Overview
Gen Digital Q2 revenue up 25% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beats analyst expectations, rising 15% yr/yr
Company raises FY26 revenue and EPS guidance, indicating growth confidence
Outlook
Gen Digital expects Q3 FY26 revenue between $1.22 bln and $1.24 bln
Gen Digital raises FY26 revenue guidance to $4.92 bln-$4.97 bln
Gen Digital anticipates FY26 EPS of $2.51 to $2.56
Result Drivers
SUBSCRIPTION MODEL - Gen attributes record Q2 results to its high-value subscription model expanding into secure financial wellness
AI PLATFORM - Gen's AI-powered platform combining security, privacy, identity, and financial wellness cited as unique market advantage
FINANCIAL DISCIPLINE - CFO Natalie Derse cites consistent EPS growth and financial discipline as drivers of Q2 performance
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.22 bln
$1.20 bln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.62
$0.61 (7 Analysts)
Q2 EPS
$0.21
Q2 Operating Income
$438 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Gen Digital Inc is $33.00, about 21.7% above its November 5 closing price of $25.84
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nPn3wPmdTa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)