Gen Digital Inc. Reports Strong Start to FY 2026

Gen Digital Inc. ((GEN)) has held its Q1 earnings call. Read on for the main highlights of the call.

Gen Digital Inc. has kicked off fiscal year 2026 on a high note, as reflected in its latest earnings call. The company reported significant growth in revenue and successful integration of MoneyLion, showcasing robust performance across its segments. Despite facing challenges from evolving AI-driven cyber threats, Gen Digital continues to make strides in AI-driven innovation, setting a positive tone for the year ahead.

Strong Start to Fiscal Year 2026

Gen Digital reported a remarkable start to fiscal year 2026, with Q1 bookings and revenue growing over 30% year-over-year on a reported basis and 10% on a pro forma basis. The company’s non-GAAP operating margins were robust at 52%, and non-GAAP EPS exceeded guidance at $0.64, marking a 20% increase year-over-year. This strong financial performance underscores the company’s solid foundation and strategic direction.

MoneyLion Integration and Performance

The integration of MoneyLion has been a significant contributor to Gen Digital’s growth, with a 45% pro forma revenue increase. The integration process is on track, and the company is set to launch its first integrated product under Gen’s brands by fall. This development highlights the strategic importance of MoneyLion in Gen Digital’s growth trajectory.

Cyber Safety Platform Growth

Gen Digital’s Cyber Safety Platform, which accounted for two-thirds of Q1 revenue, demonstrated impressive growth, increasing by 11% on a reported basis and 4% when adjusted for the extra week. The operating margin for this segment was a strong 61%, reflecting the platform’s critical role in the company’s portfolio.

Trust-Based Solutions Expansion

Trust-Based Solutions experienced over 100% growth on a reported basis and 25% when normalized. LifeLock, a key component of this segment, continues to deliver steady growth, boasting a 4.8 Trustpilot rating and a record Net Promoter Score of 71. This expansion underscores Gen Digital’s commitment to enhancing trust and security for its users.

AI and Innovation Initiatives

Gen Digital is at the forefront of AI-driven innovation, introducing new features such as AI-driven scam protection, Norton Deepfake Detection, and the AI-native browser Norton Neo. The company has also transitioned many product support interactions to an AI-enabled platform, autonomously handling over 40% of customer issues. These initiatives highlight Gen Digital’s focus on leveraging AI to enhance user experience and security.

Challenges with AI-Driven Cyber Threats

Despite its successes, Gen Digital acknowledges the ongoing challenges posed by AI-driven cyber threats. Attackers are increasingly using AI to create more adaptive threats, including AI-assisted ransomware and deepfake scams. This evolving threat landscape underscores the importance of Gen Digital’s continued investment in cyber safety and innovation.

Forward-Looking Guidance

Looking ahead, Gen Digital has raised its annual revenue guidance by $100 million, projecting a range of $4.8 billion to $4.9 billion for the fiscal year. The company’s strong first-quarter performance, with a 30% year-over-year revenue increase totaling $1.26 billion, sets a positive outlook. The Cyber Safety Platform and Trust-Based Solutions are expected to continue driving growth, with LifeLock maintaining its steady performance.

In summary, Gen Digital Inc.’s earnings call reflects a strong start to fiscal year 2026, characterized by significant revenue growth and successful strategic initiatives. The company’s focus on AI-driven innovation and integration of MoneyLion positions it well for continued success, despite the challenges posed by evolving cyber threats. Investors and stakeholders can remain optimistic about Gen Digital’s trajectory in the coming months.