Gen Digital Inc. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹14.8K Cr
- Full year fiscal 2027 revenue expected between $5.325 billion and $5.425 billion, representing 8% to 10% pro forma growth. - Fiscal year 2027 revenue expected in the range of $5.325 billion to $5.425 billion, representing 8% to 10% pro forma growth.
From Gen Digital Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹24.55
Market Cap
₹14.8K Cr
P/E Ratio
15.8
Revenue Rank
Margin Rank
How does Gen Digital Inc. rank in Software?
Compare Gen Digital Inc. against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →Full year fiscal 2027 revenue expected between $5.325 billion and $5.425 billion, representing 8% to 10% pro forma growth.
- →Bookings and revenue growth driven by strong momentum in existing segments and expansion of product portfolio.
- →Cyber Safety segment to sustain mid-single-digit growth rate with ongoing customer acquisition and cross-sell/upsell.
- →Trust-Based Solutions segment, including MoneyLion financial wellness business, expected to deliver double-digit growth.
- →MoneyLion growing faster than market, contributing significantly to overall growth.
- →Continued expansion of synergistic revenue streams from embedded financial wellness and AI-driven efficiencies.
- →Mid-teens EPS growth target (13%-17%, midpoint 15%) indicating profitability gains alongside revenue growth.
- →Cross-pollination between protection and empowerment services to drive revenue synergies and customer engagement.
- →Strong free cash flow generation expected to support disciplined investment, share repurchases, and debt reduction.
📈 Profitability & Margins
Rank 3- →Fiscal year 2027 revenue expected in the range of $5.325 billion to $5.425 billion, representing 8% to 10% pro forma growth.
- →Non-GAAP EPS guidance for fiscal 2027 is $2.85 to $2.95, reflecting mid-teens growth of 13% to 17% (15% at midpoint).
- →Q1 fiscal 2027 revenue guidance at $1.3 billion to $1.325 billion, with 8% to 10% pro forma growth.
- →Q1 fiscal 2027 EPS guidance of $0.68 to $0.70, representing mid-teens growth of 13% to 17%.
- →Earnings growth driven by accelerating top-line growth, expanding product portfolio, and scaling cross-sell and upsell opportunities.
- →Continued disciplined capital allocation with investment in innovation, share repurchases, and debt reduction.
- →Operating margins expected to remain stable with no significant structural change; Cyber Safety at ~61%, Trust-Based Solutions at ~30%.
- →Long-term outlook includes sustained double-digit revenue growth beyond fiscal 2027 through synergistic benefits and AI-led efficiencies.
🏗️ Capital Expenditure Plans
Yes- →The company plans disciplined investment in innovation, focusing on developing new products and synergistic opportunities across segments.
- →They have the ability to use "dry powder" (available capital) for disciplined internal innovation investments.
- →No significant change expected in margin architecture; the focus is on expanding and investing rather than constricting.
- →There will be continued capital deployment in a balanced manner toward share repurchase, debt repayment, and tuck-in acquisitions.
- →In fiscal 2026, approximately 20% of capital was used for targeted tuck-in acquisitions to expand capabilities and accelerate growth.
- →Overall, the company is committed to disciplined capital allocation prioritizing growth investments while maintaining financial flexibility.
- →No specific large CapEx projects were highlighted; emphasis is on innovation and synergistic growth initiatives.
💰 Fundraising & Capital Structure
No information- →No specific mention of new fundraising through debt or equity in the provided pages.
- →The company has successfully refinanced its Term Loan A at lower rates and extended maturities to 2031.
- →As of Q4, the net leverage is at 3x EBITDA, achieving their target a year ahead of schedule.
- →They generated strong free cash flow and have a disciplined capital allocation strategy involving debt repayment, share repurchases, and tuck-in M&A.
- →They have $2.1 billion remaining under their share repurchase authorization.
- →Future capital deployment will likely continue in a balanced manner focusing on growth investment, deleveraging, and shareholder returns.
- →No explicit plans announced for raising new debt or equity at this time.
📋 Order Book & Pipeline
Yes- →Total bookings for fiscal year 2026 reached a record $5.1 billion, up 28% as reported and up 10% pro forma.
- →Q4 bookings were $1.36 billion, up 27% year-over-year and up 10% pro forma.
- →For fiscal year 2027, expected full-year revenue is projected in the range of $5.325 billion to $5.425 billion, reflecting 8% to 10% pro forma growth.
- →Q1 fiscal 2027 bookings are expected in the range of $1.3 billion to $1.325 billion, representing 8% to 10% pro forma growth.
- →Growth drivers include continued customer acquisition, product portfolio expansion, cross-sell and upsell, and synergies from financial wellness and AI initiatives.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Gen Digital Inc. Q2 FY26 results?
- Full year fiscal 2027 revenue expected between $5.325 billion and $5.425 billion, representing 8% to 10% pro forma growth. - Fiscal year 2027 revenue expected in the range of $5.325 billion to $5.425 billion, representing 8% to 10% pro forma growth.
What is Gen Digital Inc. share price analysis?
Gen Digital Inc. currently shows a below-average growth signal. The stock trades at a P/E of 15.8 with a market cap of $14,790. Investors should review the full earnings analysis for detailed insights.
Is Gen Digital Inc. planning capital expenditure?
- The company plans disciplined investment in innovation, focusing on developing new products and synergistic opportunities across segments.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.