GEN — Gen Digital Inc.

Summary of GEN Q3 2026 Earnings Call

1. Key Financial Results and Metrics:

• Bookings: $1.3 billion, up 27% year-over-year; 10% growth on a pro forma basis.
• Revenue: $1.2 billion, a 26% increase year-over-year; 8% growth pro forma.
• Non-GAAP EPS: 64¢, up 14% year-over-year, marking the ninth consecutive quarter of achieving or exceeding the 12-15% EPS growth target.
• Operating Income: $629 million, with a 51% operating margin.
• Free Cash Flow: $535 million generated in Q3, with a cash balance of $619 million.
• Customer Base: Over 78 million paid customers, with a 1 million increase sequentially.

2. Strategic Updates and Business Highlights:

• Gen is focusing on building a trusted AI-powered platform for online safety and financial management.
• The company launched the world's first agent trust hub and the Norton NEO safe AI browser, addressing new vulnerabilities introduced by AI agents.
• Cyber safety bookings grew 5%, with significant demand for Norton 360 with LifeLock offerings.
• MoneyLion saw nearly 40% revenue growth, with strong performance in personal finance products and the introduction of MoneyOne, a new subscription service.
• A partnership with Equifax was announced to enhance customer insights and financial product offerings.

3. Forward Guidance and Outlook:

• Full-year revenue guidance raised to $4.955 billion - $4.975 billion, up from previous expectations.
• Non-GAAP EPS guidance increased to $2.54 - $2.56 for fiscal 2026.
• Q4 revenue expected in the range of $1.24 billion - $1.26 billion, with EPS between 64¢ - 66¢.
• The company remains committed to disciplined cost management while investing in long-term growth initiatives.

4. Bad News, Challenges, or Points of Concern:

• The company noted a stable but low consumer sentiment, which could impact demand.
• There is an ongoing need to educate consumers on the importance of cybersecurity in the evolving landscape of AI.
• The integration of MoneyLion and the realization of synergies are still in early stages, with expectations for more clarity in future quarters.

5. Notable Q&A Insights:

• Vincent Pilette emphasized the growing need for security in the AI landscape, highlighting the potential for increased demand for cyber safety solutions.
• The company is cautious about transitioning MoneyLion to a subscription model, ensuring customer experience is not compromised.
• The partnership with Equifax is expected to enhance both companies' offerings and drive incremental adoption of MoneyLion products.
• The management team expressed confidence in their ability to navigate macroeconomic challenges while maintaining growth and profitability.