Core Insights - Gen Digital Inc. reported strong third-quarter fiscal 2026 results, with revenues and earnings exceeding the Zacks Consensus Estimate, showcasing a positive growth trajectory [1][10] Financial Performance - Non-GAAP earnings for the third quarter were 64 cents per share, surpassing estimates by 1.6% and reflecting a 14% year-over-year increase [1][10] - Non-GAAP revenues reached $1.24 billion, a 25.8% increase year over year, also beating estimates by 1.07% [2][10] - Cyber Safety revenues were $819 million, up 2.5% year over year, while Trust-Based Solutions revenues surged 125% to $421 million [3][10] - Direct Customer revenues rose 18% year over year to $1.03 billion, and Partner revenues improved 87% to $215 million [3][10] - Quarterly bookings advanced 27.4% year over year to $1.32 billion [4][10] Profitability Metrics - Non-GAAP gross profit grew 21.8% year over year to $1.04 billion, although gross margin contracted by 270 basis points to 83.5% [4] - Non-GAAP operating expenses increased to $406 million, a 49% rise year over year, representing 32.7% of revenues, up 500 basis points [5] - Non-GAAP operating income totaled $629 million, up 9% year over year, with an operating margin of 50.7%, down 780 basis points [5] Balance Sheet and Cash Flow - As of January 2, 2026, cash and cash equivalents stood at $619 million, down from $701 million in the previous quarter, with long-term debt at $8.49 billion [6] - Operating cash flow generated was $541 million, with free cash flow at $535 million; the company paid $77 million in dividends, repaid $300 million of debt, and repurchased $300 million of shares [6] Guidance and Projections - For the fourth quarter of fiscal 2026, Gen Digital anticipates revenues between $1.24 billion and $1.26 billion, indicating year-over-year growth of 22.7% [7] - Projected non-GAAP earnings for the fourth quarter are between 64 cents and 66 cents, with a year-over-year growth of 11.9% [8] - For fiscal 2026, the revenue guidance has been raised to a range of $4.96 billion to $4.98 billion, up from the previous range of $4.92 billion to $4.97 billion, indicating a year-over-year growth of 25.6% [9][10] - Earnings per share for fiscal 2026 are now projected between $2.54 and $2.56, compared to earlier guidance of $2.51 to $2.56, reflecting a year-over-year growth of 14.4% [11]