- Revenue Growth: Q1 FY2026 revenue hit $1.26 billion (up 30% YoY), driven by 45% pro forma growth in MoneyLion and a 9% boost from an extra fiscal week.
- Cyber Safety Platform Strength: Generated 11% reported growth (4% normalized), contributing 2/3 of revenue, with a 61% operating margin exceeding targets.
- Trust-Based Solutions Surge: Revenue grew over 100% reported and 25% normalized, with LifeLock’s customer satisfaction rising due to enhanced scam tools and financial monitoring.
- MoneyLion Integration Success: Achieved 45% pro forma revenue growth, aided by AI-powered financial marketplace and partnerships, with a new checkout feature driving momentum.
- Guidance Raised: FY2026 revenue guidance lifted to $4.8–4.9 billion (up from $4.7–4.8B), with non-GAAP EPS projected at $2.49–2.56 (+12–15% YoY).
Cyber Safety Remains a Steady Performer
Gen's Cyber Safety Platform, comprising two-thirds of Q1 revenue, grew 11% reported and 4% organically. This segment benefited from strong demand for comprehensive memberships, particularly Norton 360 with enhanced scam protection. The segment achieved an impressive 61% operating margin, exceeding the 60% target. This performance highlights the platform's continued relevance in an increasingly threat-ridden digital landscape.
Trust-Based Solutions Accelerates, MoneyLion Integration Fuels Growth
Trust-Based Solutions, representing one-third of revenue, experienced explosive growth, exceeding 100% reported and 25% organically. LifeLock continues to be a steady contributor, with customer satisfaction boosted by features like personal data exposure scam tools and financial monitoring. The integration of MoneyLion into Gen's infrastructure is proving successful, delivering a remarkable 45% pro forma revenue growth for the platform. Its AI-powered financial marketplace, driven by partnerships and a new checkout feature, achieved its third consecutive quarter of growth exceeding 50%.
AI-First Strategy Positions Gen for Long-Term Success
Gen is making significant strides in AI innovation, evident in the launch of Norton Neo, an AI-native browser. This, coupled with the automated renewal engine and AI-powered customer support platform, is driving operational efficiency and enhancing customer experience. This focus on AI positions Gen to capitalize on the evolving technological landscape and strengthens its competitive advantage.
Valuation Metrics Reflect Market's Optimism
While the company remains focused on achieving long-term, sustainable growth, the market is clearly optimistic about Gen's prospects. The current P/E ratio of 29.17 suggests investors are willing to pay a premium for future earnings growth. The P/S ratio of 4.76 also reflects a belief in the company's ability to continue driving revenue expansion.