Gen Digital Raises Fiscal 2027 Outlook Again as Q2 Revenue Grows 12%

Gen Digital raised its fiscal 2027 outlook for the second time on Wednesday after its fiscal second-quarter revenue grew 12% and GAAP earnings per share more than doubled, as its identity and financial wellness business continued to expand.

The Norton and LifeLock parent now expects full-year non-GAAP revenue of $5.465 billion to $5.515 billion, up from prior guidance of $5.375 billion to $5.475 billion, according to the earnings release it filed with an 8-K on Wednesday. It lifted its non-GAAP EPS forecast to $2.93 to $2.98 from $2.87 to $2.97.

A double-digit quarter

Revenue rose to $1.369 billion in the quarter ended Oct. 2 from $1.220 billion a year earlier. Bookings increased 10% to $1.347 billion.

For the first six months of the fiscal year, revenue totaled $2.705 billion, up from $2.477 billion, and GAAP net income rose to $502 million from $269 million.

"We delivered our sixth consecutive quarter of double-digit bookings growth," CEO Vincent Pilette said in the release. "We reached a record high customer count, alongside strong product engagement and retention."

GAAP net income more than doubled to $287 million, or $0.48 a diluted share, from $134 million, or $0.21, a year earlier. GAAP operating income rose 16% to $507 million. On a non-GAAP basis, operating income grew 10% to $686 million and EPS rose 19% to $0.74.

Trust-Based Solutions drives growth

Revenue from the Trust-Based Solutions segment, which includes identity, reputation and financial wellness products such as MoneyLion, climbed to $511 million from $406 million. The Cyber Safety Platform segment grew to $858 million from $814 million.

Partner revenue rose to $295 million from $210 million, while direct revenue increased to $1.074 billion from $1.010 billion.

Debt coming down

Interest expense fell to $123 million in the quarter from $146 million a year earlier. Long-term debt stood at $7.036 billion as of Oct. 2, down from $8.015 billion at the end of the prior fiscal year on April 3. GAAP operating margin widened to 37.0% from 35.9%, while the non-GAAP operating margin eased to 50.1% from 51.1%.

Cash flow and capital return

Year-to-date operating cash flow rose 45% to $760 million, and year-to-date free cash flow increased 47% to $753 million.

Gen repurchased $171 million of common stock in the quarter, compared with none a year earlier, according to its cash flow statement. The board approved a regular quarterly dividend of $0.125 a share, payable Dec. 9 to shareholders of record as of Nov. 16.

"That balance gives us the confidence to invest in our highest potential opportunities and raise full-year guidance again," CFO Natalie Derse said.

Third-quarter guide

For the fiscal third quarter, Gen expects non-GAAP revenue of $1.365 billion to $1.390 billion and non-GAAP EPS of $0.73 to $0.75.

Sources

1. Gen Digital Form 8-K with second-quarter fiscal 2027 earnings release (Exhibit 99.01), filed Oct. 28, 2026 (accession 0000849399-26-000081)

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