Gen Digital Inc. GEN reported fourth-quarter fiscal 2026 non-GAAP earnings of 67 cents per share, topping the Zacks Consensus Estimate by 3.6%. GEN’s fourth-quarter fiscal 2026 earnings grew 13.6% year over year.
Quarterly revenues of $1.28 billion also beat the consensus mark by 3.57% and rose 26.7% year over year.
The quarter reflected healthy demand for GEN’s Cyber Safety Platform and strong execution in Trust-Based Solutions. Paid customers ended the period at 79 million, up from 68 million a year ago.
GEN Stays on a Double-Digit Growth Track
Gen Digital’s fourth-quarter revenue increase was supported by sustained momentum across the portfolio, as management pointed to strong demand and accelerating growth. The company highlighted a fourth straight quarter of double-digit bookings growth, underscoring ongoing product traction and customer activity.
Gen Digital Inc. Price, Consensus and EPS Surprise
Gen Digital Inc. price-consensus-eps-surprise-chart | Gen Digital Inc. Quote
Bookings rose 27% year over year to $1.36 billion in the quarter. The company also emphasized that pro-forma results, which include MoneyLion in the prior-year baseline, showed a 9% revenue increase, pointing to a steadier underlying growth profile after normalizing for the acquisition baseline.
Trust-Based Solutions Drive Gen Digital
GEN’s mix segment continued to evolve, with Trust-Based Solutions providing the primary growth engine. In the fiscal fourth quarter, Trust-Based Solutions revenues jumped to $446 million from $202 million in the year-ago period, reflecting 121% year-over-year growth and a much larger contribution from the financial wellness and marketplace assets.
Gen Digital described the Trust-Based Solutions performance as supported by strong personal financial management results and expanded “Engine” verticals, while also noting continued investment to drive innovation and market share gains. This faster-growing segment has become a meaningful component of quarterly revenues alongside the more mature Cyber Safety Platform.
GEN Keeps Cyber Safety Profitable and Durable
Gen Digital’s Cyber Safety Platform remained a stable earnings anchor. Segment revenues increased to $837 million in the quarter from $808 million a year earlier, reflecting 4% year-over-year growth and continued demand for cybersecurity and privacy offerings even as growth rates are more modest than in Trust-Based Solutions.
Profitability in the core franchise stayed robust. The company reported a 61% operating margin in the Cyber Safety Platform in the fourth quarter, aided by scale and efficiencies. Management also called out Norton 360 memberships enhanced with scam protection and multi-layered security as a support for performance, reinforcing the platform’s role as the company’s durable cash generator.
GEN Navigates Margin Dynamics as Costs Shift
GEN’s non-GAAP operating income for the quarter was $641 million, up from $590 million a year ago, showing a 9% year over year growth. This translated to a 50% operating margin.
Gen Digital’s Balance Sheet and Cash Flow
As of April 3, 2026, GEN had cash, cash equivalents and restricted cash of $411 million, down from $619 million in the previous quarter. The long-term debt was $8.02 billion.
GEN’s cash generation remained a key feature of the quarter. Operating cash flow was $452 million, and free cash flow was $449 million, supporting continued balance sheet actions and shareholder returns.
Capital allocation stayed active. The company paid $76 million in dividends during the quarter, repaid $219 million of debt, and repurchased $200 million of shares. The board also approved a regular quarterly cash dividend of 13 cents per common share, payable June 10, 2026, to shareholders of record as of May 18, 2026.
GEN Lifts the Bar With Higher FY27 Outlook
GEN’s updated outlook leaned constructive, supported by what management described as strong execution and momentum. For first-quarter fiscal 2027, the company expects non-GAAP revenues between $1.30 billion and $1.325 billion. The Zacks Consensus Estimate for GEN’s first-quarter fiscal 2027 revenues is pegged at $1.28 billion, indicating year-over-year growth of 1.8%.
For first-quarter fiscal 2027, the company expects non-GAAP earnings to be in the range of 68-70 cents. The Zacks Consensus Estimate for GEN’s first-quarter fiscal 2027 earnings is pegged at 68 cents, indicating year-over-year growth of 6.3%.
For fiscal 2027, Gen Digital raised its guidance and now projects revenues between $5.325 billion and $5.425 billion. The Zacks Consensus Estimate for GEN’s fiscal 2027 revenues is pegged at $5.22 billion, indicating year-over-year growth of 5.4%.
For fiscal 2027, GEN now projects non-GAAP earnings in the band of $2.85-$2.95. The Zacks Consensus Estimate for Gen Digital’s fiscal 2027 revenues is pegged at $2.54, indicating year-over-year growth of 14.4%.
The company’s guidance framework assumes a non-GAAP effective tax rate of about 22% and reflects continued investment in platform and AI capabilities, while targeting stable segment margins of more than 60% in Cyber Safety and about 30% in Trust-Based Solutions.
Zacks Rank and Stocks to Consider
Currently, Gen Digital carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Samsara IOT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Broadcom have gained 21.7% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating an increase of 68% year over year.
Shares of Celestica have rallied 41.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $9.85 per share, up $1.01 over the past seven days, indicating an increase of 62.8% year over year.
Samsara shares have lost 14% year to date. The Zacks Consensus Estimate for IOT’s fiscal 2027 earnings is pegged at 68 cents per share, up 11 cents over the past 60 days, indicating an increase of 21.4% year over year.
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