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 Digital's fiscal first quarter reflected a divergence between its two segments, as Trust-Based Solutions growth powered revenue higher while the Cyber Safety Platform faced headwinds from the prior year's extra week. Management attributed the top-line performance primarily to continued expansion in Financial Wellness offerings, which also lifted the Americas revenue share to 72% from 70%. Although operating income was flat, net income jumped 59% to $215 million, benefiting from a $32 million decline in interest expense and a lower effective tax rate. The quarter also saw a $22 million increase in restructuring costs related to the Fiscal 2027 Plan, which pressured margins.
Revenue
$1.34B
+6.28% YoY
EPS (Diluted)
$0.36
+63.64% YoY
Gross Margin
77.0%
-1.7 pts YoY
Operating Income
$443M
-0.67% YoY
Source: SEC XBRL
Gen Digital (GEN) reported Q1 FY2027 revenue of $1.34B, up 6.3% year over year. Operating margin was 33.2%, down 2.3 points from 35.5% a year earlier. Operating cash flow was $434M, up 6.1% year over year. GEN's fiscal Q1 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.71 | 0.70 | Beat +2.0% |
| Mar 2026 | 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% |
2 reported segments · SEC XBRL
Segment revenue totals $1.34B, which is the $1.34B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure GEN itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Net revenues increased $79 million, with Trust-Based Solutions up $102 million partially offset by a $23 million decline in Cyber Safety Platform; the extra week in the prior year had an $87 million adverse impact on comparisons.
Source: 10-Q Item 2 MD&A
Operating income remained nearly flat at $443 million as higher cost of revenues and operating expenses, including a $22 million increase in restructuring costs, offset revenue gains.
Source: 10-Q Item 2 MD&A
Net income increased $80 million to $215 million, driven by a $32 million decrease in interest expense and a lower effective tax rate of 33% compared to 55% in the prior year.
Source: 10-Q Item 2 MD&A
Restructuring and other costs rose $22 million, primarily due to a $19 million increase in severance and termination benefits related to the newly announced Fiscal 2027 Plan.
Source: 10-Q Item 2 MD&A
Total bookings reached $1,284 million, up from $1,202 million, and total paid customers grew to 81 million from 76 million, indicating healthy demand across both segments.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
Gen operates in highly competitive markets with rapid technological changes; failure to innovate or compete effectively could result in loss of market share and revenue.
Source: 10-Q Item 1A Risk Factors
The integration of AI, including generative AI, exposes the company to regulatory, privacy, intellectual property, cybersecurity, and reputational risks, and could lead to significant liabilities.
Source: 10-Q Item 1A Risk Factors
Revenue and operating results depend significantly on retaining existing customers, increasing cross-sell, and adding new paying users; declining retention or failure to convert free users could materially harm the business.
Source: 10-Q Item 1A Risk Factors
The acquisition of MoneyLion and other transactions create integration challenges, potential liabilities, and may divert management attention, impacting financial results and growth prospects.
Source: 10-Q Item 1A Risk Factors
The company's systems and sensitive customer data are frequent targets of cybersecurity attacks; a significant breach could lead to reputational harm, legal penalties, and loss of customer trust.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.34 $B | 1.26 $B | +6.28% |
Cost of Revenue $M | 307.00 $M | 267.00 $M | +14.98% |
Gross Profit $B | 1.03 $B | 0.99 $B | +3.94% |
Operating Income $M | 443.00 $M | 446.00 $M | -0.67% |
Net Income $M | 215.00 $M | 135.00 $M | +59.26% |
EPS (Basic) $ | 0.36 $ | 0.22 $ | +63.64% |
EPS (Diluted) $ | 0.36 $ | 0.22 $ | +63.64% |
R&D Expense $M | 118.00 $M | 109.00 $M | +8.26% |
Answers draw on this SEC filing and the data on this page
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.
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.
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