Key Highlights

  • Consensus EPS of 0.72 sits within second-quarter non-GAAP EPS guidance of 0.71 to 0.73, against first-quarter 0.71.
  • Consensus revenue of USD 1.34 billion sits within second-quarter revenue guidance of USD 1.325 billion to USD 1.35 billion.
  • Management raised fiscal 2027 revenue guidance to USD 5.375 billion to USD 5.475 billion, with EPS at 2.87 to 2.97.
  • First-quarter net revenues were USD 1,336 million against USD 1,257 million, with diluted EPS of 0.36 against 0.22.

Gen Digital (NASDAQ:GEN) reports second-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.72 on revenue of USD 1.34 billion, and the company has a market capitalization of USD 14.61 billion.

Gen Digital offers cyber safety and trust-based financial products through brands including Norton, Avast, LifeLock and MoneyLion. Fiscal first-quarter net revenues were USD 1,336 million against USD 1,257 million, and net income was USD 215 million against USD 135 million.

Estimates Against Second-Quarter Guidance

The EPS estimate of 0.72 is within second-quarter non-GAAP EPS guidance of 0.71 to 0.73, and above first-quarter non-GAAP EPS of 0.71 and diluted EPS of 0.36. The estimates table does not state its EPS basis. The revenue estimate of USD 1.34 billion is within guidance of USD 1.325 billion to USD 1.35 billion.

Management put second-quarter non-GAAP EPS growth at 15% to 18% and revenue growth at 9% to 11%. The first-quarter non-GAAP EPS of 0.71 compared with guidance of 0.68 to 0.70.

What Management Guided and What It Left Open

Management raised fiscal 2027 revenue guidance to USD 5.375 billion to USD 5.475 billion, growth of 9% to 11%, from growth of 8% to 10%. It raised non-GAAP EPS guidance to 2.87 to 2.97, growth of 14% to 18%.

Management left open mix effects on margin, noting that fast-growing marketplace categories carry a lower gross margin because of revenue share but a lower operating expense burden. Non-GAAP gross margin of 82.0% declined slightly on that shift.

Bookings, Customers and Segment Detail

Total bookings were USD 1.284 billion, up 11% on an adjusted basis, and total paid customers were 81 million against 76 million. Cyber Safety revenue was USD 846 million and Trust-Based Solutions revenue was USD 490 million, up 24% on an adjusted basis.

Non-GAAP operating income was USD 668 million at a 50.0% margin. Free cash flow was USD 430 million, and net leverage was 2.95 times against a target of 3.0 times.

Income Statement Lines, Cash and Capital Returns

Gross profit was USD 1,029 million against USD 990 million, and operating expenses were USD 586 million against USD 544 million, including restructuring and other costs of USD 32 million against USD 10 million. Operating income was USD 443 million against USD 446 million, and income before income taxes was USD 323 million against USD 300 million.

Cash and cash equivalents were USD 533 million, and USD 1,994 million remained under the repurchase authorization. The company returned USD 181 million to shareholders, and the dividend was 0.125 per share. The estimates table lists a market capitalization of USD 14.61 billion.

Comparisons to Make in the Report

Reported EPS against 0.72 and revenue against USD 1.34 billion are the headline comparisons. Other markers are bookings, paid customers and the fiscal 2027 guidance ranges.