EarningsQ1 2027 Earnings Report
MX:GEN Q1 2027 EPS Results
Actual EPS$12.83
Consensus EPS$12.45
Beat/MissBeat by +$0.38
One Year Ago EPS$11.57
MX:GEN Q1 2027 Revenue Results
Actual Revenue$24.15B
Expected Revenue$23.71B
Beat/MissBeat by +$437.47M
YoY Revenue Growth+6.28%
Earnings Announcement Details
QuarterQ1 2027
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:GEN Upcoming Earnings
Gen Digital's next earnings date is estimated for November 10, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:GEN Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call portrayed strong, broad-based growth with doubled-down investment in AI-enabled products and embedded financial wellness. Revenue and bookings grew 11% with EPS up 19%; Trust-Based Solutions and Engine Marketplace showed particularly robust expansion (bookings +25%, Engine >$0.5B run rate). Cash flow, liquidity, margin durability (50% operating margin) and shareholder returns were highlighted as strengths. The primary headwinds are mix-driven gross margin pressure from marketplace revenue-share models, elevated interest expense, and increased R&D and go-to-market investment that may moderate near-term EPS flow-through. New initiatives (MoneyLion One, agentic AI monetization) are promising but early-stage, introducing timing risk for some of the upside. Overall, positives (growth, margins, cash flow, product/AI momentum) substantially outweigh the manageable mix and timing risks.Company Guidance
Revenue and Bookings Growth
Revenue grew 11% year-over-year to $1.34 billion and bookings grew 11% year-over-year to $1.28 billion (Q1). Company raised fiscal 2027 revenue guidance to $5.375B-$5.475B (9%-11% growth) and Q2 revenue guidance to $1.325B-$1.35B (9%-11% growth).
EPS and Operating Performance
Non-GAAP diluted EPS increased 19% year-over-year to $0.71, beating the prior guided range ($0.68-$0.70). Non-GAAP operating income grew 9% year-over-year with blended operating margin stable at 50%; Cyber Safety operating margin ~61% and Trust-Based Solutions margin ~30%.
Strong Cash Flow and Capital Returns
Generated $434M operating cash flow and $430M free cash flow in Q1. Ending cash $564M and total liquidity > $2.0B including $1.5B revolver. Returned $181M to shareholders ( $100M buybacks, $81M dividends) and paid down $45M of debt; net leverage reduced to ~2.95x.
Trust-Based Solutions and Engine Momentum
Trust-Based Solutions bookings increased 25% and revenue grew 24% year-over-year. Engine Marketplace passed a roughly $0.5B annual revenue run rate, added 30+ partners in the quarter, drove record revenue, and contributed to partner business growth of 31% (partner business >$1B ARR). Network inquiries exceed 425M annually.
Customer Growth, Monetization and Retention
Paid customers reached ~81 million (sequential growth, 11th straight quarter of sequential growth). Norton cross-sell penetration rose to 27% (+1 point). Higher-tier Norton memberships scaled to nearly $0.5B in annualized bookings. ARPU is 8%-10% higher than two years ago; membership adoption across Norton/Avast/Avira >60% with retention near record highs.
AI-Driven Product Innovation and Threat Protection
Proprietary scam protection engine blocked over 500 million scam attacks in the quarter. Norton Neo (AI-native browser) doubled daily active users; Sage agent security deployed to ~25 million customers; Norton Financial Scan moved out of beta and is rolling into Norton 360; MoneyLion One launched to combine financial wellness and protection.
Operating Efficiency Gains
Profit per employee increased double digits after restructuring. Sales & marketing efficiency improved with AI-enabled creative showing ~25% efficiency gains in creative production; total OpEx decreased to 32% of sales (down 60 bps year-over-year).
MX:GEN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed