Gen Digital Q3 EPS 64¢ Tops Estimates, Revenues Jump 25.8% to $1.24B
Gen Digital reported Q3 non-GAAP EPS of $0.64, a 14% year-over-year increase and 1.6% above consensus, on $1.24 billion in revenues, which rose 25.8% year-over-year and beat estimates by 1.1%. Trust-Based Solutions sales surged 125% to $421 million while bookings grew 27.4% to $1.32 billion.
1. Q3 Financial Results
Gen Digital delivered non-GAAP earnings of $0.64 per share in Q3 fiscal 2026, up 14% year-over-year and exceeding consensus by 1.6%. Revenues reached $1.24 billion, marking a 25.8% increase from the prior year and beating estimates by 1.07%.
2. Segment Performance
Cyber Safety revenues grew 2.5% to $819 million, while Trust-Based Solutions surged 125% to $421 million. Direct Customer sales climbed 18% to $1.03 billion, and Partner revenues rose 87% to $215 million.
3. Profitability and Margins
Non-GAAP gross profit increased 21.8% to $1.04 billion, but gross margin contracted by 270 bps to 83.5%. Operating expenses rose 49% to $406 million, lifting the non-GAAP operating margin down 780 bps to 50.7%.
4. Cash Flow, Balance Sheet and Guidance
Gen Digital generated $535 million in free cash flow and ended the quarter with $619 million in cash against $8.49 billion in long-term debt. The company raised full-year revenue guidance to $4.96–$4.98 billion and expects Q4 non-GAAP EPS of $0.64–$0.66.