Key Highlights

  • Revenue grew 12% to USD 1.369 billion, topping a consensus estimate of USD 1.34 billion for the quarter.
  • Non-GAAP diluted EPS climbed 19% to USD 0.74, while GAAP diluted EPS more than doubled to USD 0.48.
  • Trust-Based Solutions revenue rose 26% to USD 511 million, and total paid customers reached a record 83 million.
  • Fiscal 2027 revenue guidance was raised to a range of USD 5.465 billion to USD 5.515 billion.

Gen Digital Inc. (NASDAQ:GEN) reported second-quarter fiscal 2027 revenue of USD 1.369 billion, up 12% from USD 1.220 billion a year earlier and above a consensus estimate of USD 1.34 billion. Non-GAAP diluted earnings per share were USD 0.74, up from USD 0.62 and above a consensus estimate of USD 0.72. On a GAAP basis, net income was USD 287 million, or USD 0.48 per diluted share, compared with USD 134 million, or USD 0.21 per share, a year earlier. The quarter ended October 2, 2026.

Total bookings were USD 1.347 billion, up 10%, marking a sixth straight quarter of double-digit growth according to CEO Vincent Pilette. Paid customers rose to 83 million from 77 million a year ago, an increase of 2 million from the prior quarter. Year-to-date operating cash flow was USD 760 million, up 45%, and free cash flow was USD 753 million, up 47%.

Segment Mix and Margin Detail

Cyber Safety Platform revenue was USD 858 million, up about 5% from USD 814 million, supported by higher-tier Norton 360 memberships and cross-sell activity. Trust-Based Solutions revenue was USD 511 million, up from USD 406 million, with bookings up 24%. Management attributed that growth to financial wellness adoption and the Engine marketplace. Partner revenue rose to USD 295 million from USD 210 million, while direct revenue reached USD 1.074 billion.

Non-GAAP operating income was USD 686 million, up 10%, at a margin of 50.1% versus 51.1% a year earlier. Management cited segment margins of 62% in Cyber Safety and 30% in Trust-Based Solutions. GAAP operating income was USD 507 million, up 16%, at a 37.0% margin.

Capital returns continued in the quarter. Gen repurchased USD 171 million of stock and paid USD 76 million in dividends, bringing six-month repurchases to USD 271 million. Cash and restricted cash stood at USD 589 million, against current and long-term debt of USD 1.080 billion and USD 7.036 billion. The board approved a quarterly dividend of USD 0.125 per share, payable on December 9, 2026, to holders of record on November 16, 2026.

Raised Guidance and Strategic Commentary

For the third quarter, the company guided to non-GAAP revenue of USD 1.365 billion to USD 1.390 billion and EPS of USD 0.73 to USD 0.75. Full-year non-GAAP EPS guidance moved to USD 2.93 to USD 2.98 from USD 2.87 to USD 2.97. Management also described a mid- to high-teens EPS growth outlook for the fiscal year and a plan to manage Cyber Safety for mid-single-digit revenue growth with a margin above 60%.

On acquisitions, the CEO said the organic plan stands on its own and that the company is not working on a transformative deal. He added that agentic AI is not anticipated to contribute materially to revenue this fiscal year, though the company is building products such as Agent Trust Hub for that market.

Datapoints Worth Following

Four items frame the next report. The first is the third-quarter revenue range of USD 1.365 billion to USD 1.390 billion alongside EPS of USD 0.73 to USD 0.75. The second is the paid customer count, which stood at 83 million after adding 6 million over twelve months. The third is Trust-Based Solutions, where revenue grew 26% and management is focused on margin quality near 30%. The fourth is the December 9 dividend payment and the pace of repurchases after USD 271 million in the first half.