Gen Digital (GEN) Q2 2027 Earnings Report
MX:GEN Q2 2027 EPS Results
- Actual EPS
- MXN 13.90
- Consensus EPS
- MXN 13.51
- Beat/Miss
- Beat by +MXN 0.39
- One Year Ago EPS
- MXN 11.65
MX:GEN Q2 2027 Revenue Results
- Actual Revenue
- MXN 25.72B
- Expected Revenue
- MXN 25.17B
- Beat/Miss
- Beat by +MXN 545.42M
- YoY Revenue Growth
- +12.21%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
MX:GEN Upcoming Earnings
Gen Digital's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:GEN Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with double-digit revenue, bookings, operating income, EPS, and free-cash-flow performance; record customer scale; strong growth in Trust-Based Solutions and partner channels; stable 50% consolidated operating margins; and raised fiscal 2027 guidance. The main challenges were that Cyber Safety growth remained at 5%, MoneyLion One adoption was not yet material, agentic AI revenue contribution remains several periods away, and the company is responding to rapidly increasing scam and breach activity.
Company Guidance
Gen expects Q3 revenue of $1.365 billion to $1.39 billion, up 10% to 12%, and Q3 non-GAAP EPS of $0.73 to $0.75, representing growth of 15% to 18%; fiscal 2027 revenue guidance is $5.465 billion to $5.515 billion, reflecting growth of 10% to 11% versus prior guidance of 9% to 11%, while fiscal 2027 non-GAAP EPS guidance is $2.93 to $2.98, up 16% to 18% year-over-year versus the prior guidance range of 14% to 18%. Gen expects high teens earnings growth this year, supports its mid- to high teens EPS growth outlook for fiscal year '27, will manage Cyber Safety to mid-single-digit revenue growth and a 60% plus operating margin, and will manage Trust-Based Solutions on a Rule of 50 with 30% margin for 20% growth; agentic capabilities are not expected to contribute materially to revenue in this fiscal year, while financial wellness synergies are expected to ramp in the second half and run their run rate or accelerate their run rate through fiscal year '28.
- Another Beat-and-Raise QuarterQ2 revenue grew 12% to $1.37 billion, exceeding the high end of guidance. Bookings increased 10% to $1.35 billion, marking the sixth consecutive quarter of double-digit bookings growth, while operating profit dollars rose 10% and non-GAAP diluted EPS increased 19% year-over-year to $0.74, above the guided range of $0.71 to $0.73.
- Raised Fiscal 2027 OutlookFiscal 2027 revenue guidance was raised and narrowed to $5.465 billion to $5.515 billion, representing growth of 10% to 11% versus prior guidance of 9% to 11%. Non-GAAP EPS guidance was raised to $2.93 to $2.98, representing 16% to 18% year-over-year growth versus the prior range of 14% to 18%. The company expects Q3 revenue of $1.365 billion to $1.39 billion, up 10% to 12%, and Q3 EPS of $0.73 to $0.75, up 15% to 18%.
- Paid Customer GrowthPaid customers reached 83 million, up 2 million sequentially and 6 million from a year ago, compared with 81 million in the prior quarter and 77 million last year.
- Cyber Safety Growth and Record MarginCyber Safety revenue grew 5% and bookings increased mid-single digits, supported by customers migrating to all-in-one memberships, adopting multiple point products, and continued customer upsells and upgrades. Cyber Safety operating margin reached a record 62%, and the company continues to manage the segment toward mid-single-digit revenue growth and a 60% plus operating margin.
- Norton 360 Scale and Membership ExpansionNorton 360 scaled to more than a $1.7 billion run rate and has been growing consistently at or above mid-single digit rates. Higher-tier Norton 360 memberships reached another record high as a percentage of total membership, while Norton cross-sell penetration approached 30% and Norton cross-sells increased double digits in the quarter.
- Higher Retention and ARPU from Multiproduct AdoptionAs members move to higher membership tiers and multiproduct offerings, retention and average revenue per user for those cohorts are increasing by 5 to 10 points. The company also reported its highest renewal rate in several quarters and, according to the CEO, the highest renewal rate across its brands in the quarter.
- Trust-Based Solutions MomentumTrust-Based Solutions bookings increased 24% and revenue increased 26%. The growth was driven by financial wellness adoption, Engine's diversified partner and vertical strategy, and continued performance from the identity portfolio.
- Financial Wellness and Instacash AdoptionInstacash delivered another strong quarter of origination volume growth, onboarded a record number of new users, and increased usage as measured by advances per user. MoneyLion One membership showed promising early engagement as members shifted more savings and direct deposits to MoneyLion.
- Engine Marketplace ExpansionEngine's top-of-funnel matched product inquiries, a proxy for consumer interest in its marketplace and product offerings, more than doubled versus last year. The company added 18 new partners during the quarter and reported an even larger sales pipeline of partners to be onboarded in coming quarters.
- Partner Channel AccelerationPartner-channel revenue grew 40% to $295 million, with double-digit growth across employee benefits, financial marketplace, and telco channels. Partner revenue now represents more than 20% of total revenue. Employee-benefits growth was the highest in more than five quarters, and the Norton Money Workplace qualified pipeline exceeded $30 million ahead of enrollment season.
- Stable Trust-Based Solutions MarginTrust-Based Solutions margin remained stable at 30% despite continued investment in growth categories. Management reiterated its intention to manage the segment around approximately 30% margin while pursuing a business model of 20% growth and 30% margin.
- Operating Leverage and AI-Driven EfficiencyQ2 operating margin remained stable at 50%, while operating expenses declined to 30% of sales, down 150 basis points sequentially and 230 basis points year-over-year. AI-driven efficiencies included producing 4 times as many advertising assets as last year, resolving roughly half of customer-support contacts end-to-end, and having 75% of code shipped in the first half AI-written, with engineering productivity up 20% since the beginning of the fiscal year.
- Strong Cash Flow and Shareholder ReturnsThe company generated $326 million of operating cash flow and $323 million of free cash flow, ended the quarter with $589 million in cash, and reduced net leverage below 2.9x after paying down $45 million of debt. It spent nearly $250 million on dividends and share repurchases, including $171 million of share repurchases and $76 million of dividends, with $1.8 billion remaining under the current repurchase authorization.
- Continued Product and Platform InvestmentGen is redesigning Norton 360 with Next-Gen VPN, scam protection, and Safe AI; connecting LifeLock breach alerts with on-demand AI-driven resolution; and expanding MoneyLion customer acquisition toward monthly active users, higher-income cohorts, and deeper product relationships. Norton 360 beta engagement increased double digits, and the redesigned LifeLock site lifted mobile conversion by double digits.
- Growing Platform Scale and Cross-Sell IntelligenceThe Gen platform reached 500 million users and endpoints, connected nearly 120 million financial accounts, and worked with more than 1,300 partners across 25 verticals. The AI recommender lifts revenue from new Norton cross-sells by mid-single digits, and the company said AI-driven remarketing is scaling cross-sell activity.
- Agent Trust Hub and AI Security DevelopmentGen expanded its AI strategy from one assistant to three connected layers: AI embedded in products, protection for people using AI agents, and trusted infrastructure for agents to transact safely. Skills scanned and marked safe by Agent Trust Hub technology in a leading agent marketplace have been installed more than 100 million times. Engine also launched an insurance-shopping experience for AI agents in September.
- Financial Wellness Synergy ProgressManagement said the embedded financial-wellness synergies remain on track. Norton Money Workplace uses white-labeled MoneyLion technology for the employee-benefits channel, while marketplace capabilities are being incorporated into LifeLock, Norton Money, and Gen partnerships such as Equifax. The company expects the synergy contribution to ramp in the second half and run at or accelerate its run rate through fiscal year 2028.
MX:GEN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2027 (Q3) | 13.88- | 12.02 | ― | ― |
| Oct 28, 2026 | 2027 (Q2) | 13.5113.90 | 11.65 | 19.35% (+2.25) | |
| Aug 06, 2026 | 2027 (Q1) | 12.9413.34 | 12.02 | 10.94% (+1.32) | |
| May 07, 2026 | 2026 (Q4) | 12.2112.59 | 11.08 | 13.56% (+1.50) | |
| Feb 05, 2026 | 2026 (Q3) | 11.9112.02 | 10.52 | 14.29% (+1.50) | |
| Nov 06, 2025 | 2026 (Q2) | 11.4611.65 | 10.14 | 14.81% (+1.50) | |
| Aug 07, 2025 | 2026 (Q1) | 11.2712.02 | 9.96 | 20.75% (+2.07) | |
| May 06, 2025 | 2025 (Q4) | 10.9011.08 | 9.96 | 11.32% (+1.13) | |
| Jan 30, 2025 | 2025 (Q3) | 10.3510.52 | 9.21 | 14.29% (+1.32) | |
| Oct 30, 2024 | 2025 (Q2) | 10.1310.14 | 8.83 | 14.89% (+1.32) |
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