Gen Delivers Another Double-Digit Growth Quarter in Q2 FY27 and Raises FY27 Outlook

Paid customers reached 83 million, while quarterly non-GAAP operating margin declined to 50.1% from 51.1%.

Rhea-AI Summary

Gen Digital (GEN) raised its fiscal 2027 outlook after reporting second-quarter revenue of $1.369 billion, up 12% year over year. For the quarter ended October 2, 2026, GAAP operating income rose 16% to $507 million, while diluted earnings per share reached $0.48 versus $0.21. Bookings rose 10% to $1.347 billion, and paid customers increased to 83 million from 77 million a year earlier.

Gen expects full-year non-GAAP revenue of $5.465 billion–$5.515 billion, versus $5.375 billion–$5.475 billion previously, and non-GAAP EPS of $2.93–$2.98, versus $2.87–$2.97. Year-to-date operating cash flow increased 45% to $760 million. Quarterly non-GAAP operating margin fell to 50.1% from 51.1%, despite a higher GAAP margin. A regular $0.125 quarterly dividend is payable December 9, 2026.

22 points · 0 major

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Positive

• Moderate pointQ2 revenue rose 12% year over year to $1.369 billion.
• Moderate pointQ2 GAAP operating income rose 16% to $507 million; margin increased to 37.0% from 35.9%.
• Moderate pointQ2 GAAP net income increased to $287 million from $134 million a year earlier.
• Moderate pointQ2 GAAP diluted EPS reached $0.48, versus $0.21 a year earlier.
• Moderate pointQ2 bookings increased 10% to $1.347 billion.
• Moderate pointQ2 non-GAAP operating income increased 10% to $686 million.
• Moderate pointQ2 non-GAAP diluted EPS increased 19% to $0.74.
• Moderate pointYear-to-date operating cash flow increased 45% to $760 million.
• Moderate pointYear-to-date free cash flow increased 47% to $753 million.
• Moderate pointPaid customers reached 83 million on October 2, 2026, versus 77 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Gen raised FY27 non-GAAP revenue guidance to $5.465 billion–$5.515 billion, from $5.375 billion–$5.475 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Gen expects Q3 non-GAAP revenue of $1.365 billion–$1.390 billion and EPS of $0.73–$0.75.
• Moderate pointCommon-stock repurchases totaled $271 million year to date, versus $134 million a year earlier. 1.9% of market cap

9 minor points

• Minor pointCyber Safety Platform quarterly revenue increased to $858 million from $814 million a year earlier.
• Minor pointTrust-Based Solutions quarterly revenue increased to $511 million from $406 million a year earlier.
• Minor pointQuarterly direct revenue increased to $1.074 billion from $1.010 billion a year earlier.
• Minor pointQuarterly partner revenue increased to $295 million from $210 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Gen raised FY27 non-GAAP EPS guidance to $2.93–$2.98, from $2.87–$2.97.
• Minor pointQ2 interest expense declined to $123 million from $146 million a year earlier.
• Minor pointQ2 restructuring and other costs fell to zero from $4 million a year earlier.
• Minor pointYear-to-date debt repayments totaled $90 million.
• Minor pointCash, cash equivalents and restricted cash rose to $589 million from $411 million at April 3, 2026.

Negative

• Moderate pointQ2 cost of revenues increased to $330 million from $266 million a year earlier.
• Moderate pointCurrent portion of long-term debt rose to $1.080 billion from $181 million at April 3, 2026.
• Minor pointQ2 non-GAAP operating margin declined to 50.1% from 51.1% a year earlier.
• Minor pointQ2 operating expenses increased to $532 million from $516 million a year earlier.
• Minor pointQ2 losses on sales of Instacash Advances increased to $69 million from $55 million a year earlier.

News Explained

Gen’s Q2 results are reported; the release also records cash used for common-stock repurchases, making buybacks a disclosed use of financing cash during the quarter.

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Market move: GEN +5.79% vs previous close. Q2 FY27 earnings report

$23.88 – $26.24 Day Range

$15.42B Mkt Cap at Last Price

On Oct 28, the day this news came out, the latest delayed price for GEN is 5.79% above the previous close. Our momentum scanner has recorded 6 alerts for this stock so far that day. The latest delayed price is $25.76.

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Key Figures

GAAP revenue: $1.369 billion, up 12% GAAP diluted EPS: $0.48, up 122% Bookings: $1.347 billion, up 10% +5 more

GAAP revenue

$1.369 billion, up 12%

Q2 FY27

GAAP diluted EPS

$0.48, up 122%

Q2 FY27

Bookings

$1.347 billion, up 10%

Q2 FY27 non-GAAP results

Non-GAAP diluted EPS

$0.74, up 19%

Q2 FY27

Free cash flow

$753 million, up 47%

Year to date through Q2 FY27

FY27 revenue guidance

$5.465 billion to $5.515 billion (prior: $5.375 billion to $5.475 billion)

Raised non-GAAP FY27 guidance

FY27 EPS guidance

$2.93 to $2.98 (prior: $2.87 to $2.97)

Raised non-GAAP FY27 guidance

Quarterly cash dividend

$0.125 per common share

Approved for payment December 9, 2026

Key Terms

non-GAAP, GAAP, diluted EPS, free cash flow

4 terms

non-GAAP financial

"Q2 Non-GAAP Results"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

GAAP financial

"Q2 GAAP Results"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

diluted EPS financial

"Diluted EPS of $0.48, up 122%"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

free cash flow financial

"Year-to-date free cash flow of $753 million, up 47%"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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TEMPE, Ariz. and PRAGUE, Oct. 28, 2026 /PRNewswire/ -- Gen Digital Inc. (NASDAQ: GEN), a global leader dedicated to powering Digital Freedom, released its results for its second quarter fiscal year 2027, which ended October 2, 2026.

"We delivered our sixth consecutive quarter of double-digit bookings growth," said Vincent Pilette, CEO of Gen. "We reached a record high customer count, alongside strong product engagement and retention. Innovation across our brands and continued investment in our platform are resonating with consumers. We're building on that momentum to expand how we help people protect and manage their digital and financial lives in an increasingly agentic AI world."

Q2 Fiscal Year 2027 Financial Highlights

Q2 GAAP Results

• Revenue of $1.369 billion, up 12%   
• Operating income of $507 million, up 16%
• Diluted EPS of $0.48, up 122%
• Year-to-date operating cash flow of $760 million, up 45%

Q2 Non-GAAP Results

• Bookings of $1.347 billion, up 10%
• Revenue of $1.369 billion, up 12%
• Operating income of $686 million, up 10%
• Diluted EPS of $0.74, up 19%
• Year-to-date free cash flow of $753 million, up 47%

"Our second quarter results reflect the durability of our business model and continued momentum across both segments," said Natalie Derse, CFO of Gen. "Customer demand is strong, and we remain disciplined about investment, efficiency and profitable growth. That balance gives us the confidence to invest in our highest potential opportunities and raise full-year guidance again. We remain focused on consistent execution and lasting value for customers and shareholders."

Non-GAAP Q3 Fiscal Year 2027 Guidance

• Q3 FY27 Revenue expected to be in the range of $1.365 billion to $1.390 billion
• Q3 FY27 EPS expected to be in the range of $0.73 to $0.75

Raises Non-GAAP Fiscal Year 2027 Guidance

• FY27 Revenue expected to be in the range of $5.465 billion to $5.515 billion, compared to prior guidance of $5.375 billion to $5.475 billion
• FY27 EPS expected to be in the range of $2.93 to $2.98, compared to prior guidance of $2.87 to $2.97

Quarterly Cash Dividend
Gen's Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on December 9, 2026, to all shareholders of record as of the close of business on November 16, 2026.

Q2 Fiscal Year 2027 Earnings Call
October 28, 2026
2 p.m. PT / 5 p.m. ET

Webcast & Dial-in instructions at Investor.GenDigital.com. A replay will be posted following the call. For additional details regarding Gen's results and outlook, please see the Financials section of the Investor Relations website at Investor.GenDigital.com.

About Gen 
Gen (NASDAQ: GEN) is a global company dedicated to powering Digital Freedom. Through its trusted brands including Norton, Avast, LifeLock, MoneyLion and Engine, Gen helps people protect and take control of their digital and financial lives. As AI reshapes how people discover, decide and transact, Gen is building the security and trust layer to empower people and their agents to navigate digital life more safely. Gen empowers nearly 500 million users in more than 150 countries through its products and services that span cybersecurity, online privacy, identity protection and financial wellness. Learn more at GenDigital.com.

Forward-Looking Statements
This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, the quotes under "Q2 Fiscal Year 2027 Financial Highlights" including expectations relating to achievement of long-term objectives, and the statements under "Non-GAAP Q3 Fiscal Year 2027 Guidance" and "Non-GAAP Fiscal Year 2027 Guidance" including expectations relating to Q3 Fiscal Year 2027 and Fiscal Year 2027 non-GAAP revenue and non-GAAP EPS, and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated cost savings from any such acquisitions); divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities; the outcome or impact of pending litigation, claims or disputes; difficulties in executing the operating model for the consumer Cyber Safety business; lower than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer and partner relationships; the anticipated growth of certain market segments;  fluctuations and volatility in our stock price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices; and general business and macroeconomic changes in the U.S. and worldwide, including economic recessions, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates, and ongoing and new geopolitical conflicts, and other global macroeconomic factors on our operations and financial performance. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or are not described in our periodic filings, generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments.

Use of Non-GAAP Financial Information
We use non-GAAP measures of operating margin, operating income, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, and constant currency revenues. These non-GAAP financial measures are provided to enhance the user's understanding of our past financial performance and our prospects for the future, and to provide more meaningful comparisons of our current results to our historical performance by adjusting items that affect comparability between periods. Our management team uses these non-GAAP financial measures in assessing Gen's performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release, and which can be found, along with other financial information including the Earnings Presentation, on the investor relations page of our website at Investor.GenDigital.com. No reconciliation of the forecasted range for non-GAAP revenues and EPS guidance is included in this release because most non-GAAP adjustments pertain to events that have not yet occurred. It would be unreasonably burdensome to forecast, therefore we are unable to provide an accurate estimate.

GEN DIGITAL INC.
Condensed Consolidated Balance Sheets
(Unaudited, in millions)
	October 2, 2026		April 3, 2026
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$                 589		$                 411
Accounts receivable, net	398		361
Other current assets	295		295
Assets held for sale	16		14
Total current assets	1,298		1,081
Property and equipment, net	69		71
Intangible assets, net	1,927		2,096
Goodwill	10,930		10,996
Deferred income tax assets	1,143		1,153
Other long-term assets	181		192
Total assets	$            15,548		$            15,589
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$                   82		$                   96
Accrued compensation and benefits	79		115
Current portion of long-term debt	1,080		181
Contract liabilities	1,823		1,904
Other current liabilities	417		414
Total current liabilities	3,481		2,710
Long-term debt	7,036		8,015
Long-term contract liabilities	76		73
Deferred income tax liabilities	178		198
Long-term income taxes payable	1,625		1,588
Other long-term liabilities	411		394
Total liabilities	12,807		12,978
Total stockholders' equity (deficit)	2,741		2,611
Total liabilities and stockholders' equity (deficit)	$            15,548		$            15,589

 

GEN DIGITAL INC.
Condensed Consolidated Statements of Operations
(Unaudited, in millions, except per share amounts)
	Three Months Ended				Six Months Ended
	October 2, 2026		October 3, 2025		October 2, 2026		October 3, 2025
Net revenues	$              1,369		$              1,220		$              2,705		$              2,477
Cost of revenues	330		266		637		533
Gross profit	1,039		954		2,068		1,944
Operating expenses:
Sales and marketing	298		297		598		594
Research and development	112		100		230		209
General and administrative	66		60		146		134
Amortization of intangible assets	56		55		112		109
Restructuring and other costs	—		4		32		14
Total operating expenses	532		516		1,118		1,060
Operating income (loss)	507		438		950		884
Interest expense	(123)		(146)		(247)		(302)
Other income (expense), net	2		(59)		6		(49)
Income (loss) before income taxes	386		233		709		533
Income tax expense (benefit)	99		99		207		264
Net income (loss)	$                 287		$                 134		$                 502		$                 269
Net income (loss) per share - basic	$                0.48		$                0.22		$                0.84		$                0.44
Net income (loss) per share - diluted	$                0.48		$                0.21		$                0.83		$                0.43
Weighted-average shares outstanding:
Basic	596		616		598		617
Diluted	603		624		603		624
GEN DIGITAL INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in millions)
	Three Months Ended				Six Months Ended
	October 2, 2026		October 3, 2025		October 2, 2026		October 3, 2025
OPERATING ACTIVITIES:
Net income (loss)	$                 287		$                 134		$                 502		$                 269
Adjustments:
Amortization and depreciation	122		125		245		248
Stock-based compensation expense	56		56		110		122
Loss on sale of Instacash Advances	69		55		129		91
Deferred income taxes	(16)		(17)		(25)		(6)
Loss on sale of property	—		—		—		1
Non-cash operating lease expense	4		5		8		9
Change in fair value and impairment of non-marketable equity investments	—		69		—		69
Foreign currency remeasurement loss (gain)	(17)		3		(18)		89
Other	14		11		23		21
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	(21)		(13)		(34)		(3)
Accounts payable	(15)		(9)		(14)		(57)
Accrued compensation and benefits	4		12		(35)		(9)
Contract liabilities	(24)		(3)		(80)		(72)
Income taxes payable	(35)		(225)		40		(164)
Instacash Advances held for sale, net	(45)		(44)		(131)		(91)
Other assets	8		7		5		65
Other liabilities	(65)		(50)		35		(57)
Net cash provided by (used in) operating activities	326		116		760		525
INVESTING ACTIVITIES:
Purchases of property and equipment	(3)		(9)		(7)		(13)
Payments for acquisitions, net of cash acquired	—		—		—		(876)
Payments for originations of notes receivable	(88)		—		(173)		—
Proceeds from principal repayments of notes receivable	81		—		158		—
Proceeds from sale of non-marketable equity investments	—		4		—		4
Proceeds from the sale of property	—		—		—		9
Other	—		(2)		(3)		(4)
Net cash provided by (used in) investing activities	(10)		(7)		(25)		(880)
FINANCING ACTIVITIES:
Repayments of debt	(45)		(169)		(90)		(360)
Proceeds from issuance of debt, net of issuance costs (1)	—		—		—		741
Net proceeds from sales of common stock under employee stock incentive plans	7		7		7		7
Tax payments related to vesting of stock units	(3)		(3)		(44)		(47)
Dividends and dividend equivalents paid	(76)		(77)		(157)		(159)
Repurchases of common stock	(171)		—		(271)		(134)
Other	(1)		—		(1)		—
Net cash provided by (used in) financing activities	(289)		(242)		(556)		48
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(2)		6		(1)		2
Change in cash, cash equivalents and restricted cash	25		(127)		178		(305)
Beginning cash, cash equivalents and restricted cash	564		828		411		1,006
Ending cash, cash equivalents and restricted cash	$                 589		$                 701		$                 589		$                 701

_____________________
(1)	Issuance costs paid for issuance of debt for the six months ended October 3, 2025 were $9 million.

 

GEN DIGITAL INC.
Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (2)
(Unaudited, in millions, except per share amounts)
	Three Months Ended
	October 2, 2026		October 3, 2025
Operating income (loss)	$                     507		$                     438
Stock-based compensation	56		55
Amortization of intangible assets	118		121
Restructuring and other costs	—		4
Acquisition and integration costs	3		2
Litigation costs	2		2
Other	—		1
Operating income (loss) (Non-GAAP)	$                     686		$                     623
Operating margin	37.0 %		35.9 %
Operating margin (Non-GAAP)	50.1 %		51.1 %
Net income (loss)	$                     287		$                     134
Adjustments to net income (loss):
Stock-based compensation	56		55
Amortization of intangible assets	118		121
Restructuring and other costs	—		4
Acquisition and integration costs	3		2
Litigation costs	2		2
Other	—		3
Non-cash interest expense	5		7
Change in fair value and impairment of non-marketable equity investments	—		69
Total adjustments to GAAP income (loss) before income taxes	184		263
Adjustment to GAAP provision for income taxes	(27)		(10)
Total adjustment to income (loss), net of taxes	157		253
Net income (loss) (Non-GAAP)	$                     444		$                     387
Diluted net income (loss) per share	$                    0.48		$                    0.21
Adjustments to diluted net income (loss) per share:
Stock-based compensation	0.09		0.09
Amortization of intangible assets	0.20		0.19
Restructuring and other costs	—		0.01
Acquisition and integration costs	0.00		0.00
Litigation costs	0.00		0.00
Other	—		0.00
Non-cash interest expense	0.01		0.01
Change in fair value and impairment of non-marketable equity investments	—		0.11
Total adjustments to GAAP income (loss) before income taxes	0.31		0.42
Adjustment to GAAP provision for income taxes	(0.04)		(0.02)
Total adjustment to income (loss), net of taxes	0.26		0.41
Diluted net income (loss) per share (Non-GAAP)	$                    0.74		$                    0.62
Diluted weighted-average shares outstanding	603		624
Diluted weighted-average shares outstanding (Non-GAAP)	603		624
	Six Months Ended
	October 2, 2026		October 3, 2025
Net cash provided by (used in) operating activities	$                     760		$                     525
Adjustments to net cash provided by (used in) operating activities:
Purchases of property and equipment	(7)		(13)
Free cash flow (Non-GAAP)	$                     753		$                     512

__________________________
(1)	This presentation includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A.
(2)	Amounts may not add due to rounding.

 

GEN DIGITAL INC.
Performance Metrics
(Unaudited, in millions)
Performance Metrics
	Three Months Ended
	October 2, 2026		October 3, 2025
Cyber Safety Platform	$                 858		$                814
Trust-Based Solutions	511		406
Total net revenues	$              1,369		$             1,220
Direct revenues	$              1,074		$             1,010
Partner revenues	295		210
Total net revenues	$              1,369		$             1,220
Total bookings	$              1,347		$             1,222
	As of
	October 2, 2026		October 3, 2025
Total paid customers	83		77

GEN DIGITAL INC.
Appendix A
Explanation of Non-GAAP Measures and Other Items

Objective of non-GAAP measures: We believe our presentation of non-GAAP financial measures, when taken together with corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance for the reasons discussed below. Our management team uses these non-GAAP financial measures in assessing our performance, as well as in planning and forecasting future periods. Due to the importance of these measures in managing the business, we use non-GAAP measures in the evaluation of management's compensation. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. 

Stock-based compensation: This consists of expenses for employee restricted stock units, performance-based awards, stock options and our employee stock purchase plan, determined in accordance with GAAP. We evaluate our performance both with and without these measures because stock-based compensation is a non-cash expense and can vary significantly over time based on the timing, size, nature and design of the awards granted, and is influenced in part by certain factors that are generally beyond our control, such as the volatility of the market value of our common stock. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation to facilitate the comparison of our results to those of other companies in our industry. 

Amortization of intangible assets: Amortization of intangible assets consists of amortization of acquisition-related intangible assets such as developed technology, customer relationships and trade names acquired in connection with business combinations. We record charges relating to the amortization of these intangibles within both cost of revenues and operating expenses in our GAAP financial statements. Under purchase accounting, we are required to allocate a portion of the purchase price to intangible assets acquired and amortize this amount over the estimated useful lives of the acquired intangible assets. However, the purchase price allocated to these assets is not necessarily reflective of the cost we would incur to internally develop the intangible asset. Further, amortization charges for our acquired intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We eliminate these charges from our non-GAAP operating results to facilitate an evaluation of our current operating performance and provide better comparability to our past operating performance.

Restructuring and other costs: Restructuring charges are costs associated with a formal restructuring plan and are primarily related to employee severance and benefit arrangements, contract termination costs, and assets write-offs, as well as other exit and disposal costs. Included in other exit and disposal costs are costs to exit and consolidate facilities in connection with restructuring events. We exclude restructuring and other costs from our non-GAAP results as we believe that these costs are incremental to core activities that arise in the ordinary course of our business and do not reflect our current operating performance, and that excluding these charges facilitates a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.

Acquisition-related and integration costs: These represent the transaction and business integration costs related to significant acquisitions that are charged to operating expense in our GAAP financial statements. These costs include incremental expenses incurred to affect these business combinations such as advisory, legal, accounting, valuation, and other professional or consulting fees. We exclude these costs from our non-GAAP results as they have no direct correlation to the operation of our business, and because we believe that the non-GAAP financial measures excluding these costs provide meaningful supplemental information regarding the spending trends of our business. In addition, these costs vary, depending on the size and complexity of the acquisitions, and are not indicative of costs of future acquisitions.

Litigation costs: We may periodically incur charges or benefits related to litigation settlements, legal contingency accruals and third-party legal costs related to certain legal matters. We exclude these charges and benefits when associated with a significant matter because we do not believe they are reflective of ongoing business and operating results. 

Non-cash interest expense and amortization of debt issuance costs: In accordance with GAAP, we separately account for the value of the conversion feature on our convertible notes as a debt discount that reflects our assumed non-convertible debt borrowing rates. We amortize the discount and debt issuance costs over the term of the related debt. We exclude the difference between the imputed interest expense, which includes the amortization of the conversion feature and of the issuance costs, and the coupon interest payments. We extinguished our remaining convertible debt on August 15, 2022. During fiscal 2023, we also started amortizing the debt issuance costs associated with our senior credit facilities, which were secured upon close of the acquisition of Avast. We believe that excluding these costs provides meaningful supplemental information regarding the cash cost of our debt instruments and enhances investors' ability to view the Company's results from management's perspective.

Gain (loss) on extinguishment of debt: We record gains or losses on extinguishment of debt. Gains or losses represent the difference between the fair value of the exchange consideration and the carrying value of the liability component of the debt at the date of extinguishment. We exclude the gain or loss on debt extinguishment in our non-GAAP results because they are not reflective of our ongoing business.

Change in fair value and impairment of non-marketable equity investments: We record gains or losses, unrealized and realized, on equity investments in privately-held companies. We exclude the net gains or losses because we do not believe they are reflective of our ongoing business.

Gain (loss) on sale of properties and nonfinancial assets: We periodically recognize gains or losses from the disposition of land, buildings and nonfinancial assets. We exclude such gains or losses because they are not reflective of our ongoing business and operating results.

Income tax effects and adjustments: We use a non-GAAP tax rate that excludes (1) the discrete impacts of changes in tax legislation, (2) most other significant discrete items, (3) unrealized gains or losses from remeasurement of foreign currency denominated deferred tax items and uncertain tax benefits, and (4) the income tax effects of the non-GAAP adjustment to our operating results described above. We believe making these adjustments facilitates a better evaluation of our current operating performance and comparisons to past operating results. Our tax rate is subject to change for a variety of reasons, such as significant changes in the geographic earnings mix due to acquisition and divestiture activities or fundamental tax law changes in major jurisdictions where we operate.

Diluted GAAP and non-GAAP weighted-average shares outstanding: Diluted GAAP and non-GAAP weighted-average shares outstanding are generally the same, except in periods when there is a GAAP loss from continuing operations. In accordance with GAAP, we do not present dilution for GAAP in periods in which there is a loss from continuing operations. However, if there is non-GAAP net income, we present dilution for non-GAAP weighted-average shares outstanding in an amount equal to the dilution that would have been presented had there been GAAP income from continuing operations for the period.

Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers' demand for our products and services and to assist readers in analyzing our performance in future periods.

Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.

(Unlevered) Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Unlevered free cash flow excludes cash interest expense payments, net of payments received through interest rate swap hedges. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.

Cyber Safety Platform: Includes our security and privacy products, as well as our cyber safety comprehensive suites which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and confidently.

Trust-Based Solutions: Trust-Based Solutions includes our identity, reputation, and financial wellness products, which provide innovative solutions and insights that empower consumers to grow and manage their identity, reputation and finances confidently.

Direct revenue: Direct revenue reflects subscriptions sold directly through e-commerce or mobile channels, and revenue generated from financial transactions directly made through Gen properties or marketplaces.

Partner revenue: Partner revenue reflects partner-sourced and channel revenue via retailers, employee benefits, telcos, publishers, and strategic partnerships, including revenue generated from product usage or products sold through our financial marketplace.

Paid customers: We define paid customers as active users of our products and solutions, including subscribers with an active paid subscription to our products at the end of the reported period. Paid customers also includes product users with a unique account and at least one revenue-generating transaction in the relevant active period of each respective product category, whether through our first-party personal finance products, transacting through our financial marketplaces, or generating revenue through product usage. We exclude users on free trials and those who have not actively transacted in the relevant period of each respective product category. In order to properly reflect Gen's customer cohorts that contribute to revenue given the dynamic nature of consumers and our product portfolio, our methodology is subject to change from time to time. The methodologies used to measure these metrics require judgment and we regularly review our metrics to improve their accuracy. However, our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. We generally do not intend to update previously disclosed metrics for any such inaccuracies or adjustments that are deemed not material.

CONTACTS
Investor Contact Ben Lu		Media Contact Audra Proctor
Gen		Gen
IR@GenDigital.com		Press@GenDigital.com

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SOURCE Gen Digital Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Gen Digital's raised fiscal 2027 outlook?

Gen expects fiscal 2027 non-GAAP revenue of $5.465 billion to $5.515 billion and non-GAAP EPS of $2.93 to $2.98. Previous guidance was $5.375 billion to $5.475 billion in revenue and $2.87 to $2.97 in EPS.

What were Gen Digital's Q2 fiscal 2027 earnings?

Gen reported Q2 GAAP diluted EPS of $0.48, compared with $0.21 a year earlier, on revenue of $1.369 billion. Non-GAAP diluted EPS was $0.74, up 19%. The quarter ended October 2, 2026.

When will Gen Digital pay its quarterly dividend?

Gen will pay its regular quarterly cash dividend of $0.125 per common share on December 9, 2026. Shareholders must be holders of record as of the close of business on November 16, 2026.