Gen Digital ramps up AI platform linking security, identity and financial wellness; raises FY26 guidance

Gen Digital ramps up AI platform to link security, identity and financial wellness

TEMPE, Ariz./PRAGUE, Feb 5 (Reuters) — Gen Digital Inc. is scaling an AI‑powered platform that integrates security, identity and financial wellness, saying the unified approach is central to meeting rising customer demand as cyber threats evolve. Management presents the platform as a single, personalized engine that delivers protection and contextual recommendations across products, aiming to make defenses more proactive and consumer interactions more seamless.

The company outlines a strategy to expand that trusted AI layer across its product set, using machine learning to tailor risk signals, authentication and finance‑focused alerts that reinforce user confidence. Gen frames the move as a response to an “AI‑driven” threat landscape where automated, adaptive attacks require correlated signals across identity and device vectors; the platform is intended to translate those signals into real‑time advice and automated protections for consumers and small businesses.

Gen also ties investment in the platform to its capital allocation priorities, saying substantial free cash flow funds both growth and shareholder returns while preserving operating discipline. Executives highlight that platform scale — combining telemetry from security, identity and financial services — is a differentiator for delivering contextualized recommendations and expanding secure financial wellness offerings.

Financial results and outlook

Gen reports strong third‑quarter fiscal 2026 performance, with GAAP revenue of $1.240 billion, up 26%, GAAP operating income of $433 million, up 16%, and GAAP diluted EPS of $0.31, up 22%. On a non‑GAAP basis, bookings rise 27% to $1.319 billion, revenue is $1.240 billion (up 26%), operating income is $629 million (up 9%) and diluted EPS is $0.64 (up 14%). Year‑to‑date operating cash flow reaches $1.066 billion and free cash flow $1.047 billion, each climbing more than 40%.

Capital deployment, guidance and dividend

Management says nearly $700 million is deployed to shareholders during the quarter and the board approves a regular quarterly cash dividend of $0.125 per common share. Gen raises FY26 non‑GAAP revenue guidance to $4.955–$4.975 billion (from $4.920–$4.970 billion) and non‑GAAP EPS to $2.54–$2.56 (from $2.51–$2.56), while forecasting Q4 non‑GAAP revenue of $1.24–$1.26 billion and EPS of $0.64–$0.66. The company frames the strengthened outlook as evidence of sustained demand for its combined offerings at scale.