Overview

* Gen Digital ( GEN ) 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 ( GEN ) expects Q3 FY26 revenue between $1.22 bln and $1.24 bln

* Gen Digital ( GEN ) raises FY26 revenue guidance to $4.92 bln-$4.97 bln

* Gen Digital ( GEN ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.22 $1.20

Revenue bln bln (5

Analysts

)

Q2 Beat $0.62 $0.61 (7

Adjusted Analysts

EPS )

Q2 EPS $0.21

Q2 $438 mln

Operatin

g Income

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 ( GEN ) 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:

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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.)