Gen Digital (NasdaqGS:GEN) Q3 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsJason Starr - Head of Investor RelationsMeta Marshall - Managing DirectorNatalie Derse - CFORobert Coolbrith - VP of Internet Equity ResearchRoger Boyd - Executive DirectorSaket Kalia - Managing DirectorVincent Pilette - CEOConference Call ParticipantsJoseph Gallo - SVP and Software Research AnalystMatt Hedberg - Managing Director and Software Research AnalystOperatorGood afternoon, everyone. Thank you for sta ...

Q3 FY26 Earnings February 5, 2026 Forward-Looking Statements This presentation contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of ...

India scraps order to pre-install state-run cyber safety app on smartphones https://t.co/wgy4bYacR0 ...

Core Insights - Norton has launched Norton Neo, an AI-native browser aimed at enhancing online safety and user experience, now available globally for free [1][6] - The browser is designed to address the complexities and safety concerns associated with modern web browsing, leveraging AI to provide a more secure and user-friendly experience [2][3] Product Features - Norton Neo combines AI capabilities with robust safety features, including a Configurable Memory that allows users to control what the browser remembers [4][8] - The browser includes Norton Web Shield to block malicious sites and phishing attempts, ensuring user protection while utilizing AI [4][8] - Key features of Norton Neo include privacy-first security, AI assistance for timely suggestions, and smart tab management to reduce tab overload [8] Development and Availability - Norton Neo was initially tested internally and has now transitioned to an early access version available in English on MacOS and Windows, with plans for additional platforms [6] - The company encourages user feedback to refine and enhance the browsing experience [6]

India tells smartphone makers to put state-run cyber safety app on new devices https://t.co/s9gNuyRMR7 ...

Financial Performance Highlights - Q2 FY26 revenue reached $1220 million, a 25% year-over-year increase[40, 42] - Q2 FY26 bookings totaled $1222 million, up 27% year-over-year[40] - Q2 FY26 operating income was $623 million, a 10% year-over-year increase[40] - Q2 FY26 EPS reached $062, a 15% year-over-year increase[40, 43] Segment Performance - Cyber Safety Platform revenue was $814 million, a 3% year-over-year increase, with an operating margin of 61%[46] - Trust-Based Solutions revenue was $406 million, a 119% year-over-year increase, with an operating margin of 30%[48] Revenue Streams - Direct revenue reached $1010 million, a 17% year-over-year increase[50] - Partner revenue reached $210 million, an 88% year-over-year increase[50] Customer Base - The company has 77 million+ paid customers[6, 52] Financial Outlook - FY26 revenue guidance is raised to $492 - $497 billion, reflecting a 25%-26% year-over-year growth[57] - FY26 EPS guidance is raised to $251 - $256, reflecting a 13%-15% year-over-year growth[57]

Core Insights - Gen Digital Inc. reported record results for Q2 FY2026, highlighting the strength of its subscription model and expansion into secure financial wellness [2][5] - The company is developing an AI-powered platform that integrates security, privacy, identity, and financial wellness, creating a unique market advantage [2] - Consistent execution is demonstrated by eight consecutive quarters of EPS growth at or above the target of 12-15% [2] Financial Highlights - Q2 FY2026 revenue reached $1,220 million, a 25% increase year-over-year [7] - Operating income for Q2 was $438 million, up 9% from the previous year [7] - Diluted EPS for Q2 was $0.21, down 17% compared to the same quarter last year [7] - Year-to-date operating cash flow increased by 24% to $525 million [7] - Bookings for Q2 were $1,222 million, reflecting a 27% growth [7] Guidance and Dividends - The company raised its non-GAAP revenue guidance for FY2026 to a range of $4.92 billion to $4.97 billion, up from the previous guidance of $4.8 billion to $4.9 billion [7] - Q3 FY2026 revenue is expected to be between $1.22 billion and $1.24 billion, with EPS guidance in the range of $0.62 to $0.64 [7] - A quarterly cash dividend of $0.125 per share has been approved, to be paid on December 10, 2025 [3] Operational Metrics - The Cyber Safety Platform generated $814 million in revenue, while Trust-Based Solutions contributed $406 million [14] - Total paid customers increased to 77 million from 67 million year-over-year [15]

Core Insights - Gen Digital (GEN) has introduced a new feature in Norton 360 to protect users from deepfake scams, collaborating with Intel to enable real-time protection on Intel Core Ultra processors [1][4] - The feature enhances existing scam protection by checking both video and audio for signs of fake content and is currently available in the US, UK, Australia, and New Zealand [2][3] Product Development - Continuous updates to Norton 360 reflect the company's commitment to addressing emerging AI scams, potentially attracting new customers and retaining existing ones [3][4] - The new feature is designed to provide users with greater confidence while browsing or consuming content online, as AI scams become increasingly sophisticated [4] Partnerships and Market Expansion - Gen Digital is expanding its deepfake protection beyond Intel to include Qualcomm and AMD, ensuring Norton protection is available across major AI PC platforms [5][7] - The scam detection features are already operational on Windows AI PCs powered by Qualcomm Snapdragon X chips, allowing real-time alerts without cloud dependency [6] - Support for AMD is expected later this year, further broadening the coverage for AI PC users [7][8] Strategic Positioning - This multi-partner approach positions Norton as a standard security solution for users seeking reliable on-device protection against scams and deepfakes, regardless of the processor brand [8] - The partnerships with Qualcomm and AMD enhance market reach and flexibility for customers, contributing to long-term growth opportunities in cyber safety and financial wellness [8]

Core Insights - Norton Small Business has expanded its offerings to include Dark Web Monitoring and Social Media Monitoring features to help protect small businesses from data breaches and account takeovers as incidents surge [1][2][3] Industry Trends - Data breaches impacting businesses have surged by 20% in the last quarter, with overall breach attacks on small businesses increasing by over 50% in 2025 [2] - Attackers are increasingly purchasing stolen information on the Dark Web and impersonating vendors, leading to significant financial and reputational damage for small businesses lacking adequate protection [2] Company Developments - Norton has introduced Enhanced Dark Web Monitoring that continuously scans for compromised business data, including specific fields like Company Name and Tax ID number, and alerts business owners upon detection [3] - The new Social Media Monitoring feature provides early warnings of account takeover attempts and scams on platforms like Facebook and Instagram, addressing the rise in financial scams reported in the Q2 Gen threat report [4] - Dark Web Monitoring is available in Norton Small Business Standard and Premium plans across multiple regions, while Social Media Monitoring is offered in the Premium plan in the US and UK [5]

Financial Data and Key Metrics Changes - In Q1, bookings and revenue grew over 30% year over year on a reported basis and 10% on a pro forma basis [6] - Non GAAP operating margins remained robust at 52% and non GAAP EPS exceeded guidance at $0.64, up 20% year over year [6][36] - Q1 bookings were $1.2 billion, up 32% year over year, and revenue was $1.26 billion, up 30% year over year [25] Business Line Data and Key Metrics Changes - The Cyber Safety Platform represented two-thirds of Q1 revenue, growing 11% on a reported basis and 4% when normalizing for the extra week [9] - Trust Based Solutions represented one-third of revenue, growing over 100% on a reported basis and 25% when normalized for the extra week and MoneyLion baseline [13] - MoneyLion's revenue grew 45% pro forma, driven by personal financial management offerings and the AI-powered financial marketplace [15] Market Data and Key Metrics Changes - The direct revenue channels grew 25% as reported and 6% pro forma, with strong fundamentals across channels and geographies [27] - Partner channels grew 68% as reported and 38% pro forma, driven by strength in employee benefits and international partnerships [28] - The total paid customer count reached over 76 million, with 40.6 million direct paid customers and 28 million engaged through partner channels [30][32] Company Strategy and Development Direction - The company is focused on product innovation and integration of MoneyLion, with plans to launch the first integrated product under Gen's brand by fall [7][18] - The strategy includes leveraging AI for operational efficiency and customer engagement, aiming to become an AI-first company [20][21] - The company raised its annual revenue guidance by $100 million to a range of $4.8 billion to $4.9 billion, reflecting confidence in growth [21][41] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business amid macroeconomic uncertainty, supported by a recurring revenue base and strong customer retention [41] - The evolving cyber threat landscape necessitates continuous innovation and proactive measures to protect consumers [10][11] - The integration of MoneyLion is expected to enhance customer engagement and retention, driving long-term value creation [18][82] Other Important Information - The company plans to host an investor briefing on September 8 to discuss strategic direction and MoneyLion's product portfolio [17] - Q1 operating income was $650 million, translating to a 52% operating margin, with high margins expected to continue [35] - The company repurchased nearly 5 million shares during Q1 and paid down $180 million in debt [38] Q&A Session Summary Question: Can you discuss the fundamental trends in MoneyLion's business? - Management noted that MoneyLion's growth accelerated to 45% in Q1, with strong performance in both personal financial management and the marketplace [46][48] Question: How does the company view pricing as a lever for monetization? - The strategy focuses on delivering innovative products that enhance customer protection, which in turn justifies price increases and higher ARPU [50][56] Question: What operational improvements have been implemented in MoneyLion? - Management highlighted the focus on growth and operational integration, with expectations for continued innovation and margin improvement [62][63] Question: What drove the strength in the Cyber Safety business in Q1? - The company attributed the strength to cross-selling, upselling, and strong retention rates, maintaining a mid single-digit growth rate [72][73] Question: How will the growth rates of the new reporting segments be structured going forward? - Cyber Safety is expected to maintain mid single-digit growth, while Trust Based Solutions is projected to see double-digit growth as it integrates with MoneyLion [76]