Gen Reports Strong Q3 FY26 Results and Raises FY26 Guidance

Rhea-AI Summary

Gen (NASDAQ: GEN) reported strong Q3 FY26 results for the quarter ended Jan 2, 2026, with Q3 revenue $1,240M (+26% YoY), GAAP operating income $433M (+16%), and diluted GAAP EPS $0.31 (+22%).

The company reported non-GAAP bookings of $1,319M (+27%) and raised FY26 non-GAAP revenue guidance to $4.955B–$4.975B and EPS to $2.54–$2.56. Board approved quarterly dividend $0.125/share payable Mar 11, 2026.

Positive

• Q3 revenue of $1,240M, up 26% YoY
• Bookings of $1,319M, up 27% YoY
• Year-to-date free cash flow of $1,047M, up 42%
• Raised FY26 non-GAAP revenue guidance to $4.955B–$4.975B

Negative

• Non-GAAP operating income grew 9% in Q3, behind GAAP operating income growth of 16%
• Company deployed nearly $700M of capital to shareholders in the quarter, reducing near-term liquidity

Key Figures

Q3 GAAP Revenue: $1,240 million Q3 GAAP Diluted EPS: $0.31 Q3 Non-GAAP Bookings: $1,319 million +5 more

8 metrics

Q3 GAAP Revenue $1,240 million Q3 FY26, up 26% year-over-year

Q3 GAAP Diluted EPS $0.31 Q3 FY26, up 22% year-over-year

Q3 Non-GAAP Bookings $1,319 million Q3 FY26, up 27% year-over-year

Q3 Non-GAAP Operating Income $629 million Q3 FY26, up 9% year-over-year

Q3 Non-GAAP Diluted EPS $0.64 Q3 FY26, up 14% year-over-year

YTD Free Cash Flow $1,047 million FY26 year-to-date, up 42%

FY26 Revenue Guidance $4.955–$4.975 billion Raised from prior $4.920–$4.970 billion

FY26 EPS Guidance $2.54–$2.56 Raised from prior $2.51–$2.56

Market Reality Check

Price: $22.43 Vol: Volume 10,227,280 is 1.83...

high vol

$22.43 Last Close

Volume Volume 10,227,280 is 1.83x the 20-day average of 5,599,435, indicating elevated interest ahead of earnings. high

Technical Trading below the 200-day MA at 27.96, despite a recent lift to 22.93.

Peers on Argus

GEN was up 2.14% pre-release with elevated volume, while key peers like CHKP (+2...

GEN was up 2.14% pre-release with elevated volume, while key peers like CHKP (+2.83%), GDDY (+2.39%) and OKTA (+2.36%) also traded higher, but no sector-wide momentum was flagged by the scanner.

Common Catalyst Select peers had company-specific news (e.g., OKTA identity deal, KSPI earnings date) rather than a unified sector catalyst.

Historical Context

5 past events · Latest: Feb 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 04	Strategic partnership	Positive	+2.1%	Expanded Equifax partnership integrating data with Gen’s AI-powered products.
Feb 04	Product launch	Positive	+2.1%	Launch of Gen Agent Trust Hub to secure autonomous AI agent adoption.
Feb 03	Product expansion	Positive	-5.6%	Global rollout of Avast Scam Guardian and new Deepfake Guard tool.
Feb 02	AI fraud report	Positive	-0.8%	LifeLock report on tax-season fraud trends and AI usage in filing.
Jan 27	Consumer insights	Positive	-1.6%	Norton study on AI relationships and rising dating scams with product tie-ins.

Pattern Detected

Recent news flow has been consistently positive, but price reactions were mixed, with several AI/consumer product updates followed by short-term pullbacks and the latest partnership-related headlines aligning with a modest rebound.

Recent Company History

Over the past weeks, GEN released multiple AI and security-focused updates and partnerships. On Feb 4, 2026, the company expanded its Equifax partnership and launched the Gen Agent Trust Hub, both coinciding with a +2.14% move. Earlier, Avast’s Scam Guardian expansion on Feb 3, 2026 and AI-driven consumer insights from LifeLock and Norton in late January drew attention but saw modest to negative price reactions, showing that strong product news has not always driven sustained gains.

Market Pulse Summary

This announcement highlighted a solid Q3 FY26, with revenue up 26%, non-GAAP bookings up 27%, and no...

Analysis

This announcement highlighted a solid Q3 FY26, with revenue up 26%, non-GAAP bookings up 27%, and non-GAAP EPS at $0.64. Management raised FY26 revenue guidance to $4.955–$4.975 billion and EPS to $2.54–$2.56, while maintaining a $0.125 quarterly dividend. Recent history shows that even positive AI and product news has produced mixed stock reactions, so follow-up metrics like sustained cash generation and capital deployment will be important to watch.

Key Terms

gaap, non-gaap, diluted eps, free cash flow, +3 more

7 terms

gaap financial

"Q3 GAAP ResultsRevenue of $1,240 million, up 26% Operating income..."

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.

non-gaap financial

"Q3 Non-GAAP ResultsBookings of $1,319 million, up 27%Revenue..."

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.

diluted eps financial

"Diluted EPS of $0.31, up 22%Year-to-date operating cash flow..."

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 $1,047 million, up 42%"We delivered..."

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.

bookings financial

"Q3 Non-GAAP ResultsBookings of $1,319 million, up 27%Revenue..."

"Bookings" refer to the total value of new sales or agreements a company secures during a specific period. It shows how much business the company has signed up for, even if the products or services haven't been delivered yet. This figure helps investors understand the company's future growth potential.

guidance financial

"Raising Non-GAAP Fiscal Year 2026 GuidanceFY26 Revenue expected..."

Guidance is the information that a company provides about its expected future performance or plans. It helps investors understand what the company aims to achieve and whether it anticipates growth or challenges ahead, much like a weather forecast helps people prepare for upcoming conditions. This information influences investment decisions by giving a clearer picture of the company's outlook.

quarterly cash dividend financial

"Quarterly Cash DividendGen's Board of Directors has approved a regular quarterly cash dividend..."

A quarterly cash dividend is a payment made by a company to its shareholders four times a year, usually based on its profits. It is like a regular bonus or reward for owning the company's stock, providing shareholders with income. Many investors see these payments as a sign of the company's stability and its ability to generate consistent profits.

AI-generated analysis. Not financial advice.

TEMPE, Ariz. and PRAGUE, Feb. 5, 2026 /PRNewswire/ -- Gen Digital Inc. (NASDAQ: GEN), a global leader dedicated to powering Digital Freedom, released its results for its third quarter fiscal year 2026, which ended January 2, 2026.

"As AI transforms digital life and the threat landscape, consumers need protection and guidance they can trust," said Vincent Pilette, CEO of Gen. "Our Q3 results confirm that Gen's platform strategy is resonating. By uniting advanced intelligence and signals across security, identity and financial wellness at unmatched scale, we're delivering personalized protection and contextual recommendations for our customers at the moments that matter the most."

Q3 Fiscal Year 2026 Financial Highlights

Q3 GAAP Results

• Revenue of $1,240 million, up 26%  
• Operating income of $433 million, up 16%
• Diluted EPS of $0.31, up 22%
• Year-to-date operating cash flow of $1,066 million, up 43%

Q3 Non-GAAP Results

• Bookings of $1,319 million, up 27%
• Revenue of $1,240 million, up 26%
• Operating income of $629 million, up 9%
• Diluted EPS of $0.64, up 14%
• Year-to-date free cash flow of $1,047 million, up 42%

"We delivered a strong Q3 with continued growth momentum. The strength of our financial model continues to generate substantial free cash flow enabling us to invest in growth and innovation while deploying nearly $700 million of capital to shareholders during the quarter," said Natalie Derse, CFO of Gen. "As we scale our trusted AI-powered platform and expand our leadership in secure financial wellness, we remain sharply focused on driving growth, operating discipline, and long-term shareholder value."

Non-GAAP Q4 Fiscal Year 2026 Guidance

• Q4 FY26 Revenue expected to be in the range of $1.24 billion to $1.26 billion
• Q4 FY26 EPS expected to be in the range of $0.64 to $0.66

Raising Non-GAAP Fiscal Year 2026 Guidance

• FY26 Revenue expected to be in the range of $4.955 billion to $4.975 billion, compared to prior guidance of $4.920 billion to $4.970 billion
• FY26 EPS expected to be in the range of $2.54 to $2.56, compared to prior guidance of $2.51 to $2.56

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 March 11, 2026, to all shareholders of record as of the close of business on February 16, 2026.

Q3 Fiscal Year 2026 Earnings Call
February 5, 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 consumer brands including Norton, Avast, LifeLock, MoneyLion and more. The Gen family of consumer brands is rooted in providing financial empowerment and cyber safety for the first digital generations. Today, Gen empowers people to live their digital lives safely, privately and confidently for generations to come. Gen brings award-winning products and services in cybersecurity, online privacy, identity protection and financial wellness to nearly 500 million users in more than 150 countries. 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 "Q3 Fiscal Year 2026 Financial Highlights" including expectations relating to achievement of long-term objectives, and the statements under "Non-GAAP Q4 Fiscal Year 2026 Guidance" and "Non-GAAP Fiscal Year 2026 Guidance" including expectations relating to Q4 Fiscal Year 2026 and Fiscal Year 2026 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. 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)
	January 2, 2026		March 28, 2025
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$                   619		$                1,006
Accounts receivable, net	361		171
Other current assets	257		245
Assets held for sale	16		22
Total current assets	1,253		1,444
Property and equipment, net	69		60
Intangible assets, net	2,212		2,267
Goodwill	10,847		10,237
Deferred income tax assets	1,258		1,218
Other long-term assets	192		269
Total assets	$              15,831		$              15,495
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$                     83		$                     94
Accrued compensation and benefits	116		105
Current portion of long-term debt	240		291
Contract liabilities	1,822		1,846
Other current liabilities	427		515
Total current liabilities	2,688		2,851
Long-term debt	8,167		7,968
Long-term contract liabilities	84		77
Deferred income tax liabilities	220		222
Long-term income taxes payable	1,583		1,420
Other long-term liabilities	757		688
Total liabilities	13,499		13,226
Total stockholders' equity (deficit)	2,332		2,269
Total liabilities and stockholders' equity (deficit)	$              15,831		$              15,495

 

GEN DIGITAL INC. Condensed Consolidated Statements of Operations (Unaudited, in millions, except per share amounts)
	Three Months Ended				Nine Months Ended
	January 2, 2026		December 27, 2024		January 2, 2026		December 27, 2024
Net revenues	$                1,240		$                   986		$                3,717		$                2,925
Cost of revenues	268		193		801		577
Gross profit	972		793		2,916		2,348
Operating expenses:
Sales and marketing	307		182		901		549
Research and development	96		84		305		248
General and administrative	70		108		204		224
Amortization of intangible assets	55		43		164		130
Restructuring and other costs	11		2		25		4
Total operating expenses	539		419		1,599		1,155
Operating income (loss)	433		374		1,317		1,193
Interest expense	(137)		(141)		(439)		(443)
Other income (expense), net	13		(25)		(36)		(8)
Income (loss) before income taxes	309		208		842		742
Income tax expense (benefit)	117		49		381		241
Net income (loss)	$                   192		$                   159		$                   461		$                   501
Net income (loss) per share - basic	$                  0.31		$                  0.26		$                  0.75		$                  0.81
Net income (loss) per share - diluted	$                  0.31		$                  0.26		$                  0.74		$                  0.80
Weighted-average shares outstanding:
Basic	611		616		615		618
Diluted	618		623		622		624

 

GEN DIGITAL INC. Condensed Consolidated Statements of Cash Flows (Unaudited, in millions)
	Three Months Ended				Nine Months Ended
	January 2, 2026		December 27, 2024		January 2, 2026		December 27, 2024
OPERATING ACTIVITIES:
Net income (loss)	$                   192		$                   159		$                   461		$                   501
Adjustments:
Amortization and depreciation	126		104		374		315
Impairments and write-offs of current and long-lived assets	—		(1)		—		2
Stock-based compensation expense	53		33		175		97
Loss on sale of Instacash Advances	55		—		146		—
Deferred income taxes	6		(13)		—		(50)
Gain on sale of nonfinancial assets	(15)		—		(15)		—
Loss on sale of property	(1)		—		—		—
Non-cash operating lease expense	4		4		13		11
Change in fair value and impairment of non-marketable equity investments	10		30		79		30
Legal contract dispute cost	—		42		—		42
Foreign currency remeasurement loss (gain)	(3)		(28)		86		(14)
Other	14		16		35		10
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	(63)		(36)		(66)		(34)
Accounts payable	5		6		(52)		35
Accrued compensation and benefits	20		21		11		16
Contract liabilities	71		44		(1)		(27)
Income taxes payable	51		33		(113)		(136)
Instacash Advances held for sale, net	(57)		—		(148)		—
Other assets	7		11		72		75
Other liabilities	66		(99)		9		(125)
Net cash provided by (used in) operating activities	541		326		1,066		748
INVESTING ACTIVITIES:
Purchases of property and equipment	(6)		(8)		(19)		(12)
Purchase of non-marketable equity investments	—		—		—		(4)
Payments for acquisitions, net of cash acquired	—		—		(876)		—
Proceeds from sale of non-marketable equity investments	9		—		13		—
Proceeds from the sale of property	12		—		21		—
Proceeds from sale of nonfinancial assets	40		—		40		—
Other	3		1		(1)		(1)
Net cash provided by (used in) investing activities	58		(7)		(822)		(17)
FINANCING ACTIVITIES:
Repayments of debt	(300)		(59)		(660)		(147)
Proceeds from issuance of debt, net of issuance costs of $9 million	—		—		741		—
Net proceeds from sales of common stock under employee stock incentive plans	—		—		7		6
Tax payments related to vesting of stock units	(5)		—		(52)		(25)
Dividends and dividend equivalents paid	(77)		(77)		(236)		(236)
Repurchases of common stock	(300)		—		(434)		(272)
Net cash provided by (used in) financing activities	(682)		(136)		(634)		(674)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	1		(37)		3		(20)
Change in cash, cash equivalents and restricted cash	(82)		146		(387)		37
Beginning cash, cash equivalents and restricted cash	701		737		1,006		846
Ending cash, cash equivalents and restricted cash	$                   619		$                   883		$                   619		$                   883

 

GEN DIGITAL INC. Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (2) (Unaudited, in millions, except per share amounts)
	Three Months Ended
	January 2, 2026		December 27, 2024
Operating income (loss)	$                 433		$                 374
Stock-based compensation	52		33
Amortization of intangible assets	122		99
Restructuring and other costs	11		2
Acquisition and integration costs	2		6
Litigation costs	10		21
Legal contract dispute cost	—		42
Other	(1)		—
Operating income (loss) (Non-GAAP)	$                 629		$                 577
Operating margin	34.9 %		37.9 %
Operating margin (Non-GAAP)	50.7 %		58.5 %
Net income (loss)	$                 192		$                 159
Adjustments to net income (loss):
Stock-based compensation	52		33
Amortization of intangible assets	122		99
Restructuring and other costs	11		2
Acquisition and integration costs	2		6
Litigation costs	10		21
Legal contract dispute cost	—		42
Other	—		1
Non-cash interest expense	6		7
Change in fair value and impairment of non-marketable equity investments	10		30
Loss (gain) on sale of properties and nonfinancial assets	(16)		—
Total adjustments to GAAP income (loss) before income taxes	197		241
Adjustment to GAAP provision for income taxes	5		(50)
Total adjustment to income (loss), net of taxes	202		191
Net income (loss) (Non-GAAP)	$                 394		$                 350
Diluted net income (loss) per share	$                0.31		$                0.26
Adjustments to diluted net income (loss) per share:
Stock-based compensation	0.08		0.05
Amortization of intangible assets	0.20		0.16
Restructuring and other costs	0.02		0.00
Acquisition and integration costs	0.00		0.01
Litigation costs	0.02		0.03
Legal contract dispute cost	—		0.07
Other	—		0.00
Non-cash interest expense	0.01		0.01
Change in fair value and impairment of non-marketable equity investments	0.02		0.05
Loss (gain) on sale of properties and nonfinancial assets	(0.03)		—
Total adjustments to GAAP income (loss) before income taxes	0.32		0.39
Adjustment to GAAP provision for income taxes	0.01		(0.08)
Total adjustment to income (loss), net of taxes	0.33		0.31
Diluted net income (loss) per share (Non-GAAP)	$                0.64		$                0.56
Diluted weighted-average shares outstanding	618		623
Diluted weighted-average shares outstanding (Non-GAAP)	618		623
	Nine Months Ended
	January 2, 2026		December 27, 2024
Net cash provided by (used in) operating activities	$                1,066		$                   748
Adjustments to net cash provided by (used in) operating activities:
Purchases of property and equipment	(19)		(12)
Free cash flow (Non-GAAP)	$                1,047		$                   736

(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
	January 2, 2026		December 27, 2024
Cyber Safety Platform	$                   819		$                  799
Trust-Based Solutions	421		187
Total net revenues	$                1,240		$                  986
Direct revenues	$                1,025		$                  871
Partner revenues	215		115
Total net revenues	$                1,240		$                  986
Total bookings	$                1,319		$               1,035
	As of
	January 2, 2026		December 27, 2024
Total paid customers	78		67

 

 

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 intangibles 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. 

Legal contract dispute cost: During fiscal 2025, we incurred charges in connection with an e-commerce partner settlement. In order to resolve all open disputes with the partner, we entered into a legal settlement agreement which included our release of claims to valid outstanding accounts receivable totaling $66 million, which were charged off as G&A expense in fiscal 2025. We exclude these charges and benefits when associated with a significant matter because we do not believe they are normal, recurring, or 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 enhance 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 Jason Starr		Media Contact Audra Proctor
Gen		Gen
IR@GenDigital.com		Press@GenDigital.com

 

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SOURCE Gen Digital Inc.

FAQ

What were Gen's Q3 FY26 revenue and EPS results (GEN)?

Gen reported Q3 revenue of $1,240M and GAAP diluted EPS $0.31. According to the company, revenue was up 26% year-over-year and GAAP EPS rose 22%, reflecting continued platform growth and operating performance.

How did Gen's non-GAAP bookings and free cash flow perform in Q3 FY26 (GEN)?

Gen reported non-GAAP bookings of $1,319M and YTD free cash flow $1,047M. According to the company, bookings rose 27% and year-to-date free cash flow increased 42%, supporting investment and shareholder returns.

What FY26 guidance did Gen (GEN) provide after Q3 results?

Gen raised FY26 non-GAAP revenue guidance to $4.955B–$4.975B and set EPS at $2.54–$2.56. According to the company, the update tightens the top-end revenue outlook versus prior guidance.

What dividend did Gen's board approve and when will it be paid (GEN)?

Gen's board approved a regular quarterly cash dividend of $0.125 per share, payable March 11, 2026. According to the company, shareholders of record as of February 16, 2026 will receive the dividend.

How much capital did Gen deploy to shareholders in Q3 and what does that mean for investors (GEN)?

Gen deployed nearly $700M of capital to shareholders during the quarter. According to the company, significant shareholder returns reflect strong cash generation but reduce available near-term liquidity for other uses.