Gen Digital Inc. Reports Record Earnings and Strategic Growth

Gen Digital Inc. ((GEN)) has held its Q4 earnings call. Read on for the main highlights of the call.

Gen Digital Inc. recently held an earnings call that painted a picture of strong financial performance and strategic success, marked by record revenue and operational efficiency. The sentiment was largely positive, highlighting the successful acquisition of MoneyLion and the company’s robust growth metrics. However, there were notes of caution regarding potential volatility from the MoneyLion acquisition and broader macroeconomic uncertainties.

Record Revenue and Growth

Gen Digital Inc. reported a record-breaking fiscal year 2025, with total bookings reaching $4 billion, marking a 4% increase year-over-year. The company’s revenue exceeded the high end of its annual guidance, and its non-GAAP EPS hit a record $2.22, reflecting a 15% increase from the previous year. These figures underscore the company’s strong market position and growth trajectory.

Strong Operational Efficiency

The company achieved a record non-GAAP operating margin of 58.4%, attributed to effective cost control and operational efficiencies. This operational prowess highlights Gen Digital’s ability to maximize profitability while maintaining robust growth.

Expansion and Innovation

Gen Digital launched the Genie Scam Protection, which boasts a tenfold improvement in scam detection efficacy. Additionally, the company completed significant enhancements to the Northern 360 platform, underscoring its commitment to innovation and customer protection.

Successful Acquisition of MoneyLion

The strategic acquisition of MoneyLion marks Gen Digital’s expansion into the financial wellness market. This move aims to leverage MoneyLion’s advanced technology to provide enhanced consumer financial insights and solutions, broadening Gen Digital’s market reach and service offerings.

Increase in Customer Base

Gen Digital’s customer base grew significantly, adding 1.3 million direct customers to surpass 40 million direct paid customers. Notably, nearly 45% of these customers have comprehensive cyber safety memberships, indicating strong customer engagement and retention.

Potential Volatility with MoneyLion

While the acquisition of MoneyLion presents growth opportunities, it also introduces potential volatility. The company remains focused on cross-selling opportunities within its existing customer base to mitigate these risks.

Macroeconomic Uncertainty

Despite a resilient business model, Gen Digital acknowledges potential impacts from macroeconomic uncertainties. The company remains vigilant in navigating these challenges while maintaining its growth momentum.

Forward-Looking Guidance

Looking ahead, Gen Digital provided guidance for fiscal year 2026, projecting revenue between $4.7 billion and $4.8 billion, with a 6% to 8% pro forma growth. The company anticipates non-GAAP EPS to range from $2.46 to $2.54, marking a 12% to 15% growth. For the first quarter, revenue is expected between $1.18 billion and $1.21 billion, with EPS ranging from $0.59 to $0.61. The guidance incorporates the MoneyLion acquisition, expected to enhance growth in financial wellness offerings.

In summary, Gen Digital Inc.’s earnings call reflected a positive outlook with record financial metrics and strategic advancements. While the company faces potential challenges from the MoneyLion acquisition and macroeconomic factors, its strong operational efficiency and growth prospects position it well for future success.