Gen Delivers Another Double-Digit Growth Quarter in Q2 FY27 and Raises FY27 Outlook
Gen Digital Inc. (GEN) filed an SEC Form 8-K — Results of Operations and Financial Condition. NEWS RELEASE CONTACTS Investor Contact Ben Lu Media Contact Audra Proctor Gen Gen IR@GenDigital.com Press@GenDigital.com Gen Delivers Another Double-Digit Growth Quarter in Q2 FY27 and Raises FY27 Outlook TEMPE, Ariz. & PRAGUE – October 28, 2026 – Gen Digital Inc. (NASDAQ: GEN),
How this was made
The 30-second read
Why it matters
The raised guidance signals stronger demand for its cybersecurity portfolio, likely boosting investor confidence.
Market read
Guidance lift from a large‑cap tech firm can move the broader sector and influence market sentiment.
What to watch
Potential inflation‑driven expense growth and competitive pricing could temper the upside.
Gen Delivers Another Double-Digit Growth Quarter in Q2 FY27 and Raises FY27 Outlook
Q2 revenue, bookings, GAAP operating income, GAAP diluted EPS, year-to-date operating cash flow and year-to-date free cash flow all increased year over year, while Gen raised both FY27 non-GAAP revenue and EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 net revenuesGAAP | $1.37B | – | up 12% |
| Six-month net revenuesGAAP | $2.71B | – | – |
| Q2 cost of revenuesGAAP | 330M | – | – |
| Six-month cost of revenuesGAAP | 637M | – | – |
| Q2 gross profitGAAP | 1.04B | – | – |
| Six-month gross profitGAAP | 2.07B | – | – |
| Q2 sales and marketing expenseGAAP | 298M | – | – |
| Q2 research and development expenseGAAP | 112M | – | – |
| Q2 general and administrative expenseGAAP | 66M | – | – |
| Q2 amortization of intangible assetsGAAP | 56M | – | – |
| Q2 restructuring and other costsGAAP | — | – | – |
| Six-month total operating expensesGAAP | 1.12B | – | – |
| Q2 operating incomeGAAP | $507M | – | up 16% |
| Six-month operating incomeGAAP | 950M | – | – |
| Q2 operating marginGAAP | 37.0% | – | – |
| Q2 operating incomenon-GAAP | $686M | – | up 10% |
| Q2 operating marginnon-GAAP | 50.1% | – | – |
| Q2 interest expenseGAAP | −$123M | – | – |
| Q2 other income (expense), netGAAP | 2M | – | – |
| Q2 income before income taxesGAAP | 386M | – | – |
| Q2 income tax expenseGAAP | 99M | – | – |
| Q2 net incomeGAAP | $287M | – | – |
| Six-month net incomeGAAP | $502M | – | – |
| Q2 diluted EPSGAAP | $0.48 | – | up 122% |
| Six-month diluted EPSGAAP | $0.83 | – | – |
| Q2 basic EPSGAAP | $0.48 | – | – |
| Q2 non-GAAP net incomenon-GAAP | $444M | – | – |
| Q2 non-GAAP diluted EPSnon-GAAP | $0.74 | – | up 19% |
| Q2 total bookingsother | $1.35B | – | up 10% |
| Six-month net cash provided by operating activitiesGAAP | $760M | – | up 45% |
| Six-month free cash flownon-GAAP | $753M | – | up 47% |
| Q2 net cash provided by operating activitiesGAAP | 326M | – | – |
| Cash, cash equivalents and restricted cashGAAP | $589M | – | – |
| Current portion of long-term debtGAAP | $1.08B | – | – |
| Long-term debtGAAP | $7.04B | – | – |
| Total assetsGAAP | $15.55B | – | – |
| Total liabilitiesGAAP | 12.81B | – | – |
| Total stockholders' equity (deficit)GAAP | 2.74B | – | – |
| Total paid customersother | 83M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cyber Safety PlatformIncludes security and privacy products, as well as cyber safety comprehensive suites. | $858M | – | – |
| Trust-Based SolutionsIncludes identity, reputation, and financial wellness products. | $511M | – | – |
| Direct revenuesReflects subscriptions sold directly through e-commerce or mobile channels, and revenue generated from financial transactions directly made through Gen properties or marketplaces. | $1.07B | – | – |
| Partner revenuesReflects partner-sourced and channel revenue via retailers, employee benefits, telcos, publishers, and strategic partnerships. | $295M | – | – |
Q3 Fiscal Year 2027 and Fiscal Year 2027 outlook
- RevenueQ3 FY27 Revenue expected to be in the range of $1.365 billion to $1.390 billion; FY27 Revenue expected to be in the range of $5.465 billion to $5.515 billion
- NoteQ3 FY27 EPS expected to be in the range of $0.73 to $0.75
- NoteFY27 EPS expected to be in the range of $2.93 to $2.98
Capital returns
- Repurchases of common stock were $(171) million for the three months ended October 2, 2026.
- Repurchases of common stock were $(271) million for the six months ended October 2, 2026.
- Dividends and dividend equivalents paid were $(76) million for the three months ended October 2, 2026.
- Dividends and dividend equivalents paid were $(157) million for the six months ended October 2, 2026.
- The Board of Directors approved a regular quarterly cash dividend of $0.125 per common share, payable on December 9, 2026, to shareholders of record as of November 16, 2026.
What drove it
- Gen reported its sixth consecutive quarter of double-digit bookings growth.
- Total paid customers were 83 million as of October 2, 2026, compared with 77 million as of October 3, 2025.
- Cyber Safety Platform revenue was $858 million and Trust-Based Solutions revenue was $511 million.
- Direct revenues were $1,074 million and partner revenues were $295 million.
- The company cited strong product engagement and retention, innovation across its brands, and continued investment in its platform.
Concerns
- Q2 GAAP operating margin was 37.0%, while Q2 non-GAAP operating margin was 50.1%, compared with 51.1% in the prior-year quarter.
- Cost of revenues was 330 million in Q2, compared with 266 million in the prior-year quarter.
- Current portion of long-term debt was $1,080 million as of October 2, 2026.
- The filing identifies risks including customer retention, conversion of non-paying customers to paying customers, returns on direct customer-acquisition investment, product acceptance, litigation, financing and debt repayment activities, tax changes, foreign-currency movements, and macroeconomic conditions.
What to watch
- Q3 FY27 non-GAAP revenue guidance of $1.365 billion to $1.390 billion.
- Q3 FY27 non-GAAP EPS guidance of $0.73 to $0.75.
- FY27 non-GAAP revenue guidance of $5.465 billion to $5.515 billion, compared to prior guidance of $5.375 billion to $5.475 billion.
- FY27 non-GAAP EPS guidance of $2.93 to $2.98, compared to prior guidance of $2.87 to $2.97.
- Bookings, paid-customer growth, engagement and retention across the Cyber Safety Platform and Trust-Based Solutions.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were $589 million as of October 2, 2026, compared with $411 million as of April 3, 2026.
- Current portion of long-term debt was $1,080 million as of October 2, 2026, compared with $181 million as of April 3, 2026.
- Long-term debt was $7,036 million as of October 2, 2026, compared with $8,015 million as of April 3, 2026.
- Net cash provided by operating activities was $760 million for the six months ended October 2, 2026, compared with $525 million for the six months ended October 3, 2025.
- Purchases of property and equipment were $(7) million for the six months ended October 2, 2026.
- Free cash flow was $753 million for the six months ended October 2, 2026, compared with $512 million for the six months ended October 3, 2025.
Analysis
Gen reported Q2 FY27 GAAP revenue of $1,369 million, up 12%, and total bookings of $1,347 million, up 10%. Management described this as its sixth consecutive quarter of double-digit bookings growth. Total paid customers were 83 million as of October 2, 2026, compared with 77 million as of October 3, 2025. Revenue was split between $858 million from the Cyber Safety Platform and $511 million from Trust-Based Solutions, while direct revenues of $1,074 million exceeded partner revenues of $295 million.
GAAP operating income was $507 million, up 16%, and GAAP diluted EPS was $0.48, up 122%. GAAP net income was $287 million, compared with $134 million in the prior-year quarter. Non-GAAP operating income was $686 million, up 10%, and non-GAAP diluted EPS was $0.74, up 19%. Q2 GAAP operating margin was 37.0% versus 35.9%, while non-GAAP operating margin was 50.1% versus 51.1%. Cost of revenues increased to 330 million from 266 million, and total operating expenses were 532 million compared with 516 million.
Cash generation strengthened over the first half. Six-month operating cash flow was $760 million, up 45%, and non-GAAP free cash flow was $753 million, up 47%. Cash, cash equivalents and restricted cash were $589 million as of October 2, 2026. The balance sheet also showed $1,080 million of current portion of long-term debt and $7,036 million of long-term debt. Gen repurchased $(271) million of common stock and paid $(157) million in dividends and dividend equivalents during the six-month period.
The outlook was raised for FY27. Gen now expects non-GAAP revenue of $5.465 billion to $5.515 billion, compared to prior guidance of $5.375 billion to $5.475 billion, and non-GAAP EPS of $2.93 to $2.98, compared to $2.87 to $2.97 previously. For Q3 FY27, the company expects non-GAAP revenue of $1.365 billion to $1.390 billion and non-GAAP EPS of $0.73 to $0.75. The principal reported points for investors are the persistence of bookings and customer growth, the difference between expanding GAAP operating margin and lower non-GAAP operating margin, cash-flow growth, and execution against the increased full-year ranges.
Management, verbatim
We delivered our sixth consecutive quarter of double-digit bookings growth.
Vincent Pilette, CEO of Gen
We reached a record high customer count, alongside strong product engagement and retention.
Vincent Pilette, CEO of Gen
Customer demand is strong, and we remain disciplined about investment, efficiency and profitable growth.
Natalie Derse, CFO of Gen
Not in the filing
stated, not guessed- Q2 GAAP gross margin
- Q2 non-GAAP gross margin
- Q3 FY27 gross-margin guidance
- Q3 FY27 operating-expense guidance
- Q3 FY27 tax-rate guidance
- FY27 gross-margin guidance
- FY27 operating-expense guidance
- FY27 tax-rate guidance
- Prior-quarter comparisons for Q2 revenue, bookings, operating income, net income, EPS, segment revenue and paid customers
- Year-over-year percentage changes for individual segment revenue, direct revenues and partner revenues
- A prior outlook section from the previous earnings release for reported-results-versus-prior-guidance comparisons
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Gen Digital (NASDAQ: GEN) released its Q2 FY27 results and updated FY27 guidance.
Ticker impact
issued guidance raising FY27 revenue and EPS outlook
likely upward pressure as investors price in the raised guidance
The company reported 12% revenue growth, 122% EPS jump and increased FY27 guidance ranges, which typically supports a bullish reaction.
Market effects
Cybersecurity and digital‑identity firms may benefit from Gen's upbeat outlook.
U.S. equities could see modest gains as a large‑cap tech name lifts sentiment.
The guidance underscores growing demand for digital‑security solutions worldwide.
Counterpoint
Some analysts may argue the raised guidance is aggressive given macro cost pressures.
Key entities
- companyGen Digital Inc.
Cybersecurity and digital‑identity provider.
