Gen Digital (GEN) Q1 2026 10-Q Quarterly Report

Filed: Feb 6, 2026Period ending Jan 2, 2026
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

Gen Digital (GEN) 10-Q quarterly report for Q1 2026, filed with SEC EDGAR on Feb 6, 2026 for the fiscal period ending Jan 2, 2026. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.

Gen Digital Q1 2026 10-Q Analysis

Management Discussion & Analysis

  • Revenue $1,240M Q3 FY26, up $254M YoY; nine months $3,717M, up $792M YoY; Trust-Based Solutions (incl. MoneyLion) +$234M Q3, +$658M nine months
  • Operating income rose $59M Q3 YoY; nine months up $124M YoY; net income +$33M Q3, but down $40M nine months; diluted EPS $0.31 Q3 vs $0.26 YoY
  • Best segment: Trust-Based Solutions with $234M Q3, $658M nine months growth (MoneyLion acquisition major factor); Cyber Safety Platform increased $20M Q3 and $134M nine months
  • Cash/equivalents $1,006M as of Jan 2, 2026, down $387M from March 2025 mainly due to MoneyLion acquisition cash payment, debt principal repayments, stock repurchases
  • Management cautious on global macroeconomic risks; reiterates confidence in product strength, long-term strategy; expects sufficient liquidity for next 12 months; announced $0.125/share dividend for March 2026 payment

Risk Factors

  • New AI deployment risk related to Gen AI integration causing legal, reputational harm and regulatory scrutiny; triggered by new AI technologies and the EU AI Act effective Aug 1, 2024
  • Most material update on regulatory risk: expanded focus on Gen AI regulation including transparency, IP, bias, privacy, and enforcement by U.S. and EU regulators increasing compliance costs
  • Legal risk: ongoing federal and state regulatory investigations and litigation, including consumer protection and lending compliance, causing significant legal expenses and management distraction
  • Operational risk: dependency on Broadcom’s Engine-Related Services critical to Norton product; failure or loss could cause significant disruption and competitive impact
  • Financial risk: $8.494B debt outstanding with maturities 2025-2030, $1.494B revolver availability, significant interest rate exposure mitigated partially by $1B interest rate swaps expiring in 2026

Gen Digital Q1 2026 Quarterly Financials
XBRL

Revenue

$1.2B

+25.8% YoY +1.6% QoQ

Net Income

$192M

+20.8% YoY +43.3% QoQ

Gross Margin

78.4%

-204bp YoY +19bp QoQ

Operating Margin

34.9%

-301bp YoY -98bp QoQ

Net Margin

15.5%

-64bp YoY +450bp QoQ

ROE

8.2%

+84bp YoY

Total Assets

$15.8B

+3.0% YoY

EPS (Diluted)

$0.31

+24.0% YoY +47.6% QoQ

Operating Cash Flow

$541M

+66.0% YoY +366.4% QoQ

Source: XBRL data from Gen Digital Q1 2026 10-Q filing on SEC EDGAR. All figures in USD.

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