Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
GEN delivered strong FY2026 results with revenue surging 27.1% to $5.0B and net income jumping 51.3% to $973M, driven by robust operating leverage, though the company carries a high debt load and a current ratio well below 1.0.
Revenue
$5B
+27.06% YoY
EPS (Diluted)
$1.57
+52.43% YoY
Gross Margin
78.5%
-1.8 pts YoY
Operating Income
$2.12B
+31.68% YoY
Source: SEC XBRL
Gen Digital (GEN) reported FY2026 revenue of $5B, up 27.1% year over year. Operating margin was 42.4%, up 1.5 points from 40.9% a year earlier. Operating cash flow was $1.54B, up 26.5% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.71 | 0.70 | Beat +1.6% |
| Mar 2026This filing | 0.67 | 0.66 | Beat +2.0% |
| Dec 2025 | 0.64 | 0.64 | Beat +0.3% |
| Sep 2025 | 0.62 | 0.62 | Beat +0.6% |
Reported EPS of $0.67 versus the $0.66 analyst consensus — a +2.0% beat for Mar 2026.
Compiled by AI from this SEC filing
Total revenue grew 27.1% year-over-year to $5.0B (from $3.935B), reflecting strong demand across GEN's product and service portfolio. This top-line expansion significantly outpaced prior-year growth rates, signaling meaningful business momentum.
Source: 10-K Income Statement
Operating income rose 31.7% to $2.12B, pushing the operating margin up approximately 150 basis points to 42.4% from 40.9% in the prior year. This demonstrates that revenue growth is translating efficiently into profitability despite higher costs.
Source: 10-K Income Statement
Cost of revenue increased 38.8% to $1.077B, outpacing revenue growth of 27.1%, which caused gross margin to compress by approximately 180 basis points to 78.5% from 80.3%. This suggests some cost pressure at the gross level that management will need to monitor.
Source: 10-K Income Statement & Key Ratios
Share buybacks more than doubled to $634M (+133.1% YoY) while dividends remained stable at $312M, reflecting management's confidence in cash generation and commitment to returning capital to shareholders. Total capital returned to shareholders reached approximately $946M in FY2026.
Source: 10-K Cash Flow Statement
R&D expense increased 24.3% to $409M, keeping pace with revenue growth and underscoring GEN's commitment to product innovation and competitive positioning. R&D as a percentage of revenue remained relatively stable at approximately 8.2%.
Source: 10-K Income Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
GEN carries $8.196B in long-term debt against stockholders' equity of $2.611B, resulting in a debt-to-equity ratio of approximately 4.97x. This elevated leverage increases interest expense obligations and limits financial flexibility, particularly in a rising interest rate environment. Any deterioration in operating cash flows could strain the company's ability to service its debt.
Source: 10-K Balance Sheet & Key Ratios
GEN's current ratio stands at just 0.40, meaning current liabilities of $2.71B significantly exceed current assets of $1.081B. This negative working capital position suggests the company relies heavily on operating cash flows and potentially revolving credit facilities to meet near-term obligations. A disruption in cash generation could create short-term liquidity stress.
Source: 10-K Balance Sheet & Key Ratios
Gross margin declined approximately 180 basis points to 78.5% as cost of revenue grew 38.8%, well ahead of the 27.1% revenue growth rate. If cost pressures persist or intensify, further margin erosion could weigh on profitability despite strong top-line growth. Management's ability to control input costs will be critical to maintaining the company's high-margin profile.
Source: 10-K Income Statement & Key Ratios
Investing cash flow swung to -$1.011B from -$100M in the prior year, a 911% increase in outflows, suggesting a major acquisition or capital expenditure program was undertaken in FY2026. While such investments may drive future growth, they also increase execution risk and could pressure free cash flow if returns are delayed. The nature and strategic rationale of these investments are key to assessing their long-term impact.
Source: 10-K Cash Flow Statement
Total assets grew only 0.6% to $15.589B despite strong revenue growth, while current assets fell 25.1%, implying a large portion of the asset base consists of intangibles, goodwill, or long-term assets. A significant impairment of these assets could materially impact the balance sheet and reported earnings. Investors should monitor the composition and valuation of non-current assets closely.
Source: 10-K Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.00 $B | 3.94 $B | +27.06% |
Cost of Revenue $B | 1.08 $B | 0.78 $B | +38.79% |
Gross Profit $B | 3.92 $B | 3.16 $B | +24.18% |
Operating Income $B | 2.12 $B | 1.61 $B | +31.68% |
Net Income $M | 973.00 $M | 643.00 $M | +51.32% |
EPS (Basic) $ | 1.59 $ | 1.04 $ | +52.88% |
EPS (Diluted) $ | 1.57 $ | 1.03 $ | +52.43% |
R&D Expense $M | 409.00 $M | 329.00 $M | +24.32% |
Answers draw on this SEC filing and the data on this page
Gen Digital's Q1 FY2027 results were characterized by robust Trust-Based Solutions growth and a sharp increase in net income, despite flat operating income and margin compression.
GEN delivered strong Q3 FY2026 revenue growth of 25.8% YoY to $1.24B, though margin compression and a high debt load remain key concerns for investors.
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