Gen Digital (GEN) Q2 Earnings call transcript Oct 30, 2025
In the recent earnings call for Gen Digital Inc., the company showcased a solid performance in the second quarter of fiscal year 2025, highlighting a mid-single-digit bookings growth of 5% and a double-digit earnings per share growth of 16%. This performance underscores the company's strategic focus on executing its growth strategy and its ability to meet the evolving needs of consumers in the digital world.
Innovative Solutions to Address Growing Cyber Threats
The call emphasized the increasing threat landscape and the company's commitment to empowering consumers with innovative solutions. The launch of Genie, an AI-powered anti-scam product, has been a significant achievement, with over 1.6 million downloads and an overall efficacy approaching 100%. This product, along with the expansion of AI capabilities into core offerings, underscores Gen Digital's leadership in leveraging technology to combat cyber threats.
Financial Highlights and Strategic Investments
The financial performance was robust, with total revenue up 3% in USD and constant currency. The company reported a non-GAAP revenue in the range of $980 million to $990 million for Q3, representing approximately 4% growth in cyber safety. The outlook for fiscal year 2025 is strengthened, with a full-year revenue range of $3.905 billion to $3.93 billion, translating to 3% to 4% growth in cyber safety. This growth is underpinned by the company's strategic investments in marketing, R&D, and product innovation.
Looking Ahead: Expansion and Growth Opportunities
Gen Digital's focus on expanding its reach and offerings, particularly in the identity theft protection segment, is a testament to its vision of digital freedom for all. The company's strategic partnerships and diversified revenue streams, including its telco partnerships and employee benefits channel, are key drivers of growth. The commitment to return 100% of excess free cash flow to shareholders while maintaining a dividend also signals a strong financial position.
Conclusion
Gen Digital Inc.'s Q2 earnings call highlighted a company in a strong financial position, with a clear focus on innovation, growth, and meeting the evolving needs of consumers in the digital age. The company's strategic investments, product offerings, and partnerships position it well for future growth and success. With a robust product roadmap, a commitment to customer satisfaction, and a focus on leveraging technology to combat cyber threats, Gen Digital Inc. is well-positioned to continue its mission of providing digital freedom and peace of mind for consumers worldwide.