Gen Digital Inc. reported Q2 2026 revenue of $1.22 billion, a 25% year‑over‑year increase that surpassed the consensus estimate of $1.19 billion by $30 million. Non‑GAAP diluted earnings per share rose to $0.62, beating the $0.61 estimate by $0.01, or 1.6%. The revenue lift was driven by a 119% surge in the Trust‑Based Solutions segment, largely attributable to the MoneyLion acquisition, while the Cyber Safety Platform grew 3% to $814 million, reflecting steady demand for its subscription‑based security services.
The Cyber Safety Platform maintained a 61% operating margin, underscoring the high‑margin nature of its subscription model. In contrast, the Trust‑Based Solutions segment posted a 30% margin, lower than the platform but still healthy given its rapid growth. Gross margin contracted 240 basis points to 83.7%, a result of increased spending on AI‑driven product development and higher cost of sales associated with the expanding MoneyLion portfolio.
Management raised its full‑year 2026 revenue outlook to $4.92 billion–$4.97 billion, up from the prior guidance of $4.88 billion–$4.93 billion, and lifted non‑GAAP EPS guidance to $2.51–$2.56, compared with the previous $2.45–$2.50 range. Q3 guidance was also increased to $1.22 billion–$1.24 billion in revenue and $0.62–$0.64 in EPS. The upward revisions signal confidence in sustained demand for both cybersecurity and financial‑wellness services and reflect the company’s belief that its AI‑powered platform will continue to generate incremental revenue.
CEO Vincent Pilette highlighted the quarter as a “record result” driven by the “high‑value subscription model” expanding into “secure financial wellness.” CFO Natalie Derse noted that eight consecutive quarters of EPS growth at or above the 12‑15% target demonstrate “consistent execution and financial discipline.” Both executives emphasized continued investment in AI capabilities to strengthen the company’s competitive moat.
Investors responded positively to the earnings beat and guidance hike, citing the company’s strong execution, accelerated growth in the Trust‑Based Solutions segment, and confidence in its AI‑driven strategy as key drivers of the favorable market reaction.
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