Gen Digital (GEN) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $1.34 billion (up 11% non-GAAP, 6% GAAP), 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 adoption of higher-tier memberships and record cross-sell.

• AI-driven threats and consumer anxiety are fueling demand for protection, positioning the company as a trusted partner in digital and financial safety.

• Operating income rose 9% year-over-year to $668 million non-GAAP, with a 50% operating margin.

Financial highlights

• Q1 bookings grew 11% year-over-year to $1.28 billion; revenue rose 11% non-GAAP to $1.34 billion, with GAAP revenue at $1.336 billion.

• Operating profit increased 9% year-over-year to $668 million non-GAAP; GAAP operating income was $443 million.

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

• Gross margin was 82% non-GAAP and 77% GAAP; operating margin was 50% non-GAAP and 33% GAAP.

• Free cash flow was $430 million; operating cash flow $434 million.

Outlook and guidance

• FY27 non-GAAP revenue guidance raised to $5.375–$5.475 billion, reflecting 9%-11% growth; non-GAAP EPS guidance raised to $2.87–$2.97, up 14%-18% year-over-year.

• 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%.

• Long-term growth expected from embedded financial wellness, partner expansion, and Engine monetization.

• Management remains confident in long-term business health despite macroeconomic uncertainty.