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Gen Digital to Report Q2 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • GEN expects fiscal second-quarter 2027 revenues of $1.325-$1.350 billion and EPS of 71-73 cents.
  • GEN blocked over 500 million scam attacks in Q1 as AI-enabled threats drive demand for protection.
  • GEN's Engine Marketplace reached a $500 million revenue run rate and added over 30 partners in Q1.

Gen Digital (GEN - Free Report) is scheduled to report second-quarter fiscal 2027 results on Oct. 28, after market close.

GEN expects non-GAAP revenues in the band of $1.325-$1.350 billion for the quarter. The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating 9.4% year-over-year growth.

For the fiscal second quarter, Gen Digital expects non-GAAP earnings in the range of 71-73 cents per share. The consensus mark for the same is pegged at 72 cents per share, suggesting a year-over-year rise of 16.1%. The estimate has remained unchanged over the past 30 days.

GEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.3%.

Gen Digital Inc. Price and EPS Surprise

Gen Digital Inc. Price and EPS Surprise

Gen Digital Inc. price-eps-surprise | Gen Digital Inc. Quote

Factors to Note for GEN's Q2 Earnings

Gen Digital is expected to have gained from sustained demand for cybersecurity, identity protection and financial safety solutions due to the rapid rise in cyber threats, particularly AI-enabled scams. The emergence of cyber safety and financial wellness is likely to have been a tailwind for Gen Digital in the to-be-reported quarter.

In the Cyber Safety segment, rising concerns about AI-enabled scams are expected to have supported demand for Gen Digital's security and privacy solutions. The company's scam protection engine blocked more than 500 million scam attacks in the first quarter, while consumer research showed that more than 60% of respondents were more likely to pay for protection against AI-driven scams. Continued demand for higher-tier Norton 360 subscriptions, along with stronger cross-selling and upselling across Norton, Avast and Avira, is likely to have supported growth in the fiscal second quarter.

Engine Marketplace is expected to have supported revenue growth in the fiscal second quarter through the addition of partners, new product categories and broader distribution. The business reached an annual revenue run rate of approximately $500 million in the first quarter, added more than 30 partners and expanded into insurance. Further integration of Trellis insurance capabilities and partnerships with platforms such as Equifax could have helped connect GEN with more customers seeking financial products, which might have contributed significantly to the company's growth in the fiscal second quarter.

Momentum in the quarter is likely to have been supported by Gen Digital's expanding AI-driven product portfolio. Norton Neo, its AI-native browser, doubled its daily active users in the first quarter, while its Sage agent security engine was made available to 25 million customers through Norton 360 and Avast One. The launch of MoneyLion One, which combines financial wellness with identity and scam protection, is likely to have supported cross-selling opportunities in the fiscal second quarter.

What Our Model Says About GEN

Our proven model does not conclusively predict an earnings beat for GEN this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

GEN has an Earnings ESP of 0.00% and carries a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Seagate Technology (STX - Free Report) has an Earnings ESP of +2.07% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagate Technology is set to report first-quarter fiscal 2027 results on Oct. 27. The Zacks Consensus Estimate for Seagate Technology’s first-quarter fiscal 2027 earnings is pegged at $7.44 per share, up by 10 cents over the past seven days, indicating a rise of 185.1% from the year-ago quarter’s reported figure.

Amphenol (APH - Free Report) has an Earnings ESP of +1.72% and carries a Zacks Rank #2 at present.

Amphenol is set to report third-quarter 2026 results on Oct. 28. The Zacks Consensus Estimate for Amphenol’s third-quarter 2026 earnings is pegged at 73 cents per share, up by a penny over the past seven days, indicating a rise of 55.3% from the year-ago quarter’s reported figure.

Corning (GLW - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2 at present.

Corning is slated to report third-quarter 2026 results on Oct. 27. The Zacks Consensus Estimate for Corning’s third-quarter 2026 earnings is pegged at 89 cents per share, up by a penny over the past seven days, indicating a rise of 32.8% from the year-ago quarter’s reported figure.

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