GEN US S&P 500Russell 1000 Earnings call
Gen Digital (GEN) · Q2 2026 results and valuation
Share price: $30.64 · 2026-11-11
Gen Digital provides cyber security, online privacy, identity protection, and financial wellness solutions. The company serves individuals, families, and small businesses through direct, partner, and freemium channels in over 150 countries. Source: 10-K annual report (2026-05-21)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 6 Aug 2026 and 7 May 2026
Net income down 58.0% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
1 · Numbers
−58.0%
Net income vs Q1 2026
Outlook given
Net income 215.0M vs 512.0M
Revenue +4.1%
Against the same quarter last year (Q2 2025) it is +59.3%, so the move on last quarter looks seasonal or timing-related rather than a trend.
Why Against the same quarter last year (+59.3%), net income rose because both Cyber Safety and Trust-Based Solutions grew revenue with a growth plus margin profile above 50%, supported by disciplined execution and a lower OpEx burden in high-growth marketplace categories.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
Gen Digital raised its fiscal 2027 revenue guidance to $5.375 billion-$5.475 billion, reflecting growth of 9%-11% compared to the prior guidance of 8%-10%.
Valuation
Is Gen Digital undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-04-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.7% growth a year (3-year revenue growth), the model's fair value is $72.90 a share — the stock trades 58% below it. Today's price assumes 5.3% growth a year.
Current price
$30.64
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+5.3% for 10 yrs
Fair value / share
$72.90
Buy below
$54.67
Price vs fair value
Undervalued 58%
Price vs buy-below price
Undervalued 44%
Management expects
Revenue +10% · from the Q2 2026 report: “The company raised its fiscal 2027 revenue guidance to $5.375 billion-$5.475 billion, reflecting growth of 9%-11% compared to the prior guidance of 8%-10%.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The company raised its fiscal 2027 revenue guidance to $5.375 billion-$5.475 billion, reflecting growth of 9%-11% compared to the prior guidance of 8%-10%.
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Guidance
Bookings and revenue grew 11% and non-GAAP EPS grew 19%, both of which exceeded guidance.
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Guidance
The company raised fiscal 2027 guidance to 9%-11% revenue growth and 14%-18% non-GAAP EPS growth due to Q1 outperformance and continued momentum.
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Guidance
Cyber Safety margins remained stable at 61% to support the company's goal of delivering mid-single-digit top-line growth while maintaining profitability.
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Figure
Cyber Safety and Trust-Based Solutions are growing revenue with a growth plus margin profile above 50% due to a shared platform of proprietary data, modular technology, and AI-driven personalization.
Source quote
“Cyber Safety and Trust-Based Solutions are both growing revenue with growth plus margin profile above 50%, and are powered by a single platform of shared proprietary data and models, modular technology, and AI-driven personalization that scale across our brands.”
4 more
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Figure
Revenue grew 11% year-over-year to $1.34 billion, marking the company's fastest growth rate since its creation and the fifth consecutive quarter of double-digit bookings growth.
Source quote
“Q1 is our fifth consecutive quarter of double-digit bookings growth, up 11% year-over-year to $1.28 billion, while our revenues also increased 11% year-over-year to $1.34 billion, our fastest growth rate since Gen was created, with broad-based growth across our two segments.”
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Guidance
GEN paid down debt by $45 million to reach an ending net leverage of 2.95x, moving the company closer to its 3x net leverage target.
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Guidance
GEN raised top line guidance to a double-digit growth rate of 10% adjusted and by $50 million.
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Figure
Norton 360's higher tier memberships, combining scam detection, identity restoration, financial protection, and insurance, have scaled to nearly half a billion dollars in annualized bookings.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“For more information, please refer to the cautionary statement in our press release and the risk factors in our filings with the SEC, and in particular, our most recent reports...”
“Keep in mind that some of our fastest-growing marketplace categories have a unique business model where it has slightly lower gross margin due to revenue share but also carries a...”
“Our job is to be the trusted partner who reduces their risks and keep them safe, confident, and empowered online and in an AI world.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-03)
| Metric | Q2 2026period end 2026-07-03 | Q1 2026period end 2026-04-03 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.34B | 1.28B | +4.1% | 1.26B | +6.3% |
| Gross profit | 1.03B | 1.01B | +2.2% | 990.0M | +3.9% |
| Operating income | 443.0M | 803.0M | −44.8% | 446.0M | −0.7% |
| Net income | 215.0M | 512.0M | −58.0% | 135.0M | +59.3% |
| EPS | 0.36 | 0.83 | −56.6% | 0.22 | +63.6% |
| P/E today 15.1 | 15.6 | 12.0 | +3.6 | 31.8 | −16.2 |
Topics
Most discussed now
- New Gen Digital builds that vertical based on the capability it had acquired from Trellis, quickly integrated, then the team did a...
- Gen Digital rebuilts the experience for a mobile-first, scam-aware consumer, and the simpler tiered experience is moving customers to…
- Gen is a $5.4 billion revenue platform spanning security, privacy, identity, and financial wellness, growing revenue and EPS double...
- Retention also remains healthy at nearly 90%, particularly among more mature cohorts that have experienced the full breadth of the...
- Identity continues to demonstrate strong momentum, and the early indicators of the impact of Gen Digital's reimagined LifeLock product are…
Faded since Q1 2026
- Fading This leaner operating model lets it develop and test quickly, enter new categories faster and compound returns over time.
- Fading Gen Digital exited at 3x net leverage, a year ahead of plan.
- Fading With this momentum growing, Gen Digital sees over $100 million in incremental annual revenue from embedded financial wellness partner…
- Fading From a guidance perspective, whether you look at Q1 or you look at the full year, building on the momentum...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
The company appointed Talbott Roche as an independent director on October 6, 2026, following her previous roles as CEO of Blackhawk Network and director of Electronic Arts.
- Regulation FD disclosure · SEC 8-K
CEO Vincent Pilette posted on LinkedIn regarding the company's acquisition strategy, financial outlook, and fiscal 2027 revenue and EPS growth guidance.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Gen Digital reported Q1 FY27 revenue of $1.336 billion, up 6% year over year, and non-GAAP revenue of $1.336 billion, up 11% year over year.
- Results of operations; Other events · SEC 8-K
Gen Digital Inc. reported fiscal year 2026 revenue of $5,000 million, up 27% year over year, and approved a restructuring program with expected charges of approximately $50 million.
- Material agreement · SEC 8-K
Gen Digital entered into a Third Amendment to its Credit Agreement on March 27, 2026, extending the maturity date of its $1,500 million Revolving Credit Facility to March 27, 2031.
- Results of operations · SEC 8-K
Gen Digital reported Q3 revenue of $1,240 million, up 26% year over year, and a diluted GAAP EPS of $0.31, up 22% compared to the previous year.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-13.
Cash & runway
Cash & equivalents
$411.0M
2026-04-03
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -2.9% YoY.
| Quarter | Shares |
|---|---|
| Q3 2024 | 616.0M |
| Q4 2024 | 616.0M |
| Q3 2025 | 617.0M |
| Q4 2025 | 616.0M |
| Q1 2026 | 611.0M |
| Q3 2026 | 599.0M |
Shares outstanding: 598.6M (2026-08-04)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. 34 filings parsed.
Sold by insiders
773.0K shares
$21.9M · 10 transactions
Bought by insiders
8.0K shares
$216.9K · 2 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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by the end of fiscal 2027
Engine-enabled cross-sell into our install base
Source quote
“We are already seeing it with Engine-enabled cross-sell into our install base, on track to double by the end of fiscal 2027, giving us the confidence that the model is working and including it in our guidance race.”
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fiscal year 2027
Agentic revenue
Source quote
“Agentic revenue will be modest in fiscal year 2027, but Gen holds what is hard to replicate.”
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fiscal 2027
revenue growth to 9%-11% and non-GAAP EPS growth to 14%-18%
Source quote
“Q1 outperformance and continued momentum gives us the confidence to raise fiscal 2027 guidance to 9%-11% revenue growth and 14%-18% non-GAAP EPS growth.”
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full year fiscal 2027
raised outlook
Source quote
“I will walk through our Q1 fiscal 2027 results and our raised outlook for full year fiscal 2027.”
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September 9th, 2026
payment of a regular quarterly cash dividend of $0.125 per common share
Source quote
“ectors approved a regular quarterly cash dividend of $0.125 per common share to be paid on September 9th, 2026, for all shareholders of record as of the close of business on August 17th, 2026.”