Gen Digital Raises 2027 Revenue Outlook to $5.515 Billion After 12% Quarterly Growth
Key Facts
Gen Digital raised its fiscal 2027 outlook, setting a revenue range of $5.465 billion to $5.515 billion and non-GAAP earnings per share of $2.93 to $2.98, according to a company statement on October 28. The revision follows second-quarter revenue growth of 12% year over year to $1.369 billion. Quarterly revenue also topped the average analyst estimate of $1.34 billion, according to data compiled by LSEG and cited by Reuters. Reuters reported revenue of about $1.37 billion, versus the same estimate. The move reflects the company raising its annual range after quarterly performance that management described as double-digit growth.
The low end of the annual revenue outlook rose from $5.375 billion to $5.465 billion, while the high end increased from $5.475 billion to $5.515 billion. The company also raised its earnings-per-share outlook from $2.87–$2.97 to $2.93–$2.98. Both ends of the revenue range moved higher, while the low and high ends of the EPS range rose compared with the previous guidance. The company presented these figures as its fiscal 2027 outlook, and they are non-GAAP figures. Chief Financial Officer Natalie Derse said, "Customer demand is strong, and we remain committed to investment discipline, efficiency and profitable growth."
The company reported second-quarter GAAP operating income of $507 million, up 16% year over year, and diluted GAAP earnings per share of $0.48, up 122%. Cyber Safety platform revenue was about $858 million, compared with $814 million in the year-earlier period. Trust-Based Solutions revenue rose to $511 million from $406 million. The figures show growth in both businesses, with a larger increase in the reported value of Trust-Based Solutions between the two periods. Quarterly growth extended beyond revenue: bookings reached $1.347 billion, up 10%, marking a sixth consecutive quarter of double-digit growth.
Gen defines bookings as customer orders that it expects to generate future revenue, and uses them as an indicator of demand for its products and services. In the first quarter of fiscal 2027, the company reported revenue of $1.336 billion and bookings of $1.284 billion. Its previous second-quarter guidance called for revenue of $1.325 billion to $1.350 billion and earnings per share of $0.71 to $0.73, according to its August 6 announcement. Actual second-quarter revenue was $1.369 billion, topping the high end of that range. Chief Executive Officer Vincent Pilette said consumers sought help dealing with AI-powered scams and the growing use of AI agents, Reuters reported.
Paid customers rose to 83 million on October 2, 2026, from 77 million on October 3, 2025. Operating cash flow since the start of the fiscal year totaled $760 million in the six months ended October 2, up 45% year over year. Non-GAAP free cash flow reached $753 million, up 47% over the same period. These indicators place customer-base and cash-flow expansion alongside quarterly growth in revenue and bookings. The board approved a quarterly cash dividend of $0.125 per share, payable December 9 to shareholders of record on November 16.
Gen shares rose about 7% in extended trading after the results were announced, Reuters reported. The stock closed at $24.35 on October 28, compared with $24.25 the previous day, according to EL7 data. The company forecast third-quarter fiscal revenue of $1.365 billion to $1.390 billion on a non-GAAP basis, and earnings per share of $0.73 to $0.75. The quarterly outlook follows second-quarter revenue topping the average analyst estimate and the company posting a sixth consecutive quarter of bookings growth. The cash dividend is scheduled to be paid on December 9, 2026, to shareholders of record on November 16, 2026.