10-K · May 21, 2026
Gen Digital Inc. reported solid growth with fiscal 2026 revenues reaching $5 billion, a 27% increase from the previous year, aided by the acquisition of MoneyLion, which contributed $823 million to revenue. The company…
Earnings analysis · 10-Q
GEN earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Gen delivered 6% year-over-year revenue growth to $1,336 million, with strong Trust-Based Solutions growth, higher net income of $215 million and $430 million of calculated free cash flow. However, gross margin fell to…
Read full summary
Gen delivered 6% year-over-year revenue growth to $1,336 million, with strong Trust-Based Solutions growth, higher net income of $215 million and $430 million of calculated free cash flow. However, gross margin fell to 77.0%, operating income was broadly flat at $443 million, and restructuring and partner revenue-share costs created profitability pressure. Liquidity improved and debt declined modestly, but leverage, variable-rate exposure, Instacash funding dependence and evolving AI and financial-services regulation remain significant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.36
What stood out
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Revenue growth led by Trust-Based Solutions
Revenue was $1,336 million, up $79 million, or 6%, from $1,257 million year over year and approximately 4.4% from the prior quarter’s $1.28 billion. Growth was led by Trust-Based Solutions, which increased $102 million to $490 million.
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Net income and EPS improved
Net income increased to $215 million from $135 million, while diluted EPS rose to $0.36 from $0.22 year over year. The improvement was supported by interest expense declining to $124 million from $156 million and the effective tax rate falling to 33% from 55%.
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Trust-Based Solutions accelerated
Trust-Based Solutions revenue grew 26% to $490 million from $388 million, and segment operating income increased to $149 million from $120 million. Management attributed growth primarily to continued momentum in Financial Wellness offerings.
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Strong operating cash generation
Operating cash flow increased to $434 million from $409 million year over year. After $4 million of property and equipment purchases, calculated free cash flow was $430 million, representing approximately 32% of revenue.
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Liquidity improved modestly
Cash, cash equivalents and restricted cash increased to $564 million from $411 million at fiscal year-end, while total debt declined to $8,156 million from $8,196 million. The company also had $1,495 million of undrawn revolving-facility capacity, net of letters of credit.
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Customer and bookings momentum
Paid customers increased to 81 million from 76 million, total bookings rose to $1,284 million from $1,202 million, and remaining performance obligations were $1,325 million, with approximately 94% expected to be recognized over the next 12 months.
What to watch
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Partner revenue share pressured margins
Gross margin declined to 77.0% from 78.8% year over year, as cost of revenues rose 15% to $307 million from $267 million. Management identified a $35 million increase in partner revenue share, primarily in Trust-Based Solutions, as the main driver.
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Restructuring weighs on profitability
The company began a Fiscal 2027 restructuring plan with estimated total costs of approximately $50 million; $32 million was incurred in the quarter and $15 million remained as a restructuring liability. Operating expenses increased 8% to $586 million, while operating income declined to $443 million from $446 million.
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Instacash funding and loss exposure
The amended Instacash funding facility increased its aggregate limit from $225 million to $300 million and extends to July 30, 2028, but only $37 million of capacity remained unused at July 3, 2026. The company sold $1,193 million of Instacash Advances during the quarter and recognized a $60 million loss on mark-to-market and sale activity.
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High leverage and rate sensitivity
The company had $8,230 million of outstanding principal debt, including $5,780 million of variable-rate debt. A hypothetical 100-basis-point SOFR increase would raise annualized interest expense by $58 million, while springing maturity provisions create refinancing and liquidity risk ahead of stated maturities.
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Increasing AI execution and regulatory risk
The filing expands its AI risk discussion to include generative and agentic AI, including potential regulatory, privacy, intellectual-property and cybersecurity exposure. Research and development expense increased 8% to $118 million, reflecting ongoing investment in product development, including AI.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management states that existing cash, operating cash flow, revolving-facility availability and expected refinancing plans should be sufficient for working capital and other obligations for at least the next 12 months. The filing also states that the results of the 13-week quarter are not necessarily indicative of the full fiscal year.
Earlier filings 4
10-Q · November 7, 2025
Gen Digital reported quarterly revenue of $1,220 million (three months ended October 3, 2025), up $246 million or 25.3% year-over-year versus $974 million a year earlier, driven by recent acquisitions and Trust‑Based…
10-K · May 16, 2024
Gen Digital’s 10-K frames strategy around building an integrated consumer Cyber Safety platform (security, identity, privacy) and scaling via omni-channel distribution, freemium, cross-sell/up-sell and retention. The…
10-K · May 25, 2023
Gen Digital’s 10-K highlights the strategic shift from the NortonLifeLock/Avast merger (completed Sept. 12, 2022) to build a unified consumer Cyber Safety platform spanning security, identity and privacy. The company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.