Gen Digital 2026 Q2 Earnings 25.3% Revenue Jump Despite EPS Decline

Gen Digital (GEN) reported fiscal 2026 Q2 results on Nov 8, 2025, with revenue rising 25.3% to $1.22 billion, surpassing expectations. The company maintained FY 2026 revenue guidance of $4.92–$4.97 billion but saw EPS fall 15.4% to $0.22, reflecting margin pressures.

Revenue

Total revenue surged to $1.22 billion, driven by strong performance in Gen Digital’s core segments. The Cyber Safety Platform, which includes Norton, Avast, and LifeLock, generated $814 million, while Trust-Based Solutions contributed $406 million. The Corporate segment reported $0 in revenue, and consolidated net revenues reached $1.22 billion. This growth underscores the company’s dominance in consumer cybersecurity and identity protection.

Earnings/Net Income

Gen Digital’s EPS declined to $0.22, a 15.4% drop from $0.26 in 2025 Q2, while net income fell to $134 million, down 16.8% year-over-year. The earnings shortfall highlights challenges in maintaining profitability amid rising operational costs.

Post-Earnings Price Action Review

A strategy of buying GEN shares after revenue beats and holding for 30 days has shown compelling backtest results. The approach yields an average 24.6% gain, with low drawdowns of 11.7% and a 71.4% win rate. Historical data validates the strategy’s robustness, demonstrating its relevance in today’s market. This suggests strong short-term momentum potential for investors.

CEO Commentary

Vincent Pilette, CEO, Gen Digital Inc.

emphasized the company’s resilience in a complex threat landscape, noting a 25% revenue increase driven by cybersecurity demand and fintech growth. He highlighted strategic investments in AI and secure financial wellness, stating, “Our focus on high-margin subscriptions and innovation positions us for sustained growth.” The tone was cautiously optimistic, acknowledging macroeconomic risks but underscoring confidence in long-term opportunities.

Guidance

Gen Digital raised FY 2026 revenue guidance to $4.92–$4.97 billion and expects Q3 2026 revenue of $1.22–$1.24 billion. The company guided to FY 2026 non-GAAP EPS of $2.51–$2.56 and Q3 2026 non-GAAP EPS of $0.62–$0.64. These targets reflect confidence in scaling secure financial wellness offerings and operational efficiency.

Additional News

Gen Digital announced three key updates:

1. C-Level Changes: Bryan Ko, Chief Legal Officer, was appointed COO, leveraging his legal and operational expertise to enhance efficiency.

2. Executive Severance Plan: A new plan was adopted, offering enhanced benefits for named executive officers, including severance multiples and accelerated equity vesting.

3. Dividend Announcement: The board declared a quarterly dividend of $0.13 per share, reflecting confidence in cash flow generation. These moves aim to stabilize leadership and reward shareholders amid strategic expansion.

Price Action

Following the earnings report, GEN shares rose 4.04% in a single trading day but declined 2.24% over the subsequent week. The stock has fallen 5.40% month-to-date, reflecting mixed investor sentiment between positive revenue growth and earnings concerns.