"As AI transforms digital life and the threat landscape, consumers need protection and guidance they can trust," said Vincent Pilette, CEO of Gen. "Our Q3 results confirm that Gen's platform strategy is resonating. By uniting advanced intelligence and signals across security, identity and financial wellness at unmatched scale, we're delivering personalized protection and contextual recommendations for our customers at the moments that matter the most."
Q3 Fiscal Year 2026 Financial Highlights
Q3 GAAP Results
Revenue of $1,240 million, up 26%
Operating income of $433 million, up 16%
Diluted EPS of $0.31, up 22%
Year-to-date operating cash flow of $1,066 million, up 43%
Q3 Non-GAAP Results
Bookings of $1,319 million, up 27%
Revenue of $1,240 million, up 26%
Operating income of $629 million, up 9%
Diluted EPS of $0.64, up 14%
Year-to-date free cash flow of $1,047 million, up 42%
"We delivered a strong Q3 with continued growth momentum. The strength of our financial model continues to generate substantial free cash flow enabling us to invest in growth and innovation while deploying nearly $700 million of capital to shareholders during the quarter," said Natalie Derse, CFO of Gen. "As we scale our trusted AI-powered platform and expand our leadership in secure financial wellness, we remain sharply focused on driving growth, operating discipline, and long-term shareholder value."
Non-GAAP Q4 Fiscal Year 2026 Guidance
Q4 FY26 Revenue expected to be in the range of $1.24 billion to $1.26 billion
Q4 FY26 EPS expected to be in the range of $0.64 to $0.66
Raising Non-GAAP Fiscal Year 2026 Guidance
FY26 Revenue expected to be in the range of $4.955 billion to $4.975 billion, compared to prior guidance of $4.920 billion to $4.970 billion
FY26 EPS expected to be in the range of $2.54 to $2.56, compared to prior guidance of $2.51 to $2.56
Quarterly Cash DividendGen's Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on March 11, 2026, to all shareholders of record as of the close of business on February 16, 2026.
Q3 Fiscal Year 2026 Earnings CallFebruary 5, 20262 p.m. PT / 5 p.m. ET
Webcast & Dial-in instructions at Investor.GenDigital.com. A replay will be posted following the call. For additional details regarding Gen's results and outlook, please see the Financials section of the Investor Relations website at Investor.GenDigital.com.
About Gen Gen (NASDAQ:GEN) is a global company dedicated to powering Digital Freedom through its trusted consumer brands including Norton, Avast, LifeLock, MoneyLion and more. The Gen family of consumer brands is rooted in providing financial empowerment and cyber safety for the first digital generations. Today, Gen empowers people to live their digital lives safely, privately and confidently for generations to come. Gen brings award-winning products and services in cybersecurity, online privacy, identity protection and financial wellness to nearly 500 million users in more than 150 countries. Learn more at GenDigital.com.
Forward-Looking StatementsThis press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, the quotes under "Q3 Fiscal Year 2026 Financial Highlights" including expectations relating to achievement of long-term objectives, and the statements under "Non-GAAP Q4 Fiscal Year 2026 Guidance" and "Non-GAAP Fiscal Year 2026 Guidance" including expectations relating to Q4 Fiscal Year 2026 and Fiscal Year 2026 non-GAAP revenue and non-GAAP EPS, and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated cost savings from any such acquisitions); divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities; the outcome or impact of pending litigation, claims or disputes; difficulties in executing the operating model for the consumer Cyber Safety business; lower than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer and partner relationships; the anticipated growth of certain market segments; fluctuations and volatility in our stock price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices; and general business and macroeconomic changes in the U.S. and worldwide, including economic recessions, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates, and ongoing and new geopolitical conflicts, and other global macroeconomic factors on our operations and financial performance. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or are not described in our periodic filings, generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments.
Use of Non-GAAP Financial InformationWe use non-GAAP measures of operating margin, operating income, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, and constant currency revenues. These non-GAAP financial measures are provided to enhance the user's understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing Gen's performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release, and which can be found, along with other financial information including the Earnings Presentation, on the investor relations page of our website at Investor.GenDigital.com. No reconciliation of the forecasted range for non-GAAP revenues and EPS guidance is included in this release because most non-GAAP adjustments pertain to events that have not yet occurred. It would be unreasonably burdensome to forecast, therefore we are unable to provide an accurate estimate.
GEN DIGITAL INC.
Condensed Consolidated Balance Sheets
(Unaudited, in millions)
January 2, 2026
March 28, 2025
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$ 619
$ 1,006
Accounts receivable, net
361
171
Other current assets
257
245
Assets held for sale
16
22
Total current assets
1,253
1,444
Property and equipment, net
69
60
Intangible assets, net
2,212
2,267
Goodwill
10,847
10,237
Deferred income tax assets
1,258
1,218
Other long-term assets
192
269
Total assets
$ 15,831
$ 15,495
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$ 83
$ 94
Accrued compensation and benefits
116
105
Current portion of long-term debt
240
291
Contract liabilities
1,822
1,846
Other current liabilities
427
515
Total current liabilities
2,688
2,851
Long-term debt
8,167
7,968
Long-term contract liabilities
84
77
Deferred income tax liabilities
220
222
Long-term income taxes payable
1,583
1,420
Other long-term liabilities
757
688
Total liabilities
13,499
13,226
Total stockholders' equity (deficit)
2,332
2,269
Total liabilities and stockholders' equity (deficit)
$ 15,831
$ 15,495
GEN DIGITAL INC.
Condensed Consolidated Statements of Operations
(Unaudited, in millions, except per share amounts)
Three Months Ended
Nine Months Ended
January 2, 2026
December 27, 2024
January 2, 2026
December 27, 2024
Net revenues
$ 1,240
$ 986
$ 3,717
$ 2,925
Cost of revenues
268
193
801
577
Gross profit
972
793
2,916
2,348
Operating expenses:
Sales and marketing
307
182
901
549
Research and development
96
84
305
248
General and administrative
70
108
204
224
Amortization of intangible assets
55
43
164
130
Restructuring and other costs
11
2
25
4
Total operating expenses
539
419
1,599
1,155
Operating income (loss)
433
374
1,317
1,193
Interest expense
(137)
(141)
(439)
(443)
Other income (expense), net
13
(25)
(36)
(8)
Income (loss) before income taxes
309
208
842
742
Income tax expense (benefit)
117
49
381
241
Net income (loss)
$ 192
