Gen Digital (GEN) - 2026 Q2 - Quarterly Results

Financial Performance - Q2 FY26 revenue reached $1,220 million, representing a 25% increase year-over-year[5] - Operating income for Q2 FY26 was $438 million, up 9% compared to the previous year[5] - Year-to-date operating cash flow increased by 24% to $525 million[5] - Bookings for Q2 FY26 totaled $1,222 million, reflecting a 27% growth[5] - Net income for the three months ended October 3, 2025, was $134 million, a decrease of 16.8% compared to $161 million for the same period in 2024[20] - Total net revenues for the three months ended October 3, 2025, reached $1,220 million, representing a 25.3% increase from $974 million in the prior year[26] - Operating income for the three months ended October 3, 2025, was $438 million, up 8.9% from $402 million in the same period last year[23] - Total bookings for the three months ended October 3, 2025, were $1,222 million, compared to $964 million for the same period in 2024, indicating a 26.8% increase[26] - Free cash flow for the six months ended October 3, 2025, was $512 million, compared to $418 million for the same period in 2024, marking a 22.5% increase[22] - Operating margin for the three months ended October 3, 2025, was 35.9%, down from 41.3% in the same period last year[23] - Non-GAAP net income for the three months ended October 3, 2025, was $387 million, compared to $336 million for the same period in 2024, an increase of 15.2%[22] - The ending cash, cash equivalents, and restricted cash as of October 3, 2025, was $701 million, a decrease from $737 million at the end of the previous year[20] Guidance and Projections - The company raised its FY26 revenue guidance to a range of $4.92 billion to $4.97 billion, up from the previous guidance of $4.8 billion to $4.9 billion[10] - Q3 FY26 revenue is expected to be between $1.22 billion and $1.24 billion[10] - Q3 FY26 EPS is projected to be in the range of $0.62 to $0.64[10] Customer Metrics - The number of total paid customers increased to 77 million as of October 3, 2025, from 67 million a year earlier, reflecting a growth of 14.9%[26] - Paid customers are defined as active users with an active paid subscription or at least one revenue-generating transaction, excluding free trial users[47] Dividends and Shareholder Returns - The company announced a quarterly cash dividend of $0.125 per common share, payable on December 10, 2025[6] Strategic Initiatives - Gen Digital serves nearly 500 million users across more than 150 countries, focusing on financial empowerment and cyber safety[8] - The CEO emphasized the development of an AI-powered platform integrating security, privacy, identity, and financial wellness[3] Revenue Streams and Definitions - The company defines bookings as customer orders expected to generate future net revenues, reflecting customer demand for its products and services[41] - Free cash flow is defined as cash flows from operating activities less purchases of property and equipment, and is not a measure of financial condition under GAAP[42] - The company excludes gains or losses on extinguishment of debt from non-GAAP results as they do not reflect ongoing business performance[36] - The company records gains or losses on the sale of properties but excludes them from ongoing business results[38] - The non-GAAP tax rate excludes discrete impacts of tax legislation changes and other significant items to facilitate better evaluation of operating performance[39] Product Offerings - The company’s Cyber Safety Platform includes security and privacy products aimed at providing superior threat protection in the digital world[44] - Trust-Based Solutions encompass identity, reputation, and financial wellness products, contributing to direct revenue through e-commerce and financial transactions[45] - Partner revenue includes revenue from strategic partnerships and channels, reflecting the company's diverse revenue generation strategies[46]