Gen Digital (GEN) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $1.34 billion non-GAAP (up 11% YoY) and $1.336 billion GAAP (up 6% YoY), with non-GAAP EPS up 19% to $0.71 and GAAP EPS up 65% to $0.36, both exceeding guidance.

• Paid customers grew to 81 million, marking the 11th consecutive quarter of sequential growth and a 5 million increase year-over-year.

• Both Cyber Safety and Trust-Based Solutions segments contributed to broad-based growth, with strong customer retention and deepening relationships.

• AI-driven threats and consumer anxiety are fueling demand for advanced protection, driving adoption of higher-tier memberships and cross-sell opportunities.

• Operating income was $668 million non-GAAP (up 9% YoY) and $443 million GAAP, with a 50% non-GAAP operating margin.

Financial highlights

• Q1 bookings were $1.284 billion non-GAAP (up 11% YoY); revenue was $1.34 billion non-GAAP (up 11% YoY) and $1.336 billion GAAP (up 6% YoY).

• Net income was $431 million non-GAAP and $215 million GAAP, with diluted EPS of $0.71 non-GAAP and $0.36 GAAP.

• Gross margin was 82% non-GAAP and 77% GAAP, slightly down due to product mix.

• Free cash flow was $430 million for Q1; cash and equivalents at quarter-end were $564 million, with over $2 billion in liquidity.

• Returned $181 million to shareholders via $100 million in share repurchases and $81 million in dividends.

Outlook and guidance

• FY27 non-GAAP revenue guidance raised to $5.375–$5.475 billion (9–11% YoY growth); non-GAAP EPS guidance raised to $2.87–$2.97 (14–18% YoY growth).

• Q2 FY27 non-GAAP revenue expected at $1.325–$1.35 billion, with non-GAAP EPS of $0.71–$0.73.

• Segment margins expected stable: Cyber Safety 60%+, Trust-Based Solutions 30%.

• Management remains confident in long-term growth, citing embedded financial wellness, partner expansion, and Engine monetization.

• No material changes to critical accounting estimates or guidance for the remainder of fiscal 2027.