Gen Digital Raises 2027 Outlook After Second-Quarter Revenue Rises 12% to $1.37 Billion
Key Facts
Gen Digital raised its fiscal 2027 outlook after reporting second-quarter revenue of $1.37 billion and adjusted non-GAAP earnings of $0.74 per share, topping analyst estimates of $1.34 billion and $0.72, respectively. The company reported results on October 28, 2026, after the market close, as previously scheduled. Revenue rose 12% from the same period a year earlier, while adjusted earnings per share increased 19%. This was the second quarter of fiscal 2027, which ended on October 2, contrary to the preliminary version of the report. GEN shares closed at $24.25 on October 27, before the results were announced. The results and updated outlook place the quarter’s performance within a growth trajectory that management says has extended to bookings and customers.
The chief executive said the company had delivered its sixth consecutive quarter of double-digit bookings growth and that customer numbers had reached a record. The quarter ended with 83 million paid customers, up 2 million from the previous quarter and 6 million from a year earlier. These figures show the customer base expanded during a period when revenue rose 12% year over year. Management did not attribute the performance solely to operating efficiency; the chief financial officer said demand was strong and that the company was balancing investment, efficiency and profitable growth. She added: "Customer demand is strong, and we remain committed to disciplined investment, efficiency and profitable growth." Management’s comments link demand with disciplined resource allocation, without providing a numerical breakdown of each factor’s contribution to results.
The second-quarter results offer a clear comparison with the first quarter of fiscal 2027, when the company reported revenue of $1.336 billion and diluted earnings per share of $0.71. Gen had then forecast second-quarter revenue of $1.325 billion to $1.350 billion and earnings per share of $0.71 to $0.73. Reported revenue of $1.37 billion and adjusted earnings per share of $0.74 came in above the top end of both ranges, bearing in mind that the prior earnings figure is described as diluted while the current result is non-GAAP. The result also topped analyst estimates of $1.34 billion and $0.72 per share. The current quarter’s report follows a quarter in which revenue grew 11% year over year, according to the company’s first-quarter release.
The company raised its fiscal 2027 outlook, but the information provided here does not specify the new full-year range, so the available detail focuses on the coming quarter’s guidance. Gen expects third-quarter revenue of $1.37 billion to $1.39 billion and earnings per share of $0.73 to $0.75. The revenue range compares with a consensus analyst estimate of $1.35 billion, while their earnings-per-share estimate is $0.73. That means the low end of the revenue forecast is above consensus, while the earnings-per-share range starts at the estimate. The guidance follows the full-year outlook increase and offers a near-term indication of what management expects for performance in the next quarter.
The company’s earlier announcement set the release of second-quarter results for October 28, 2026, after the market close, followed by a management conference call and webcast at 2 p.m. Pacific time and 5 p.m. Eastern time. This allowed investors to review the results and guidance after the trading session ended on the day of the announcement. EL7 data show that shares closed at $24.25 on October 27 and do not include a closing price for the day the results were published. The stock’s performance in the post-announcement session is not available in the figures provided. The next specified update is the company’s third-quarter fiscal 2027 forecast, with expected revenue of $1.37 billion to $1.39 billion and earnings of $0.73 to $0.75 per share.