Gen Digital Q1 FY26 slides: revenue surges 30%, guidance raised on MoneyLion momentum

Introduction & Market Context

Gen Digital (NASDAQ:GEN) reported robust first-quarter fiscal 2026 results on August 7, 2025, showcasing strong growth across its cybersecurity and financial wellness segments. The company, which positions itself as a leader in consumer cyber safety and financial wellness solutions, delivered record revenue of $1.257 billion, representing a 30% year-over-year increase.

The results demonstrate Gen’s successful integration of MoneyLion into its portfolio, expanding its footprint beyond traditional cybersecurity into comprehensive financial wellness offerings. This strategic expansion comes amid an evolving threat landscape, with the company noting increased sophistication in cyber attacks, including AI-powered ransomware and rising financial scams.

As shown in the following overview of Gen’s market position and capabilities:

Quarterly Performance Highlights

Gen Digital reported significant financial growth in Q1 FY26, with non-GAAP earnings per share reaching $0.64, up 20% year-over-year. The company maintained robust operating margins at 51.7%, while bookings increased 32% to $1.202 billion compared to the same period last year.

The company’s financial performance was particularly strong, marking the seventh consecutive quarter of double-digit EPS growth. This consistent performance reflects Gen’s focused execution and balanced capital allocation strategy.

The following chart illustrates Gen’s key financial metrics for the quarter:

Breaking down the results further, Gen’s Q1 FY26 performance showed strength across multiple financial indicators. Gross profit increased 27% year-over-year to $1.057 billion, though gross margin contracted slightly by 2 percentage points to 84%. Operating income grew 15% to $650 million, while operating expenses increased 51% to $407 million, primarily due to the integration of MoneyLion.

The detailed financial breakdown is presented in the following table:

Gen’s business is divided into two main segments: Cyber Safety Platform and Trust-Based Solutions. The Cyber Safety Platform, which includes security, cyber safety suites, and privacy business lines, delivered revenue of $869 million, up 11% year-over-year, with an impressive operating margin of 61%. Meanwhile, the Trust-Based Solutions segment, encompassing identity, reputation, and financial wellness offerings, saw revenue surge 110% to $388 million, driven by the MoneyLion acquisition.

Strategic Initiatives

Gen Digital has positioned itself at the center of consumers’ digital lives, offering a comprehensive suite of services spanning privacy, security, identity, and financial wellness. The company’s strategy revolves around building trust with consumers through integrated solutions that address multiple aspects of digital life.

The following diagram illustrates Gen’s holistic approach to consumer digital protection:

A key strategic focus for Gen has been its expansion into financial wellness through the MoneyLion acquisition. This move has significantly broadened the company’s offerings beyond traditional cybersecurity into a comprehensive financial ecosystem that includes personal financial management, marketplace products, and financial offers.

As shown in the following overview of MoneyLion’s capabilities:

The MoneyLion integration has created what Gen describes as "The Ultimate Financial Marketplace," with an ecosystem of over 1,300 partners that drove approximately 90 million customer inquiries in Q1 FY26. This marketplace represents a significant revenue opportunity through partner channel growth.

The following slide illustrates the scale and integration of the financial marketplace:

Gen’s customer base has expanded significantly, with total paid customers reaching 76.2 million in Q1 FY26. This includes 40.6 million direct customers, 27.6 million partner customers (excluding MoneyLion), and 8.2 million MoneyLion customers. The company has maintained strong customer retention at 78%, with direct monthly ARPU (average revenue per user) of $7.25.

Technological Innovations

In response to evolving cyber threats, Gen has strengthened its scam protection capabilities with new deepfake detection technology. The company has integrated Norton Deepfake Detection into Norton 360 with Genie AI assistant, allowing users to identify AI-generated deepfake audio and videos. Additionally, Gen has built this technology into select AI PCs for real-time scam detection.

The following slide details these technological enhancements:

Gen’s focus on protecting consumers extends beyond traditional cybersecurity to address emerging threats in an increasingly complex digital landscape. The company highlighted that the first known AI-powered ransomware has been discovered, data breaches have increased by 21%, and financial scams are surging on social media platforms.

As illustrated in this overview of the evolving threat landscape:

Forward-Looking Statements

Based on its strong Q1 performance, Gen Digital has raised its full-year fiscal 2026 guidance. The company now expects annual revenue between $4.80 billion and $4.90 billion, up from the previous guidance of $4.70 billion to $4.80 billion. Non-GAAP earnings per share are projected to be between $2.49 and $2.56, compared to the earlier forecast of $2.46 to $2.54.

For the second quarter of fiscal 2026, Gen anticipates revenue between $1.18 billion and $1.21 billion, with non-GAAP EPS between $0.60 and $0.62.

The updated guidance is presented in the following table:

The company’s raised outlook reflects confidence in its ability to continue executing its growth strategy, particularly as it further integrates MoneyLion and expands its financial wellness offerings. Gen expects revenue growth of 22-25% year-over-year and EPS growth of 12-15% for the full fiscal year.

Gen Digital’s strong Q1 FY26 results and raised guidance demonstrate the company’s successful execution of its strategy to expand beyond traditional cybersecurity into financial wellness, while continuing to innovate in response to evolving digital threats. The integration of MoneyLion appears to be progressing well, creating new growth opportunities through an expanded financial marketplace and a larger customer base.

Full presentation:

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