Gen Digital Inc. Contingent Value Rights Q3 FY2026 earnings call

AI and Threat Landscape

• Most dangerous attacks are embedded in everyday digital experiences, like fake ads, which now represent over 40% of consumer cyber threats. AI has compressed attack life cycles, requiring Gen's platform to analyze real-time signals across security, identity, devices, platforms, and financial activities.

Cyber Safety and Financial Wellness Convergence

• Identity threats and financial risks are interconnected. Gen's portfolio has nearly 100 million active financial accounts monitored over 500 million protected endpoints. MoneyLion is evolving into an always-on financial hub, and later this year, MoneyOne, a new subscription combining MoneyLion with scam and identity protection, will launch.

Unified AI-Driven Platform

• Gen's platform leverages AI to retrain defenses continuously, detect scams earlier, and adapt faster. The agent trust hub and Norton NEO safe AI browser were introduced. The marketplace engine processed a record number of inquiries, and there's an expanded partnership with Equifax.

In the cyber safety segment, bookings grew 5% and revenue grew 3%. The trust-based solutions segment, on a pro forma basis, bookings and revenue grew 23% and 22% respectively, and more than doubled on a reported basis. MoneyLion had nearly 40% revenue growth in Q3. Cyber safety direct customers were up half a million, and the paid customer base totaled over 78 million.

Fiscal Year 2026 Guidance

• Raised full-year revenue guidance to $4.955 billion to $4.975 billion, up from prior expectations. Non-GAAP EPS expected to be $2.54 to $2.56.

Q4 Guidance

• Expected Q4 non-GAAP revenue in $1.24 billion to $1.26 billion range and EPS in $0.64 to $0.66 range. Assumes high single-digit pro forma growth and disciplined cost management while funding long-term growth initiatives.

Q: Roger Boyd with UBS asked about consumer AI and Gen's role in helping consumers, and about MoneyLion's shift to subscriptions.

A: Vincent Pilette discussed the AI revolution, the agent trust hub, and MoneyLion's growth with balanced consumer and engine sides.

Q: Meta Marshall with Morgan Stanley inquired about the Equifax partnership and trends in MoneyLion marketplace products.

A: Vincent Pilette explained the Equifax partnership benefits and that trends in MoneyLion marketplace continued as embedded in guidance.

Q: Matt Hedberg with RBC asked about guardrails for fiscal '27 and MoneyLion synergies.

A: Natalie Derse mentioned long-term growth architecture, and Vincent Pilette talked about synergies across the cohort from cyber safety and financial wellness needs.

Q: Saket Kalia with Barclays asked about retention and capital return guardrails.

A: Vincent Pilette spoke about customer experience and retention, and Natalie Derse discussed balanced capital deployment across dividend, debt paydown, and share buyback.

Q: Robert Coolbrith with Evercore asked about sales/marketing, R&D, and AI use.

A: Natalie Derse talked about sales/marketing investments for returns, and Vincent Pilette discussed AI-native portfolio and AI-first functions in R&D, support, and marketing.

Q: Joseph Gallo with Jefferies asked about ASP uplift and Q4 seasonality.

A: Vincent Pilette noted the need for safety in AI economy and Natalie Derse said guidance accounts for current factors without specific macro weave-in