Gen Digital raises annual forecast as second-quarter bookings grow

Gen Digital Inc. (GEN) raised its fiscal 2027 revenue and earnings forecasts on Oct. 28, after reporting second-quarter results for the period ended Oct. 2. The company said in a press release furnished with a Form 8-K filing.

Revenue for the quarter was $1.369 billion, above the $1.35 billion consensus estimate compiled by Finnhub. Non-GAAP diluted EPS was $0.74, above the $0.73 estimate.

Here's how the company did:

• Revenue: $1.369 billion vs. $1.220 billion a year earlier, up 12%
• Non-GAAP diluted EPS: $0.74 vs. $0.62 a year earlier, up 19%
• GAAP diluted EPS: $0.48, up 122%
• Bookings: $1.347 billion, up 10%
• Operating income: $507 million on a GAAP basis, up 16%

Total bookings rose 10% to $1.347 billion. The company said it had a record high customer count, and paid customers reached 83 million, up from 77 million a year earlier.

Chief Executive Officer Vincent Pilette said, "We delivered our sixth consecutive quarter of double-digit bookings growth." He added that the company's innovation and platform investment are resonating with consumers.

Guidance

The company raised its fiscal 2027 revenue forecast to $5.465 billion to $5.515 billion. The previous range, given Aug. 6, was $5.375 billion to $5.475 billion.

The fiscal 2027 non-GAAP EPS forecast rose to $2.93 to $2.98, from $2.87 to $2.97 in August.

For the third quarter, the company expects revenue of $1.365 billion to $1.390 billion and non-GAAP EPS of $0.73 to $0.75.

Chief Financial Officer Natalie Derse said, "That balance gives us the confidence to invest in our highest potential opportunities and raise full-year guidance again."

Segment results

Cyber Safety Platform revenue was $858 million, up from $814 million a year earlier. Trust-Based Solutions revenue was $511 million, up from $406 million.

Direct revenue was $1.074 billion, up from $1.010 billion. Partner revenue was $295 million, up from $210 million.

Cash and capital returns

Year-to-date operating cash flow was $760 million, up from $525 million a year earlier. Year-to-date free cash flow was $753 million.

The board approved a regular quarterly cash dividend of $0.125 per common share, payable Dec. 9 to holders of record on Nov. 16. The company repurchased $171 million of common stock in the quarter.

The company said it will host a webcast of its results call at 2 p.m. PT on Oct. 28.