Gen Digital Inc. Q4 FY2026 earnings call

• Fiscal year 2026 was seventh consecutive year of growth, with core cyber safety business delivering mid single digit rate growth and trust-based solutions as double-digit growth engine. • Q4 results exceeded guidance with record bookings and revenue, mid-teens EPS growth, and robust free cash flow. • In cyber safety, bookings grew 5% and revenue growth accelerated to 4%, with Norton 360 memberships surpassing half a billion in annualized bookings. • In trust-based solutions, bookings and revenue more than doubled with addition of financial wellness, LifeLock proposition strengthened, and Money Lion saw strong consumer demand. • Direct revenue and partner business grew, and paid customer base expanded. • Focus on profitability, with Q4 operating income up and operating margin in line, and continued investment in AI and growth initiatives.

In cyber safety segment, bookings grew 5% and revenues grew 3% pro forma, with 61% segment margin. In trust-based solutions segment, bookings and revenue more than doubled as reported, with 21% and 20% pro forma growth respectively, and 30% segment margin. Direct revenue grew 19% as reported and 7% pro forma, partner business grew 78% as reported and 20% pro forma. Paid customer base totaled 79 million.

• Full-year revenue expected in range of $5.325 billion to $5.425 billion, 8% to 10% pro forma growth. • Non-GAAP EPS expected in range of $2.85 to $2.95, mid-teens pro forma growth. • Q1 revenue expected in range of $1.3 billion to $1.325 billion, 8 to 10 percent pro forma growth. • Q1 non-GAAP EPS expected in range of 68 to 70 cents, mid-teens pro forma growth.

Q: Mita Marshall with Morgan Stanley asked about evolution of paid base engaging with financial wellness portfolio and growth margin impact of trusted access program.

A: On financial wellness, it's about connecting cyber safety and financial protections, with momentum seen; on trusted access program, it's about co-architecting with LLMs with no CapEx impact for GEN but monetization through membership.

Q: Robert Coolbreath with Evercore asked about mobile touchpoint penetration and direct billing.

A: There's opportunity to expand mobile footprint, with core cyber safety moving to mobile and LifeLock app engagement growing; on direct billing, BSR is high and moving to more direct billing on own rails.

Q: Joseph Gallo with Jefferies asked about trajectory in 2027 and Money Lion growth.

A: Trajectory to continue with core cyber safety mid-single-digit growth, trust-based solutions reimagined, and financial wellness healthy; Money Lion growth with first party and engine sides, growing faster than market.

Q: Hal Goach with B. Reilly Securities asked about guidance range and capital allocation.

A: Guidance range due to momentum in segments, capital allocation balanced across share repurchase, balance sheet, and M&A.

Q: Socket Kalia with Barclays asked about MoneyLion growth and operating margins.

A: MoneyLion to continue growing with financial protection, platform approach, and engine; operating margins expected to remain as is with investments and efficiencies.

Q: Richard Poland with Wells Fargo asked about margin shift and revenue synergy metrics.

A: No significant immediate margin change, and will continue to report progress on revenue synergy metrics.