Financial Performance - Gen Digital reported Q1 FY26 revenue of $1.257 billion, a 30% year-over-year increase[31] - Bookings increased by 32% year-over-year to $1.202 billion in Q1 FY26[31] - Operating income for Q1 FY26 was $650 million, a 15% year-over-year increase[31] - EPS for Q1 FY26 reached $0.64, a 20% year-over-year increase[31] - The company is raising FY26 revenue guidance to $4.80 - $4.90 billion and EPS guidance to $2.49 - $2.56[52] Segment Performance - Cyber Safety Platform revenue increased by 11% year-over-year to $869 million in Q1 FY26, with an operating margin of 61%[37] - Trust-Based Solutions revenue increased by 110% year-over-year to $388 million in Q1 FY26[39] Customer Metrics - Gen Digital has scaled total paid customers to 76.2 million[45] - MoneyLion has 23.7 million lifetime customers as of Q1 FY26[60] Balance Sheet and Cash Flow - The company's free cash flow was $405 million in Q1 FY26[47] - Gen Digital's Debt/EBITDA Net Leverage is 3.4x[49]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Q1 FY26 Performance Overview](index=1&type=section&id=Q1%20FY26%20Performance%20Overview) Gen Digital Inc. reported a strong start to FY26, with Q1 results exceeding expectations, driven by product innovation and increasing demand for protection, trust, and financial empowerment - FY26 is off to a strong start, with Q1 results beating expectations, powered by product innovation and rising demand for protection, trust, and financial empowerment[3](index=3&type=chunk) - Gen is scaling with a diverse portfolio spanning its Cyber Safety Platform and Trust-Based Solutions, employing an **AI-first strategy** to create smarter, more trusted, and personalized digital experiences[3](index=3&type=chunk) - The company's operating model, disciplined execution, and strategic clarity in growth investments are driving durable, profitable growth and expanding market opportunities through Trust-Based Solutions[4](index=4&type=chunk)[5](index=5&type=chunk) [Q1 FY26 GAAP Financial Highlights](index=1&type=section&id=Q1%20GAAP%20Results) Gen Digital Inc. reported Q1 FY26 GAAP revenue of $1,257 million, up 30%, with operating income rising but diluted EPS decreasing Q1 FY26 GAAP Financial Highlights | Metric | Q1 FY26 (GAAP) | Change YoY | | :---------------- | :------------- | :--------- | | Revenue | $1,257 million | Up 30% | | Operating income | $446 million | Up 7% | | Operating margin | 36% | Down 7 points | | Diluted EPS | $0.22 | Down 25% | | Operating cash flow | $409 million | Up 55% | | Bookings | $1,202 million | Up 32% | [Q1 FY26 Non-GAAP Financial Highlights](index=1&type=section&id=Q1%20Non-GAAP%20Results) On a non-GAAP basis, Gen Digital Inc. achieved Q1 FY26 revenue of $1,257 million, up 30%, with operating income increasing by 15% to $650 million Q1 FY26 Non-GAAP Financial Highlights | Metric | Q1 FY26 (Non-GAAP) | Change YoY | | :---------------- | :----------------- | :--------- | | Revenue | $1,257 million | Up 30% | | Operating income | $650 million | Up 15% | | Operating margin | 52% | Down 6 points | | Diluted EPS | $0.64 | Up 20% | [Guidance & Dividend](index=2&type=section&id=Guidance%20%26%20Dividend) [Q2 FY26 Non-GAAP Guidance](index=2&type=section&id=Non-GAAP%20Q2%20Fiscal%20Year%202026%20Guidance) Gen Digital Inc. projects Q2 FY26 non-GAAP revenue to be between $1,180 million and $1,210 million, with non-GAAP diluted EPS expected to range from $0.60 to $0.62 Q2 FY26 Non-GAAP Guidance | Metric | Q2 FY26 Non-GAAP Guidance | | :---------------- | :------------------------ | | Revenue | $1,180 million to $1,210 million | | EPS | $0.60 to $0.62 | [FY26 Non-GAAP Guidance](index=2&type=section&id=Raising%20Non-GAAP%20Fiscal%20Year%202026%20Guidance) Gen Digital Inc. has raised its full-year FY26 non-GAAP guidance, with revenue now expected to be in the range of $4,800 million to $4,900 million FY26 Non-GAAP Guidance Update | Metric | New FY26 Non-GAAP Guidance | Prior FY26 Non-GAAP Guidance | | :---------------- | :------------------------- | :--------------------------- | | Revenue | $4,800 million to $4,900 million | $4,700 million to $4,800 million | | EPS | $2.49 to $2.56 | $2.46 to $2.54 | [Quarterly Cash Dividend](index=2&type=section&id=Quarterly%20Cash%20Dividend) Gen's Board of Directors approved a regular quarterly cash dividend of $0.125 per common share, payable on September 10, 2025 - A quarterly cash dividend of **$0.125 per common share** was approved[5](index=5&type=chunk) - The dividend is payable on September 10, 2025, to shareholders of record as of August 18, 2025[5](index=5&type=chunk) [Company Information & Disclosures](index=2&type=section&id=Company%20Information%20%26%20Disclosures) [About Gen Digital Inc.](index=2&type=section&id=About%20Gen) Gen Digital Inc. (NASDAQ: GEN) is a global leader in Digital Freedom, offering trusted consumer brands and providing cybersecurity, online privacy, identity protection, and financial wellness solutions - Gen Digital Inc. (NASDAQ: GEN) is a global company focused on Digital Freedom through brands like Norton, Avast, LifeLock, and MoneyLion[7](index=7&type=chunk) - The company offers award-winning products in cybersecurity, online privacy, identity protection, and financial wellness[7](index=7&type=chunk) - Gen serves nearly **500 million users** in over **150 countries**, empowering safe, private, and confident digital lives[7](index=7&type=chunk) [Forward-Looking Statements & Risk Factors](index=2&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, identifiable by terms like 'expect' or 'will,' and warns that actual results may differ materially due to known and unknown risks - Statements using terms like 'expect' or 'will' are forward-looking, and actual results may differ materially due to various risks[8](index=8&type=chunk)[10](index=10&type=chunk) - Risk factors include impacts of acquisitions/divestitures, litigation, operating model execution, customer retention, new product development, market acceptance, and maintaining relationships[10](index=10&type=chunk) - Other risks involve stock price volatility, system vulnerabilities, changes in accounting/tax rules, and general macroeconomic conditions such as inflation and geopolitical conflicts[10](index=10&type=chunk) [Use of Non-GAAP Financial Information](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Gen Digital Inc. uses non-GAAP financial measures to provide supplemental information for understanding past performance and future prospects, which are not GAAP compliant - Non-GAAP measures (operating margin, income, net income, EPS, revenues, constant currency revenues) are used to enhance understanding of financial performance and future prospects[11](index=11&type=chunk) - Management uses non-GAAP measures for performance assessment, planning, forecasting, and evaluating management's compensation[11](index=11&type=chunk)[28](index=28&type=chunk) - Non-GAAP measures are supplemental, not a substitute for GAAP, and reconciliation is provided, except for forecasted guidance where it's unreasonably burdensome to estimate adjustments[11](index=11&type=chunk)[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 4, 2025, Gen Digital Inc.'s total assets increased to $16,360 million, driven by higher intangible assets and goodwill, while total liabilities also rose Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | July 4, 2025 (Millions) | March 28, 2025 (Millions) | Change (Millions) | | :------------------------- | :---------------------- | :------------------------ | :---------------- | | Total assets | $16,360 | $15,495 | +$865 | | Total liabilities | $13,995 | $13,226 | +$769 | | Total stockholders' equity (deficit) | $2,365 | $2,269 | +$96 | | Cash, cash equivalents and restricted cash | $828 | $1,006 | -$178 | | Intangible assets, net | $2,499 | $2,267 | +$232 | | Goodwill | $10,817 | $10,237 | +$580 | | Long-term debt | $8,575 | $7,968 | +$607 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended July 4, 2025, Gen Digital Inc. reported net revenues of $1,257 million, with gross profit rising, but total operating expenses increased, leading to a decrease in net income and diluted EPS Condensed Consolidated Statements of Operations Highlights | Income Statement Item | Three Months Ended July 4, 2025 (Millions) | Three Months Ended June 28, 2024 (Millions) | Change YoY (Millions) | | :-------------------------- | :----------------------------------------- | :------------------------------------------ | :-------------------- | | Net revenues | $1,257 | $965 | +$292 | | Cost of revenues | $267 | $190 | +$77 | | Gross profit | $990 | $775 | +$215 | | Total operating expenses | $544 | $358 | +$186 | | Operating income (loss) | $446 | $417 | +$29 | | Net income (loss) | $135 | $181 | -$46 | | Diluted net income (loss) per share | $0.22 | $0.29 | -$0.07 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended July 4, 2025, net cash from operating activities significantly increased, while investing activities resulted in a large outflow due to acquisitions, and financing activities generated a net inflow Condensed Consolidated

Core Viewpoint - Wall Street analysts expect Gen Digital (GEN) to report quarterly earnings of $0.60 per share, reflecting a year-over-year increase of 13.2%, with revenues projected at $1.18 billion, a 22.4% increase compared to the previous year [1]. Group 1: Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 0.9% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Group 2: Revenue Estimates - Analysts estimate 'Net Revenues- Cyber Safety Revenue- Direct customer revenues' to be $967.44 million, representing a 13.8% increase year-over-year [5]. - The consensus for 'Net Revenues- Total Cyber Safety Revenue' is projected to reach $1.09 billion, indicating a 15% year-over-year change [5]. - 'Net Revenues- Legacy Revenue' is expected to be $11.56 million, reflecting a decline of 17.5% year-over-year [6]. - The estimate for 'Net Revenues- Cyber Safety Revenue- Partner revenues' stands at $126.13 million, suggesting a 24.9% increase from the year-ago quarter [6]. Group 3: Stock Performance - Over the past month, Gen Digital shares have decreased by 3.7%, while the Zacks S&P 500 composite has increased by 1% [6]. - Gen Digital holds a Zacks Rank 3 (Hold), indicating that its performance is likely to align with the overall market in the near term [6].

Core Insights - Gen Digital Inc. (GEN) is set to report its first-quarter fiscal 2026 results on August 7, with expected non-GAAP revenues between $1.18 billion and $1.21 billion, reflecting a year-over-year growth of 22.4% [1][8] - The company anticipates non-GAAP earnings per share in the range of 59-61 cents, with a consensus estimate of 60 cents, indicating a year-over-year increase of 13.2% [2][8] - Factors contributing to GEN's performance include increased demand for cybersecurity products, particularly due to a rise in global hacking incidents, and the successful launch of new features like Genie Scam Protection [3][4] Revenue and Segment Performance - The Consumer Security segment is projected to generate revenues of approximately $730.9 million, representing a 20.4% year-over-year increase, while the Identity and Information Protection division is expected to see revenues of $440.8 million, indicating a growth of 28.1% [4] - The increase in client bookings, strong retention rates, and international expansion are expected to positively impact top-line growth [5] Market Challenges - Despite positive indicators, GEN's performance may be affected by a decline in IT spending due to high interest rates and inflation, leading enterprises to defer significant IT investments [6][8] - The broader economic environment, including macroeconomic and geopolitical challenges, is also anticipated to weigh on enterprise demand [6] Earnings Expectations - The company's earnings model suggests a strong likelihood of an earnings beat, supported by a positive Earnings ESP of 1.67% and a Zacks Rank of 3 [7]

Core Insights - Avast has been recognized as the Best Antivirus by Software Experts, highlighting its strong threat detection, wide platform support, and comprehensive privacy features [1][12] - The need for robust cybersecurity solutions is increasing due to evolving digital threats and growing user reliance on personal devices [1][10] Company Overview - Avast is a leading global provider of digital security software, offering real-time antivirus, privacy, and performance solutions for consumers and businesses [2][13] - The company supports over 435 million users worldwide and has received multiple certifications from independent labs [11][13] Product Features - Avast Premium Security includes malware detection, phishing protection, ransomware shields, and web threat prevention, available in single-device and multi-device plans [3][5] - The newly introduced Scam Guardian Pro feature provides multi-layered defense against online scams, including tools like Avast Assistant, Web Guard, and Email Guard [4][5] Performance Recognition - Avast has received numerous accolades, including the Best MacOS Security Award from AV-Test in 2024 and a perfect score in protection, performance, and usability [7][8] - The company achieved an A+ grade from Virus Bulletin with a 99.69% malware detection rate and was rated Approved in the AVLab Internet Banking Protection Test [9] Market Trends - The digital landscape is evolving, with macOS and mobile platforms experiencing increased threat activity, necessitating cross-platform protection and adaptive safeguards [2][10] - Antivirus software is expanding its role to manage security, privacy, and performance across various devices, especially in personal and financial domains [10]

Core Insights - Norton has launched AI-powered deepfake protection through its Norton Genie AI Assistant, currently in early access phase, to help users defend against malicious AI-generated audio and video content [1][4] - The deepfake protection feature analyzes audio and visual content for signs of manipulation, providing contextual protection by identifying inconsistencies in physical features in videos [2][3] - The service currently supports English-language YouTube videos, with plans for future expansion in platform and language support [3] Company Overview - Norton is a leader in Cyber Safety and part of Gen (NASDAQ: GEN), dedicated to empowering digital freedom with trusted consumer brands [5] - The company aims to provide award-winning protection for devices, online privacy, and identity, certified by independent testing organizations [5] Product Features - The early access version of Norton Deepfake Protection is available on Norton 360 mobile products in the US, UK, Australia, and New Zealand, with desktop support coming soon [4] - The Genie AI Assistant offers real-time guidance on the authenticity of video content by allowing users to upload YouTube links [3][4] - Future updates will extend deepfake protection to AI PCs powered by Intel chipsets and enhance detection capabilities on both desktop and mobile platforms [4]

Core Insights - Avast Premium Security and Avast Ultimate have been recognized as the top malware protection products for Mac users by Software Experts in 2025, highlighting the increasing cybersecurity threats targeting Apple devices [1][8] Product Performance - Software Experts' analysis evaluated Avast's performance in four key areas: malware protection, usability, real-world effectiveness, and feature set, with Avast excelling in all categories [3][13] - Avast Premium Security offers essential protections against various threats, including viruses, spyware, ransomware, and phishing, with features like real-time malware detection and email scam filtering [4][9] New Features - Avast has introduced Scam Guardian Pro, an AI-powered feature in Avast Premium Security, which includes tools for real-time web content scanning, suspicious message guidance, and risky email flagging [5][8] Multi-Device Solutions - Avast Ultimate provides a comprehensive multi-device solution, including a VPN, device performance optimizer, and anti-tracking tools, compatible across Mac, Windows, Android, and iOS [6][10] Industry Recognition - Avast received the Best macOS Security Award from AV-Test in 2024 and was recognized as a Top-Rated Product by AV-Comparatives in 2023, indicating strong performance and user-friendly interface [7][8] Cybersecurity Landscape - The evolving nature of online threats necessitates supplemental software for Mac users, as traditional native protections may not suffice against phishing, browser hijacking, and targeted ad tracking [12][11] - The rise of hybrid work models and increased personal device usage emphasizes the need for reliable cybersecurity tools across all platforms, including macOS [11][12]

Group 1 - Gen Digital Inc. (NASDAQ: GEN) has been generating consistent cash flow, which has been utilized to pay down its current debt, indicating that while the debt is high, it remains under control [1] - The target price for Gen Digital Inc. is set at $34.80, suggesting a positive outlook for the company's stock [1] - The analysis emphasizes a bottom-up approach focusing on operational fundamentals, execution history, and sustainable growth drivers, particularly in the Consumer Discretionary and Consumer Staples sectors [1] Group 2 - The investment philosophy combines income and value investing strategies, highlighting the importance of a margin of safety in both multiples and projected cash flow [1] - Dividend yield is considered a fundamental component for generating returns and mitigating risks, especially in low coverage stocks [1] - The analysis occasionally includes options suggestions when they align with the main thesis and provide an asymmetric advantage [1]

Core Insights - The Q2/2025 Gen Threat Report highlights a significant rise in cyber threats, particularly those utilizing AI, with a focus on fake pharmacies and ransomware [1][2][3] Cyber Threat Trends - There has been a 21% increase in data breaches, with nearly 16% more breached emails reported [7] - Financial scams surged by 340% from April to June 2025, with many linked to deceptive ads on Facebook [6][7] - Sextortion scams doubled, indicating a growing trend in personal-targeted cybercrime [1][7] - Tech support scams on Facebook accounted for 14% of all blocked threats, driven by fake help pages [7] PharmaFraud Operations - Gen researchers identified over 5,000 fraudulent online pharmacy websites, collectively referred to as "PharmaFraud," which have been responsible for 1 million blocked attacks [3][4] - These scams employ tactics such as malicious code injection, manipulated search results, and AI-generated content to appear legitimate [4] Ransomware Developments - Gen uncovered a critical flaw in FunkSec, the first known AI-assisted ransomware, allowing victims to recover files without payment through a free decryptor [5] Emerging Threats - There was a 317% increase in malicious push notifications, often disguised as legitimate alerts [7] - Remote access attacks rose by 62%, particularly involving the Wincir RAT and cloud service abuses [12] Company Initiatives - Gen offers various protective solutions, including Norton Genie and Scam Guardian, to help users avoid falling victim to these scams [8]

Core Insights - The 2025 Norton Cyber Safety Insights Report highlights significant challenges parents face regarding cyberbullying and children's use of AI for emotional support, with 24% of parents reporting their children have been victims of cyberbullying and 41% indicating their children turn to AI for companionship [1][6] Cyberbullying Statistics - Over half (54%) of cyberbullying victims reported that the perpetrator was a classmate or peer, indicating that bullying extends beyond school hours and into digital spaces [2][4] - The report identifies various platforms where cyberbullying occurs, with social media being prominent: Facebook (52%), YouTube (46%), Instagram (45%), Snapchat (40%), and TikTok (37%) [4] Children's Digital Behavior - A significant number of parents (86%) attempt to manage their child's screen time, yet 56% of children find ways to bypass these limits [5] - Parents report concerning online behaviors among children, including accessing blocked sites (25%) and engaging in cyberbullying (9%) [5] Role of AI in Children's Lives - The report notes that 41% of parents say their children use AI for companionship, with 46% specifically using ChatGPT [6] - While 40% of parents recognize the benefits of AI for learning, there are concerns about its unintended effects, with fathers more likely to see its benefits compared to mothers [7] Recommendations for Parents - The report provides actionable steps for parents to enhance their children's online safety, including starting conversations about online behavior early, using parental control tools, teaching children to recognize red flags, modeling healthy tech use, and staying involved in their online activities [9][10][11][12][12]