Gen Digital Inc

Record FY26 and Q4 results - Good, structural acceleration despite AI disintermediation fears: FY26 was Gen's strongest in a decade and 7th consecutive year of growth. Bookings hit a record $5.1 billion, up 28% reported and up 10% pro forma, and revenue crossed $5 billion for the first time at $5.0 billion, up 27% reported and up 9% pro forma, beating guidance. Non-GAAP EPS was $2.56, up 15% year-over-year at the high end of guidance, marking 10 consecutive quarters of 12-15% growth. Operating income was $2.5 billion at a 51% margin, free cash flow was $1.5 billion, over 30% of revenue and up 26% year-over-year, and net leverage reached 3x EBITDA a year ahead of plan. In Q4 alone, bookings were $1.36 billion, up 27% reported / 10% pro forma, revenue was $1.28 billion, up 27% / 9% pro forma, operating income was $641 million, up 9% at a 50% margin, net income was $408 million and EPS was $0.67, up 14% and above guidance. Since Gen was formed 6 years ago as a $2 billion company, revenue has more than doubled, EPS has nearly tripled, and $6 billion has been returned to shareholders.

Raised FY27 and Q1 FY27 outlook - Good / Surprising trajectory shift: Management raised its midterm targets from mid-single-digit revenue growth and 12-15% EPS growth to 8-10% revenue growth and mid-teens EPS growth. For FY27, revenue is guided to $5.325-$5.425 billion, 8-10% pro forma growth, and non-GAAP EPS to $2.85-$2.95, 13-17% pro forma growth with 15% at the midpoint. For Q1 FY27, revenue is guided to $1.30-$1.325 billion, 8-10% pro forma growth, and EPS to $0.68-$0.70, 13-17% growth. The guide assumes current FX rates with significant volatility still possible, and is based on further synergies, cross-sell/upsell, and AI-led efficiencies, including over $100 million in incremental annual revenue from embedded financial wellness and Engine growth beginning in H2 FY27 and scaling into FY28-29.

Two-engine growth: Cyber Safety steady and profitable, Trust-Based Solutions fast-growing - Good: Cyber Safety, a $3.3 billion franchise, grew bookings 5% and revenue 3% pro forma for the full year, with Q4 revenue growth accelerating to 4% and bookings up 5%, at a 61% segment margin. Trust-Based Solutions, nearing $1.7 billion, grew bookings 24% and revenue 23% pro forma for the year, and bookings 21% and revenue 20% pro forma in Q4 - more than doubling on a reported basis - at a 30% margin, creating mix/margin dilution vs. Cyber Safety but large profit-dollar growth. Within Trust, MoneyLion grew over 40% in its first full year and nearly 40% in Q4, approaching $1 billion in annual revenue combined with Engine, with record Q4 origination and over 2/3 of first-party revenue from repeat customers. LifeLock retention touched 90%, NPS reached a record 73, up 4 points, mobile revenue grew almost 50%, and the reimagined app reached approximately 3 million customers. Engine delivered record revenue, added over 30 new partnerships in Q4, processes nearly 400 million annual inquiries, and has tripled revenue in 3 years, with a partner channel up 20% pro forma and approaching a $1 billion run-rate.