Core Insights - Gen Digital Inc. (GEN) reported strong first-quarter fiscal 2026 results, with both revenues and earnings exceeding the Zacks Consensus Estimate [1][9] - Non-GAAP earnings were 64 cents per share, surpassing the estimate by 6.7% and showing a year-over-year increase of 20.8% [1][9] - Non-GAAP revenues rose 30.3% year over year, driven by heightened demand for AI-driven cyber safety solutions [2][9] Financial Performance - Gen Digital's Cyber Safety revenues reached $869 million, up 11.4% year over year, while Trust-Based Solutions segment revenues surged 109.7% to $388 million [5] - Direct Customer revenues increased 25.4% to $1.07 billion, and Partner revenues improved 67.3% to $189 million [5] - Quarterly bookings advanced 31.7% year over year to $1.202 billion, with an average direct customer count rising to 40.6 million [6] Operating Metrics - Non-GAAP gross profit grew 26.9% year over year to $1.06 billion, although gross margin contracted by 220 basis points to 84.1% [7] - Non-GAAP operating income totaled $650 million, reflecting a 15% year-over-year increase, with an operating margin of 52% [8] Cash Flow and Balance Sheet - The company ended the quarter with cash and cash equivalents of $828 million, down from $1.006 billion in the previous quarter [10] - Long-term debt increased to $8.963 billion from $8.335 billion year over year [10] - Operating and free cash flows generated in the quarter were $409 million and $405 million, respectively [10] Guidance and Outlook - For Q2 fiscal 2026, Gen Digital anticipates revenues between $1.18 billion and $1.21 billion, with non-GAAP earnings projected between 60 cents and 62 cents [12] - For the full fiscal 2026, the revenue outlook has been raised to a range of $4.8 billion to $4.9 billion, with EPS guidance adjusted to between $2.49 and $2.56 [13]

Key Takeaways GEN projects Q1 revenues of $1.18-$1.21B, implying 22.4% Y/Y growth on cybersecurity demand.Norton 360 and Genie Scam Protection are likely to fuel upgrades and expand customer count.High interest rates and weak global IT spending may weigh on broader enterprise demand.Gen Digital Inc. (GEN) is scheduled to report first-quarter fiscal 2026 results on Aug. 7, after market close.GEN expects non-GAAP revenues in the band of $1.18-$1.21 billion for the quarter. The Zacks Consensus Estimate for rev ...

Financial Data and Key Metrics Changes - Fiscal year 2025 total bookings reached a record $4 billion, up 4% year over year, with revenue exceeding the high end of annual guidance [8][25] - Non-GAAP operating margin was a record 58.4%, reflecting strong cost controls and operational efficiencies [9][26] - Non-GAAP EPS was $2.22, marking a 15% increase year over year and at the high end of annual guidance [9][26] - Unlevered free cash flow was nearly $2 billion, with net leverage reduced to 3.2 times EBITDA [9][34] Business Line Data and Key Metrics Changes - Direct revenue in Q4 was $877 million, up 4% in constant currency, with a total Q4 revenue exceeding $1 billion for the first time at $1.01 billion, also up 5% [27][26] - Partner revenue in Q4 was $121 million, up 15% year over year, driven by strong growth in the employee benefits channel [31][32] - The identity theft protection segment saw double-digit growth internationally, with increased demand for LifeLock following major data breaches [12][14] Market Data and Key Metrics Changes - The direct customer count increased by 1.3 million to over 40.4 million direct paid customers, with a total of over 65 million direct and indirect paid customers [15][28] - Approximately 45% of direct customers now have comprehensive cyber safety memberships, reflecting the increasing value of the product portfolio [15][30] - The company expanded its privacy and identity products into 15 new markets, achieving encouraging early results [14] Company Strategy and Development Direction - The company is committed to increasing innovation pace and expanding geographic reach to deliver cyber safety solutions [10][22] - The acquisition of MoneyLion is expected to enhance financial wellness offerings and expand the total addressable market [16][37] - The business will operate under two segments: Cyber Safety Platform and Trust Based Solutions, focusing on customer needs and operational efficiency [18][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties, citing a strong subscription model and high customer retention [68][70] - For fiscal year 2026, the company expects revenue between $4.7 billion and $4.8 billion, representing 6% to 8% pro forma growth [22][39] - Non-GAAP EPS for fiscal year 2026 is projected to be between $2.46 and $2.54, indicating double-digit growth [39] Other Important Information - The company plans to continue a balanced capital allocation strategy, focusing on share repurchases and debt paydown [48][36] - Q4 operating income was $590 million, translating to an operating margin of 58.4% [33] - The company has a robust cash flow generation capacity, with a Q4 ending cash balance of over $1 billion [34] Q&A Session Summary Question: Guidance for fiscal year 2026 and MoneyLion growth visibility - Management confirmed that guidance assumes MoneyLion growth can remain in the 29% to 30% range, with a focus on cross-selling and transforming the business model [44][45] Question: Capital allocation strategy regarding share repurchases - Management indicated a balanced approach to capital allocation, looking forward to resuming share repurchases while managing debt [48][49] Question: Impact of MoneyLion's customer network on potential subscribers - Management highlighted the opportunity to cross-sell to MoneyLion's customer base and enhance offerings through their technology [54][58] Question: Signs of demand resilience amid macro uncertainty - Management noted strong subscription levels and a resilient business model, with confidence in continued demand for cyber safety products [68][70] Question: Indirect revenue growth outlook and new partnerships - Management expects sustainable, profitable growth in the indirect channel, particularly from employee benefits and telco partnerships [82][86]

Gen Digital (GEN) Q4 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Jason Starr - VP - IRVincent Pilette - CEO, President & DirectorNatalie Derse - Chief Financial OfficerSaket Kalia - Managing DirectorRoger Boyd - Executive Director Conference Call Participants Andrew Nowinski - AnalystTomer Zilberman - AnalystDan Bergstrom - Analyst Operator Good afternoon, everyone. Thank you for standing by. My name is Tamiya, and I will be your conference operator today. Today's call is being recorded ...

Q4 FY25 Earnings May 6, 2025 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 histo ...