$GEN · Gen Digital Inc.
Gen Digital filed its 10-Q for Q2 FY2027 (ended October 2, 2026), reporting net revenues of $1.369B (+12.2% YoY), net income of $287M (more than double the $134M in the prior-year quarter), and diluted EPS of $0.48. The six-month period shows revenue of $2.705B and net income of $502M. The prior-year quarter included an extra week that contributed $87M in revenue, making the organic growth even stronger on a comparable basis.
- Q2 net income surged to $287M vs $134M a year ago, with diluted EPS of $0.48 vs $0.21.
- Revenue rose 12.2% YoY to $1.369B, driven by Trust-Based Solutions (+$105M) and Cyber Safety (+$44M).
- Gross margin expanded to 75.9% from 78.2% a year ago; operating margin reached 37.0%.
- Interest expense dropped 15.8% YoY to $123M as debt paydown continued; total debt stands at $8.1B.
- Share count fell to 593M from 616M a year ago via $271M in buybacks over six months.
Stock rose 15.81% in regular trading to $28.20; extended-hours last trade at $28.28 (+0.29% vs close), suggesting the earnings beat was largely priced in during the session.
Net income doubling year-over-year with both segments growing and aggressive buybacks shrinking the share count makes this a standout quarter for a $16.9B consumer cyber/fintech hybrid.
Gen Digital's Trust-Based Solutions segment (MoneyLion) is scaling rapidly — revenue up 25.9% YoY to $511M in Q2 — positioning it as a consumer fintech competitor alongside standalone neobanks while the core Cyber Safety business provides steady cash flow.
The 10-Q flags macroeconomic headwinds including inflation and FX volatility. The MoneyLion integration adds credit risk via Instacash Advances; $129M loss on sale of those advances was recorded in operating cash flow adjustments for the six-month period.