Gen Digital Q2 FY27: 12% revenue growth, EPS beat, guidance raised
Gen Digital's Q2 FY27 was a growth quarter with a margin asterisk: revenue rose 12.2% to $1.369 billion, non-GAAP EPS of $0.74 beat the $0.7265 consensus, and management raised full-year guidance. The read-through is positive on demand and bookings, less clean on gross margin, which fell to 75.9%. We treat the raised outlook as the main signal and the margin decline as the main thing to watch.
1 · Expected vs. Actual
Free preview belowNon-GAAP EPS was $0.74, up 19.4% from $0.62 and above the $0.7265 consensus by about 1.9%. GAAP EPS was $0.48, up from $0.21, with the prior-year period carrying a $69 million fair-value impairment and a $59 million other expense. The gap between GAAP and non-GAAP remains large because non-GAAP excludes $0.20 per share of intangible amortization and $0.09 of stock-based compensation.
Revenue was $1.369 billion, up 12.2% from $1.220 billion a year earlier, while cost of revenue rose 24.1% to $330 million. Trust-Based Solutions grew 25.9% to $511 million, far faster than Cyber Safety Platform's 5.4% rise to $858 million. That mix helped revenue but total gross margin still slipped to 75.9% from 78.2%.
Q3 guidance is $1.365–$1.390 billion of revenue and $0.73–$0.75 of EPS, with the revenue midpoint of $1.378 billion about 0.6% above Q2. Full-year revenue guidance rose to $5.465–$5.515 billion from $5.375–$5.475 billion, and EPS to $2.93–$2.98 from $2.87–$2.97. The four-entry guidance history shows actual next-quarter revenue above the prior midpoint each time.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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