposure, and evolving regulation. The EU AI Act entered into force on August 1, 2024, with broad applicability generally beginning after a two-year transition period.
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Increasing AI-enabled cyber threats
The filing expands cybersecurity risk to include agentic AI, which could enable attackers to manipulate autonomous systems into unauthorized actions, access sensitive information, or initiate malicious transactions.
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Instacash regulatory uncertainty
The filing states that Instacash and other earned-wage-access products remain subject to uncertain regulatory treatment, including whether they constitute extensions of credit, and that the company may need to pause, limit, or cease offering the product in certain states.
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Broadcom service dependency
The company remains dependent on Broadcom for engineering and threat-response services that are critical to many products; failure to deliver those services could cause significant business disruption.
Management's outlook
FY27 non-GAAP revenue guidance was raised to $5.465-$5.515 billion from $5.375-$5.475 billion, and non-GAAP EPS guidance was raised to $2.93-$2.98 from $2.87-$2.97. Q3 FY27 outlook is revenue of $1.365-$1.390 billion and EPS of $0.73-$0.75.
Earlier filings 4
10-K · May 21, 2026
Gen Digital Inc. reported solid growth with fiscal 2026 revenues reaching $5 billion, a 27% increase from the previous year, aided by the acquisition of MoneyLion, which contributed $823 million to revenue. The company…
10-Q · November 7, 2025
Gen Digital reported quarterly revenue of $1,220 million (three months ended October 3, 2025), up $246 million or 25.3% year-over-year versus $974 million a year earlier, driven by recent acquisitions and Trust‑Based…
10-K · May 16, 2024
Gen Digital’s 10-K frames strategy around building an integrated consumer Cyber Safety platform (security, identity, privacy) and scaling via omni-channel distribution, freemium, cross-sell/up-sell and retention. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.