Financial Data and Key Metrics Changes - The company generated just over $1.2 billion in revenue, up 25% year-over-year [8][20] - Non-GAAP operating margin was maintained above 50%, with non-GAAP EPS at $0.62, reflecting a 15% increase year-over-year [9][26] - Q2 bookings and revenue were over $1.2 billion, up 27% and 25% year-over-year, respectively [20] Business Line Data and Key Metrics Changes - The consumer fintech business, MoneyLion, grew by 50% [8] - The cybersafety segment saw bookings grow by 5% year-over-year, with a robust operating margin of 61% [9][21] - The trust-based solution segment's revenue increased over 25% on a pro forma basis, with an operating margin of 30% [11][22] Market Data and Key Metrics Changes - The company serves over 77 million customers, with a sequential increase of approximately 1 million [24] - The employee benefits channel continues to grow in double digits, reflecting strong demand for bundled solutions [21] Company Strategy and Development Direction - The company aims to be a leader in consumer cybersafety and fintech, focusing on secure financial wellness [8][14] - There is a strategic emphasis on integrating AI across products and enhancing customer engagement through personalized offerings [15][16] - The company is raising its annual guidance to $4.92 to $4.97 billion, reflecting strong momentum and a commitment to innovation [17][29] Management's Comments on Operating Environment and Future Outlook - Management noted the increasing complexity of the threat landscape and the importance of consumer trust in financial wellness [6][7] - The company has not observed significant changes in consumer behavior despite economic fluctuations, indicating resilience in its subscription and security revenue streams [39][40] Other Important Information - The company is focused on disciplined growth investments in AI, data, and platform architecture to enhance customer value [9][15] - The integration of MoneyLion is progressing smoothly, unlocking revenue synergies and enhancing the customer experience [12][41] Q&A Session Summary Question: What is the view on the macro environment and consumer health? - Management indicated that there is no significant correlation between economic downturns and subscription revenue, and consumer demand for financial wellness remains strong [37][39] Question: Can you discuss the trajectory of partner revenue? - Management expects partner revenue to continue growing faster than direct revenue, driven by embedded services and marketplace expansion [49][50] Question: What are the keys to momentum in upselling Norton 360 memberships? - The introduction of new features like Norton Genie and Norton Money is enhancing customer engagement and driving upsell opportunities [58][60] Question: How does the company view the profitability of the MoneyLion business? - Management highlighted that MoneyLion's operating margin is currently around 20%, with a focus on balancing subscription and transaction-based revenue [72][73] Question: What drove the sequential growth in cybersafety customers? - Management attributed the growth to increased engagement, improved retention, and effective customer acquisition strategies [61][62]

Financial Data and Key Metrics Changes - The company generated just over $1.2 billion in revenue, up 25% year-over-year [8] - Non-GAAP operating margin maintained above 50%, with non-GAAP EPS of $0.62, up 15% year-over-year [9][26] - Q2 bookings and revenue were over $1.2 billion, up 27% and 25% year-over-year, respectively [20] Business Line Data and Key Metrics Changes - The consumer fintech business, MoneyLion, grew by 50% [8] - Cybersafety segment bookings grew 5% year-over-year, with a robust operating margin of 61% [9] - Trust-based solutions segment revenue grew over 25% on a pro forma basis, with an operating margin of 30% [11] Market Data and Key Metrics Changes - The company serves over 77 million customers, up approximately 1 million sequentially [24] - The employee benefits channel continues to grow double digits, with a robust pipeline ahead of the annual enrollment period [21] Company Strategy and Development Direction - The company aims to be a global leader in consumer cybersafety and fintech, focusing on secure financial wellness [8] - The integration of MoneyLion is expected to unlock revenue synergies by unifying data systems across cybersafety and trust-based solutions [12] - The strategic direction includes expanding customer cohorts and enhancing user experience through technology leadership [11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers face a rapidly evolving threat landscape, with cybercrimes projected to exceed $15 billion annually in the U.S. [7] - The company raised its annual guidance to $95 million at the midpoint, reflecting over 25% growth on a reported basis [16] - Management expressed confidence in the resilience of the business, supported by a highly recurring revenue base and strong customer retention [28] Other Important Information - The company paid down $160 million of debt at the end of the quarter, with net leverage at 3.2 times EBITDA [27] - A regular quarterly cash dividend of 12.5 cents per common share was approved for Q3 fiscal 2026 [28] Q&A Session Summary Question: View of the macro environment and health of the consumer - Management indicated that there is no significant correlation between economic downturns and subscription or security revenue streams, with strong growth in secure financial wellness offerings [38] Question: Frequency of member interaction with LifeLock products - Management discussed the integration of MoneyLion and the focus on revenue synergies, particularly through the Norton Money platform and curated marketplaces [41] Question: Trajectory of partner revenue - Management expects partner revenue to continue growing faster than direct revenue, driven by the embedded services in partner organizations [50] Question: Free cash flow trajectory and capital allocation - Management confirmed strong free cash flow generation and a balanced approach to capital allocation between debt paydown and share repurchases [53] Question: Momentum in upselling customers into higher-tier Norton 360 memberships - Management highlighted the engagement of Norton 360 and the introduction of new features like Norton Money to drive upselling [60] Question: Growth trends in the core cybersafety business - Management noted that revenue reflects trailing bookings and emphasized the importance of innovation and customer engagement in driving future growth [86]

Financial Data and Key Metrics Changes - The company generated just over $1.2 billion in revenue, up 25% year-over-year [6] - Non-GAAP operating margin was maintained above 50%, with non-GAAP EPS of $0.62, up 15% year-over-year [8][25] - Q2 bookings and revenue were over $1.2 billion, up 27% and 25% year-over-year, respectively [19] - Q2 net income was $387 million, with diluted EPS of 62 cents, marking the eighth consecutive quarter of achieving or exceeding the 12% to 15% EPS growth target [25] Business Line Data and Key Metrics Changes - The consumer fintech business, MoneyLion, grew by 50% [6] - In the cybersafety segment, bookings grew by 5% year-over-year, with a robust operating margin of 61% [8] - The trust-based solution segment saw revenue growth of over 25% on a pro forma basis, with an operating margin of 30% [10] Market Data and Key Metrics Changes - The company serves over 77 million customers, up approximately 1 million sequentially [23] - The employee benefits channel continues to grow in double digits, with a robust pipeline ahead of the annual enrollment period [20] Company Strategy and Development Direction - The company aims to be a global leader in consumer cybersafety and fintech, focusing on secure financial wellness [6] - There is a strategic emphasis on integrating AI across all operations, enhancing customer experience and operational efficiency [14][16] - The company is expanding its ecosystem by embedding financial wellness features into its existing products [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted a complex threat landscape with increasing cyber threats, emphasizing the need for robust security solutions [5][34] - The company raised its annual guidance to $95 million at the midpoint, reflecting strong momentum and a resilient business model [16][27] - Management expressed confidence in the continued demand for financial wellness solutions, regardless of economic fluctuations [36] Other Important Information - The company is committed to a balanced capital allocation strategy, focusing on debt paydown and share repurchases [48] - The integration of MoneyLion is progressing smoothly, unlocking revenue synergies and enhancing customer offerings [11][76] Q&A Session Summary Question: View of the macro environment and consumer health - Management indicated that there has been no significant correlation between economic downturns and subscription or security revenue streams, with strong growth in personal financial management offerings [32][35] Question: Frequency of member interaction with LifeLock products - Management highlighted the integration of MoneyLion and LifeLock, focusing on enhancing the customer experience through curated marketplaces and embedded financial tools [38][39] Question: Trajectory of partner revenue - Management expects partner revenue to continue growing faster than direct revenue, driven by the integration of services and marketplace expansion [44] Question: Free cash flow trajectory and capital allocation - Management confirmed strong free cash flow generation and a disciplined approach to capital allocation, balancing debt paydown and share repurchases [46][48] Question: Keys to momentum in upselling Norton 360 memberships - Management noted increased engagement through new features like Norton Genie and the launch of Norton Money, which are driving upsell opportunities [54][55] Question: Growth trends in the core cybersafety business - Management acknowledged slight differences in growth rates but emphasized the potential for improved revenue growth driven by customer acquisition and innovation [78][80]

Financial Performance Highlights - Q2 FY26 revenue reached $1220 million, a 25% year-over-year increase[40, 42] - Q2 FY26 bookings totaled $1222 million, up 27% year-over-year[40] - Q2 FY26 operating income was $623 million, a 10% year-over-year increase[40] - Q2 FY26 EPS reached $062, a 15% year-over-year increase[40, 43] Segment Performance - Cyber Safety Platform revenue was $814 million, a 3% year-over-year increase, with an operating margin of 61%[46] - Trust-Based Solutions revenue was $406 million, a 119% year-over-year increase, with an operating margin of 30%[48] Revenue Streams - Direct revenue reached $1010 million, a 17% year-over-year increase[50] - Partner revenue reached $210 million, an 88% year-over-year increase[50] Customer Base - The company has 77 million+ paid customers[6, 52] Financial Outlook - FY26 revenue guidance is raised to $492 - $497 billion, reflecting a 25%-26% year-over-year growth[57] - FY26 EPS guidance is raised to $251 - $256, reflecting a 13%-15% year-over-year growth[57]

Financial Performance - Q2 FY26 revenue reached $1,220 million, representing a 25% increase year-over-year[5] - Operating income for Q2 FY26 was $438 million, up 9% compared to the previous year[5] - Year-to-date operating cash flow increased by 24% to $525 million[5] - Bookings for Q2 FY26 totaled $1,222 million, reflecting a 27% growth[5] - Net income for the three months ended October 3, 2025, was $134 million, a decrease of 16.8% compared to $161 million for the same period in 2024[20] - Total net revenues for the three months ended October 3, 2025, reached $1,220 million, representing a 25.3% increase from $974 million in the prior year[26] - Operating income for the three months ended October 3, 2025, was $438 million, up 8.9% from $402 million in the same period last year[23] - Total bookings for the three months ended October 3, 2025, were $1,222 million, compared to $964 million for the same period in 2024, indicating a 26.8% increase[26] - Free cash flow for the six months ended October 3, 2025, was $512 million, compared to $418 million for the same period in 2024, marking a 22.5% increase[22] - Operating margin for the three months ended October 3, 2025, was 35.9%, down from 41.3% in the same period last year[23] - Non-GAAP net income for the three months ended October 3, 2025, was $387 million, compared to $336 million for the same period in 2024, an increase of 15.2%[22] - The ending cash, cash equivalents, and restricted cash as of October 3, 2025, was $701 million, a decrease from $737 million at the end of the previous year[20] Guidance and Projections - The company raised its FY26 revenue guidance to a range of $4.92 billion to $4.97 billion, up from the previous guidance of $4.8 billion to $4.9 billion[10] - Q3 FY26 revenue is expected to be between $1.22 billion and $1.24 billion[10] - Q3 FY26 EPS is projected to be in the range of $0.62 to $0.64[10] Customer Metrics - The number of total paid customers increased to 77 million as of October 3, 2025, from 67 million a year earlier, reflecting a growth of 14.9%[26] - Paid customers are defined as active users with an active paid subscription or at least one revenue-generating transaction, excluding free trial users[47] Dividends and Shareholder Returns - The company announced a quarterly cash dividend of $0.125 per common share, payable on December 10, 2025[6] Strategic Initiatives - Gen Digital serves nearly 500 million users across more than 150 countries, focusing on financial empowerment and cyber safety[8] - The CEO emphasized the development of an AI-powered platform integrating security, privacy, identity, and financial wellness[3] Revenue Streams and Definitions - The company defines bookings as customer orders expected to generate future net revenues, reflecting customer demand for its products and services[41] - Free cash flow is defined as cash flows from operating activities less purchases of property and equipment, and is not a measure of financial condition under GAAP[42] - The company excludes gains or losses on extinguishment of debt from non-GAAP results as they do not reflect ongoing business performance[36] - The company records gains or losses on the sale of properties but excludes them from ongoing business results[38] - The non-GAAP tax rate excludes discrete impacts of tax legislation changes and other significant items to facilitate better evaluation of operating performance[39] Product Offerings - The company’s Cyber Safety Platform includes security and privacy products aimed at providing superior threat protection in the digital world[44] - Trust-Based Solutions encompass identity, reputation, and financial wellness products, contributing to direct revenue through e-commerce and financial transactions[45] - Partner revenue includes revenue from strategic partnerships and channels, reflecting the company's diverse revenue generation strategies[46]

Core Insights - Gen Digital raised its annual revenue forecast for the second consecutive quarter, driven by strong demand for its cybersecurity products and the acquisition of fintech firm MoneyLion [1] Group 1: Revenue Forecast - The company has increased its revenue forecast, indicating positive growth trends [1] - This marks the second consecutive quarter of raised revenue expectations, suggesting sustained performance [1] Group 2: Demand and Acquisition - Robust demand for cybersecurity products has significantly contributed to the revenue growth [1] - The acquisition of MoneyLion, a fintech firm, is a strategic move that supports the company's growth objectives [1]

Core Insights - Gen Digital Inc. reported record results for Q2 FY2026, highlighting the strength of its subscription model and expansion into secure financial wellness [2][5] - The company is developing an AI-powered platform that integrates security, privacy, identity, and financial wellness, creating a unique market advantage [2] - Consistent execution is demonstrated by eight consecutive quarters of EPS growth at or above the target of 12-15% [2] Financial Highlights - Q2 FY2026 revenue reached $1,220 million, a 25% increase year-over-year [7] - Operating income for Q2 was $438 million, up 9% from the previous year [7] - Diluted EPS for Q2 was $0.21, down 17% compared to the same quarter last year [7] - Year-to-date operating cash flow increased by 24% to $525 million [7] - Bookings for Q2 were $1,222 million, reflecting a 27% growth [7] Guidance and Dividends - The company raised its non-GAAP revenue guidance for FY2026 to a range of $4.92 billion to $4.97 billion, up from the previous guidance of $4.8 billion to $4.9 billion [7] - Q3 FY2026 revenue is expected to be between $1.22 billion and $1.24 billion, with EPS guidance in the range of $0.62 to $0.64 [7] - A quarterly cash dividend of $0.125 per share has been approved, to be paid on December 10, 2025 [3] Operational Metrics - The Cyber Safety Platform generated $814 million in revenue, while Trust-Based Solutions contributed $406 million [14] - Total paid customers increased to 77 million from 67 million year-over-year [15]

Core Insights - Gen Digital Inc. is a global leader in cybersecurity and digital protection, offering advanced technology solutions through brands like Norton, Avast, LifeLock, and MoneyLion [1] - The company serves nearly 500 million users worldwide and has a market capitalization of $16.19 billion [2] Stock Performance - Gen Digital's stock has declined by 7% over the past 52 weeks and gained 1.4% over the past six months, reaching a 52-week high of $32.22 in August, but is down 18.4% from that peak [3] - The stock has underperformed compared to the S&P 500 Index, which has gained 19.6% over the past 52 weeks and 20.5% over the past six months, as well as the Technology Select Sector SPDR Fund, which is up 34.8% over the same period [4] Financial Performance - For Q1 FY2026, Gen Digital reported net revenues of $1.26 billion, a 30.3% year-over-year increase, and total bookings of $1.20 billion, up 31.7% from the prior year [5] - The company raised its fiscal 2026 revenue guidance from $4.70 billion - $4.80 billion to $4.80 billion - $4.90 billion based on solid results [5] Analyst Expectations - Wall Street analysts project a 12.9% year-over-year increase in EPS for fiscal year 2026, expecting it to reach $2.27 on a diluted basis, with a further increase of 15.4% to $2.62 in fiscal 2027 [6] - For Q2 FY2026, EPS is projected to increase by 12.2% annually to $0.55, although the company has missed consensus EPS estimates in three of the four trailing quarters [7]

Core Insights - A significant portion of Americans plans to spend the same or more on holiday gifts this year, with 78% expecting to exceed last year's spending, averaging over $2,000 [2][7] - Financial stress is prevalent, with one in four Americans feeling pressured to overspend, leading to increased borrowing and extra work [2][4] Spending Behavior - 84% of Americans intend to use credit cards for holiday purchases, and 30% plan to utilize Buy Now, Pay Later (BNPL) services [3][7] - Nearly half (46%) of consumers are unaware that BNPL can impact their credit scores, highlighting a gap in financial literacy [3][7] Demographic Insights - Younger generations (ages 18-44) report higher levels of spending pressure compared to older generations, with 36% of younger shoppers indicating high stress levels [7] - In contrast, 53% of shoppers aged 55 and above feel little to no pressure regarding holiday spending [7] Emotional Impact - Anxiety is the most common emotion experienced by Americans after reviewing their bank statements post-holidays, with 36% reporting this feeling [7] - One in three Americans regrets holiday purchases that strain their finances, indicating a disconnect between spending and financial well-being [7] Recommendations for Consumers - MoneyLion advises consumers to create shopping lists and budgets to avoid impulse purchases and manage spending effectively [6][13] - Utilizing budgeting tools and cashback apps can help consumers stay aware of their expenses and find deals [13]

Core Insights - Norton has announced the global expansion of its AI-powered Scam Protection across all Norton 360 and Norton mobile plans, enhancing its commitment to proactive cyber safety for users worldwide [1][2][3] Group 1: Product Features and Enhancements - Norton Scam Protection now provides advanced, real-time defense against scams across various platforms including web, email, SMS, videos, and phone calls, reinforcing its universal application [1][3] - The premium tier, Norton Scam Protection Pro, is being extended to all Norton 360 Advanced plans globally, introducing features like Safe Email and Safe Call to enhance user protection [5] - The free Norton Private Browser offers built-in Safe Web Scam Protection, aimed at blocking phishing websites and improving online shopping safety [4] Group 2: Market Context and Threat Landscape - Social engineering threats, including scams, account for over 80% of cyber threats observed globally in the first three quarters of the year, highlighting the critical need for enhanced scam protection [2] - Gen Threat Labs reports an average of 110 social engineering-related attempts blocked every second, indicating the scale of the threat and the effectiveness of Norton's solutions [2] Group 3: Strategic Vision - The Chief Product Officer of Gen emphasized that the expansion of Norton Scam Protection aims to raise the standard for online safety, ensuring that users everywhere have equal access to protection against sophisticated scams [3]