We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gen Digital Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
Read MoreHide Full Article
Key Takeaways
Gen Digital's Q2 earnings and revenues beat estimates, with EPS up 14.8% year over year.
Revenue growth was fueled by rising AI-powered scams and demand for Genie Scam Protection.
Gen Digital raised its fiscal 2026 revenue outlook to $4.92-$4.97B, reflecting sustained momentum.
Gen Digital Inc. (GEN - Free Report) reported second-quarter fiscal 2026 results, wherein both revenues and earnings beat the Zacks Consensus Estimate. Gen Digital reported non-GAAP earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.64%. The figure improved 14.8% year over year.
In the trailing four quarters, GEN’s earnings surpassed the Zacks Consensus Estimate thrice, while matching once, delivering an average surprise of 2.55%.
Gen Digital’s first-quarter non-GAAP revenues came in at $1.22 billion, which rose 25.3% year over year and beat the Zacks Consensus Estimate by 2.3%. The strong revenue growth was due to escalating AI-powered scams, ransomware, and impersonation threats fueling demand for Gen Digital’s AI-driven cyber safety solutions, including Genie Scam Protection.
GEN’s Q2 in Details
Gen Digital’s Cyber Safety revenues amounted to $814 million in the fiscal second quarter, up 3% year over year. Revenues of its Trust-Based Solutions segment increased 119% to $406 million. Direct Customer revenues rose 17% year over year to $1.01 billion, and Partner revenues improved 88% to $210 million.
Gen Digital Inc. Price, Consensus and EPS Surprise
The quarterly bookings advanced 27% year over year to $1.22 billion. Gen Digital’s average direct customer count increased to 77 million, up from 67 million in the year-ago quarter and 76 million in the previous quarter.
The non-GAAP gross profit grew 22% year over year to $1.021 billion in the second quarter. However, the gross margin contracted 240 basis points (bps) to 83.7%.
Non-GAAP operating expenses increased to $398 million, up 46% year over year. As a percentage of revenues, non-GAAP operating expenses were 32.6%, up 5 points year over year.
The non-GAAP operating income in the second quarter of fiscal 2026 totaled $623 million, up 10% year over year. The non-GAAP operating margin was 51.1%, down 710 bps year over year.
Gen Digital’s Balance Sheet & Cash Flow
Gen Digital exited the second quarter with cash and cash equivalents of $701 million, down from $828 million in the previous quarter. The long-term debt was $8.421 billion, down from $8.963 billion in the prior quarter.
In the second quarter of fiscal 2026, the company generated operating cash flow of $116 million and free cash flow of $107 million. Gen Digital paid out $77 million in dividends during the quarter and repaid $169 million of debt, with no share repurchases in the period.
Gen Digital Revises Guidance for 2026
For the third quarter of fiscal 2026, Gen Digital anticipates revenues between $1.22 billion and $1.24 billion. The company projects non-GAAP earnings between 62 cents and 64 cents in the fiscal third quarter.
For fiscal 2026, Gen Digital now projects revenues in the band of $4.92-$4.97 billion, up from the previously guided range of $4.8-$4.9 billion. It now anticipates earnings per share between $2.51 and $2.56 compared with the earlier guidance of $2.49-$2.56.
The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.
The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.
The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gen Digital Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
Key Takeaways
Gen Digital Inc. (GEN - Free Report) reported second-quarter fiscal 2026 results, wherein both revenues and earnings beat the Zacks Consensus Estimate. Gen Digital reported non-GAAP earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.64%. The figure improved 14.8% year over year.
In the trailing four quarters, GEN’s earnings surpassed the Zacks Consensus Estimate thrice, while matching once, delivering an average surprise of 2.55%.
Gen Digital’s first-quarter non-GAAP revenues came in at $1.22 billion, which rose 25.3% year over year and beat the Zacks Consensus Estimate by 2.3%. The strong revenue growth was due to escalating AI-powered scams, ransomware, and impersonation threats fueling demand for Gen Digital’s AI-driven cyber safety solutions, including Genie Scam Protection.
GEN’s Q2 in Details
Gen Digital’s Cyber Safety revenues amounted to $814 million in the fiscal second quarter, up 3% year over year. Revenues of its Trust-Based Solutions segment increased 119% to $406 million. Direct Customer revenues rose 17% year over year to $1.01 billion, and Partner revenues improved 88% to $210 million.
Gen Digital Inc. Price, Consensus and EPS Surprise
Gen Digital Inc. price-consensus-eps-surprise-chart | Gen Digital Inc. Quote
The quarterly bookings advanced 27% year over year to $1.22 billion. Gen Digital’s average direct customer count increased to 77 million, up from 67 million in the year-ago quarter and 76 million in the previous quarter.
The non-GAAP gross profit grew 22% year over year to $1.021 billion in the second quarter. However, the gross margin contracted 240 basis points (bps) to 83.7%.
Non-GAAP operating expenses increased to $398 million, up 46% year over year. As a percentage of revenues, non-GAAP operating expenses were 32.6%, up 5 points year over year.
The non-GAAP operating income in the second quarter of fiscal 2026 totaled $623 million, up 10% year over year. The non-GAAP operating margin was 51.1%, down 710 bps year over year.
Gen Digital’s Balance Sheet & Cash Flow
Gen Digital exited the second quarter with cash and cash equivalents of $701 million, down from $828 million in the previous quarter. The long-term debt was $8.421 billion, down from $8.963 billion in the prior quarter.
In the second quarter of fiscal 2026, the company generated operating cash flow of $116 million and free cash flow of $107 million. Gen Digital paid out $77 million in dividends during the quarter and repaid $169 million of debt, with no share repurchases in the period.
Gen Digital Revises Guidance for 2026
For the third quarter of fiscal 2026, Gen Digital anticipates revenues between $1.22 billion and $1.24 billion. The company projects non-GAAP earnings between 62 cents and 64 cents in the fiscal third quarter.
For fiscal 2026, Gen Digital now projects revenues in the band of $4.92-$4.97 billion, up from the previously guided range of $4.8-$4.9 billion. It now anticipates earnings per share between $2.51 and $2.56 compared with the earlier guidance of $2.49-$2.56.
Zacks Rank & Stocks to Consider
Currently, GEN carries a Zacks Rank #3 (Hold).
Reddit Inc. (RDDT - Free Report) , Credo Technology Group (CRDO - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.
The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.
The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.