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Cybersecurity firm Gen Digital's  Q2 revenue beats on strong demand; raises FY outlook

By Reuters News


Overview

  • Cybersecurity firm's fiscal Q2 revenue rose 12% yr/yr, beating analyst expectations

  • Adjusted EPS for fiscal Q2 rose 19% yr/yr

  • Company raised full-year revenue and EPS guidance


Outlook

  • Gen Digital sees Q3 FY27 revenue at $1.365 bln to $1.390 bln

  • Company expects Q3 FY27 EPS between $0.73 and $0.75

  • Gen Digital raises FY27 revenue outlook to $5.465 bln-$5.515 bln from $5.375 bln-$5.475 bln


Result Drivers

  • BOOKINGS GROWTH - Co said double-digit bookings growth and record high customer count drove Q2 performance, per CEO Vincent Pilette

  • PRODUCT INNOVATION - Co attributed results to innovation across brands and continued platform investment

  • STRONG CUSTOMER DEMAND - Co said strong customer demand and disciplined investment supported results, per CFO Natalie Derse


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$1.37 bln

$1.34 bln (7 Analysts)

Q2 EPS

$0.48

Q2 Operating Income

$507 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Gen Digital Inc. is $31.00, about 27.8% above its October 27 closing price of $24.25

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Oct 28 - Gen Digital raises annual revenue forecast on strong cybersecurity demand

  • Oct 28 - Cloud security startup Upwind raises $400 million, valued at $3.8 billion

  • Oct 28 - Researchers warn of surging law firm cyber attacks fueled by AI


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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