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Jul 04
Gen Digital Q1 2026 Earnings Report
Gen Digital reported strong growth in Q1 FY26, exceeding expectations and raising full-year guidance.
Key Takeaways
Gen Digital delivered a robust Q1 FY26 with double-digit revenue growth and strong non-GAAP earnings, driven by strong performance in Cyber Safety and Trust-Based Solutions.
Revenue grew 30% year-over-year to $1.257 billion.
Non-GAAP EPS increased 20% year-over-year to $0.64.
Total paid customers surpassed 76 million.
The company raised full-year revenue and EPS guidance.
Gen Digital
Gen Digital
Gen Digital Revenue by Segment
Revenue by Segment
Direct Revenue
CapyFin.comPartner Revenue
CapyFin.comCyber Safety Platform Revenue
CapyFin.comTrust-Based Solutions Revenue
CapyFin.com Forward Guidance
Gen raised its full-year guidance based on strong Q1 performance, with optimism around its diversified product portfolio and operational execution.
Positive Outlook
- FY26 revenue guidance raised to $4.8–4.9 billion.
- FY26 EPS guidance increased to $2.49–2.56.
- Q2 FY26 revenue projected at $1.18–1.21 billion.
- Q2 FY26 EPS expected at $0.60–0.62.
- Strong execution and product innovation cited as drivers of growth.
Challenges Ahead
- GAAP EPS declined 25% year-over-year.
- Operating margin (GAAP) decreased by 7 points.
- Significant increase in operating expenses, especially in sales and marketing.
- Free cash flow impacted by $876 million in acquisition-related outflows.
- Partner revenue still significantly smaller compared to direct revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income