Revenue growth reached 27.0% in 2026Q4, yet gross margins have structurally contracted from historical levels near 80% to 74.3%, suggesting potential dilution from new service offerings.
| Metric | Apr'26 | Mar'25 | Mar'24 | Mar'23 | Apr'22 | Apr'21 | Apr'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 5B | 3.94B | 3.8B | 3.32B | 2.8B | 2.55B | 2.49B | 4.73B | 4.85B | 4.02B | 3.6B | 6.51B | 6.68B | 6.91B | 6.73B | 6.19B | 5.99B | 6.15B | 5.87B | 5.2B | 4.14B | 2.58B | 1.87B | 1.41B | 1.07B | 853.55M | 745.73M | 633.9M | 578.4M | 472.2M |
| Revenue Growth % | 27.06% | 3.55% | 14.56% | 18.63% | 9.6% | 2.45% | -47.37% | -2.37% | 20.58% | 11.64% | -44.68% | -2.52% | -3.33% | 2.62% | 8.72% | 3.43% | -2.68% | 4.69% | 12.98% | 25.49% | 60.42% | 38.11% | 32.92% | 31.31% | 25.53% | 14.46% | 17.64% | 9.6% | 22.49% | 6.02% |
| Cost of Goods Sold | 1.29B | 776M | 731M | 589M | 408M | 362M | 393M | 1.05B | 1.03B | 853M | 615M | 1.15B | 1.15B | 1.18B | 1.08B | 1.04B | 1.1B | 1.23B | 1.22B | 1.22B | 981.87M | 403.21M | 327.55M | 250.12M | 194.61M | 91.88M | 89.26M | 66.8M | 60.7M | 60.3M |
| COGS % of Revenue | 25.9% | 19.72% | 19.24% | 17.76% | 14.59% | 14.19% | 15.78% | 22.19% | 21.3% | 21.22% | 17.08% | 17.72% | 17.21% | 17.01% | 16.08% | 16.88% | 18.46% | 19.95% | 20.77% | 23.38% | 23.7% | 15.61% | 17.52% | 17.78% | 18.16% | 10.76% | 11.97% | 10.54% | 10.49% | 12.77% |
| Gross Profit | 3.71B | 3.16B | 3.07B | 2.73B | 2.39B | 2.19B | 2.1B | 3.68B | 3.81B | 3.17B | 2.98B | 5.36B | 5.53B | 5.73B | 5.65B | 5.14B | 4.88B | 4.92B | 4.65B | 3.98B | 3.16B | 2.18B | 1.54B | 1.16B | 876.83M | 761.67M | 656.47M | 567.1M | 517.7M | 411.9M |
| Gross Margin % | 74.1% | 80.28% | 80.76% | 82.24% | 85.41% | 85.81% | 84.22% | 77.81% | 78.7% | 78.78% | 82.92% | 82.28% | 82.79% | 82.99% | 83.92% | 83.12% | 81.54% | 80.05% | 79.23% | 76.62% | 76.3% | 84.39% | 82.48% | 82.22% | 81.84% | 89.24% | 88.03% | 89.46% | 89.51% | 87.23% |
| Gross Profit Growth % | 17.28% | 2.93% | 12.5% | 14.24% | 9.09% | 4.39% | -43.03% | -3.49% | 20.47% | 6.06% | -44.26% | -3.11% | -3.56% | 1.47% | 9.78% | 5.43% | -0.87% | 5.78% | 16.83% | 26% | 45.05% | 41.3% | 33.34% | 31.93% | 15.12% | 16.03% | 15.76% | 9.54% | 25.69% | 9.75% |
| Operating Expenses | 1.55B | 1.55B | 1.96B | 1.52B | 1.38B | 1.29B | 1.74B | 3.06B | 3.35B | 2.99B | 2.39B | 3.95B | 4.07B | 4.48B | 4.51B | 4.14B | 3.82B | 3.83B | 3.88B | 3.39B | 2.56B | 1.31B | 1.02B | 799.53M | 848.36M | 594.13M | 507.94M | 459.6M | 417.3M | 376.9M |
| OpEx % of Revenue | 31% | 39.36% | 51.55% | 45.88% | 49.46% | 50.69% | 69.96% | 64.68% | 69.09% | 74.47% | 66.44% | 60.76% | 61.02% | 64.91% | 67% | 66.95% | 63.88% | 62.31% | 66.1% | 65.25% | 61.82% | 50.53% | 54.78% | 56.83% | 79.18% | 69.61% | 68.11% | 72.5% | 72.15% | 79.82% |
| Selling, General & Admin | 1.31B | 1.04B | 1.34B | 968M | 1.01B | 791M | 1.07B | 1.94B | 2.17B | 2.02B | 1.59B | 2.7B | 2.88B | 3.19B | 3.25B | 3.01B | 2.72B | 2.73B | 2.76B | 2.32B | 1.75B | 959.14M | 755.22M | 599.47M | 482.38M | 394.7M | 348.9M | 321.8M | 299.3M | 254.8M |
| SG&A % of Revenue | 26.3% | 26.33% | 35.18% | 29.18% | 36.27% | 31.01% | 42.93% | 41.01% | 44.8% | 50.34% | 44.08% | 41.52% | 43.14% | 46.12% | 48.31% | 48.66% | 45.43% | 44.37% | 47.03% | 44.71% | 42.14% | 37.14% | 40.38% | 42.61% | 45.02% | 46.24% | 46.79% | 50.77% | 51.75% | 53.96% |
| Research & Development | 409M | 329M | 332M | 313M | 253M | 267M | 328M | 913M | 957M | 823M | 748M | 1.14B | 1.04B | 1.01B | 969M | 862M | 857M | 879.7M | 895.24M | 866.88M | 664.63M | 332.27M | 252.28M | 197.27M | 163.98M | 126.67M | 108.42M | 101.6M | 91.3M | 88.9M |
| R&D % of Revenue | 8.18% | 8.36% | 8.74% | 9.44% | 9.05% | 10.47% | 13.17% | 19.3% | 19.75% | 20.48% | 20.78% | 17.58% | 15.55% | 14.65% | 14.4% | 13.93% | 14.32% | 14.3% | 15.24% | 16.67% | 16.04% | 12.86% | 13.49% | 14.02% | 15.3% | 14.84% | 14.54% | 16.03% | 15.78% | 18.83% |
| Other Operating Expenses | -174M | 184M | 290M | 241M | 116M | 235M | 345M | -64M | -5M | 25M | 57M | 11M | 45M | 27M | 289M | 270M | 247M | 223.56M | 225.13M | 201.5M | 151.02M | 13.81M | 16.87M | 2.79M | 202M | 72.75M | 50.61M | 36.2M | 26.7M | 33.2M |
| Operating Income | 2.15B | 1.61B | 1.11B | 1.21B | 1B | 896M | 355M | 380M | 49M | -100M | 457M | 1.15B | 1.18B | 1.12B | 1.08B | 880M | 933M | -6.47B | 602.28M | 519.74M | 273.96M | 819.27M | 513.59M | 341.51M | 8.04M | 109.6M | 148.52M | 107.5M | 100.4M | 35M |
| Operating Margin % | 43.1% | 40.91% | 29.21% | 36.36% | 35.94% | 35.12% | 14.26% | 8.03% | 1.01% | -2.49% | 12.69% | 17.66% | 17.72% | 16.26% | 16.03% | 14.22% | 15.59% | -105.2% | 10.25% | 10% | 6.61% | 31.72% | 27.46% | 24.27% | 0.75% | 12.84% | 19.92% | 16.96% | 17.36% | 7.41% |
| Operating Income Growth % | 33.85% | 45.05% | -7.96% | 20% | 12.17% | 152.39% | -6.58% | 675.51% | 149% | -121.88% | -60.23% | -2.87% | 5.34% | 4.08% | 22.61% | -5.68% | 114.42% | -1174.24% | 15.88% | 89.71% | -66.56% | 59.52% | 50.39% | 4147.13% | -92.66% | -26.21% | 38.16% | 7.07% | 186.86% | 269.08% |
| EBITDA | 2.65B | 2.03B | 1.59B | 1.53B | 1.17B | 1.07B | 716M | 629M | 689M | 430M | 756M | 1.59B | 1.67B | 1.76B | 1.74B | 1.55B | 1.77B | -5.63B | 1.43B | 1.33B | 897.58M | 951.22M | 630.81M | 437.24M | 280.91M | 230.44M | 199.13M | 143.7M | 127.1M | 68.2M |
| EBITDA Margin % | 52.96% | 51.56% | 41.97% | 46.28% | 41.67% | 41.87% | 28.75% | 13.3% | 14.22% | 10.7% | 21% | 24.4% | 25.07% | 25.5% | 25.84% | 25.11% | 29.57% | -91.59% | 24.28% | 25.6% | 21.66% | 36.83% | 33.73% | 31.08% | 26.22% | 27% | 26.7% | 22.67% | 21.97% | 14.44% |
| EBITDA Growth % | 30.51% | 27.21% | 3.91% | 31.76% | 9.08% | 49.16% | 13.83% | -8.71% | 60.23% | -43.12% | -52.39% | -5.14% | -4.94% | 1.27% | 11.9% | -12.2% | 131.42% | -494.88% | 7.15% | 48.31% | -5.64% | 50.79% | 44.27% | 55.65% | 21.9% | 15.72% | 38.58% | 13.06% | 86.36% | 274.73% |
| D&A (Non-Cash Add-back) | 493M | 419M | 485M | 329M | 160M | 172M | 361M | 249M | 640M | 530M | 299M | 439M | 491M | 638M | 660M | 674M | 837M | 837.36M | 824.11M | 811.44M | 623.62M | 131.96M | 117.23M | 95.73M | 272.87M | 120.84M | 50.61M | 36.2M | 26.7M | 33.2M |
| EBIT | 2.15B | 1.61B | 1.12B | 1.18B | 1.17B | 1.02B | 1.01B | 101M | 500M | -54M | 467M | 179M | 1.24B | 1.15B | 1.58B | 841M | 994M | -6.42B | 742M | 590.72M | 599.91M | 829.02M | 559.19M | 357.3M | 28.47M | 167.54M | 148.52M | 66.24M | 54.92M | 35M |
| Net Interest Income | 569M | -550M | -644M | -386M | -126M | -140M | -116M | -166M | -232M | -187M | -65M | -67M | -73M | -127M | -102M | -133M | -123M | -88M | 47.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 28M | 25M | 15M | 0 | 4M | 80M | 42M | 24M | 21M | 10M | 12M | 11M | 12M | 13M | 10M | 6M | 37.05M | 76.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -569M | 578M | 669M | 401M | 126M | 144M | 196M | 208M | 256M | 208M | 75M | 79M | 84M | 139M | 115M | 143M | 129M | 29.7M | 163.99M | 13.01M | 565.33M | 26.41M | 0 | 3.88M | 0 | 54.8M | 0 | 46.6M | 0 | 7.8M |
| Other Income/Expense | -644M | -581M | -663M | -423M | 37M | -24M | 464M | -265M | -275M | -435M | -201M | -53M | -284M | -160M | 366M | -286M | -68M | -7.63B | -58.29M | 111.88M | -239.39M | 38.86M | 28.64M | 22.12M | 37.46M | 31.18M | 108.77M | -24.33M | 11.7M | -4.7M |
| Pretax Income | 1.51B | 1.03B | 447M | 783M | 1.04B | 872M | 819M | 108M | 441M | -262M | 392M | 1.09B | 1.16B | 1.02B | 1.47B | 729M | 865M | -6.45B | 712.52M | 631.62M | 362.72M | 858.13M | 542.22M | 363.63M | 45.5M | 140.78M | 257.29M | 83.2M | 112.1M | 30.3M |
| Pretax Margin % | 30.22% | 26.15% | 11.76% | 23.61% | 37.27% | 34.18% | 32.89% | 2.28% | 9.1% | -6.52% | 10.89% | 16.79% | 17.32% | 14.81% | 21.84% | 11.78% | 14.45% | -104.95% | 12.13% | 12.15% | 8.75% | 33.22% | 28.99% | 25.85% | 4.25% | 16.49% | 34.5% | 13.13% | 19.38% | 6.42% |
| Income Tax | 538M | 386M | -160M | -551M | 206M | 176M | 241M | 92M | -710M | -26M | 1.21B | 215M | 258M | 258M | 298M | 105M | 112M | 221.63M | 248.67M | 227.24M | 205.87M | 321.97M | 171.6M | 115.19M | 73.65M | 76.84M | 87.14M | 33M | 27M | 4.3M |
| Effective Tax Rate % | 35.61% | 37.51% | -35.79% | -70.37% | 19.77% | 20.18% | 29.43% | 85.19% | -161% | 9.92% | 309.44% | 19.67% | 22.32% | 25.22% | 20.27% | 14.4% | 12.95% | -3.43% | 34.9% | 35.98% | 56.76% | 37.52% | 31.65% | 31.68% | 161.87% | 54.58% | 33.87% | 39.66% | 24.09% | 14.19% |
| Net Income | 973M | 643M | 607M | 1.33B | 836M | 554M | 3.89B | 31M | 1.16B | -106M | 2.49B | 878M | 898M | 765M | 1.17B | 597M | 714M | -6.73B | 463.85M | 404.38M | 156.85M | 536.16M | 370.62M | 248.44M | -28.15M | 63.94M | 170.15M | 50.2M | 85.1M | 26M |
| Net Margin % | 19.46% | 16.34% | 15.97% | 40.22% | 29.9% | 21.72% | 156.1% | 0.66% | 23.98% | -2.64% | 69.11% | 13.49% | 13.45% | 11.08% | 17.41% | 9.64% | 11.93% | -109.42% | 7.9% | 7.78% | 3.79% | 20.76% | 19.82% | 17.66% | -2.63% | 7.49% | 22.82% | 7.92% | 14.71% | 5.51% |
| Net Income Growth % | 51.32% | 5.93% | -54.5% | 59.57% | 50.9% | -85.75% | 12438.71% | -97.33% | 1196.23% | -104.26% | 183.37% | -2.23% | 17.39% | -34.73% | 96.31% | -16.39% | 110.61% | -1550.66% | 14.71% | 157.81% | -70.75% | 44.67% | 49.18% | 982.52% | -144.03% | -62.42% | 238.94% | -41.01% | 227.31% | 165.33% |
| Net Income (Continuing) | 973M | 643M | 607M | 1.33B | 836M | 696M | 578M | -110M | 964M | -236M | -821M | 109M | 898M | 765M | 1.17B | 593M | 753M | -6.68B | 463.85M | 404.38M | 156.85M | 536.16M | 370.62M | 248.44M | -28.15M | 63.94M | 170.15M | 50.2M | 85.09M | 26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -142M | 3.31B | 141M | 11M | 0 | 0 | 769M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 78M | 77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.57 | 1.03 | 0.95 | 2.16 | 1.41 | 0.92 | 0.90 | 0.05 | 1.74 | -0.17 | 3.71 | 1.26 | 1.28 | 1.08 | 1.57 | 0.76 | 0.87 | -8.10 | 0.52 | 0.41 | 0.15 | 0.73 | 0.52 | 0.36 | -0.05 | 0.12 | 0.34 | 0.11 | 0.18 | 0.06 |
| EPS Growth % | 52.43% | 8.42% | -56.02% | 53.19% | 53.26% | 2.22% | 1732.99% | -97.18% | 1123.53% | -104.58% | 194.44% | -1.56% | 18.52% | -31.21% | 106.58% | -12.64% | 110.74% | -1657.69% | 26.83% | 173.33% | -79.45% | 40.38% | 44.44% | 834.69% | -140.83% | -64.71% | 209.09% | -38.89% | 206.12% | 161.89% |
| EPS (Basic) | 1.59 | 1.04 | 0.95 | 2.20 | 1.44 | 0.94 | 0.94 | 0.05 | 1.74 | -0.17 | 3.71 | 1.27 | 1.29 | 1.09 | 1.58 | 0.77 | 0.88 | -8.10 | 0.53 | 0.42 | 0.16 | 0.81 | 0.61 | 0.43 | -0.05 | 0.12 | 0.37 | 0.11 | 0.19 | 0.06 |
| Diluted Shares Outstanding | 619M | 624M | 642M | 624M | 591M | 600M | 643M | 632M | 668M | 618M | 670M | 696M | 704M | 711M | 748M | 786M | 819M | 831M | 884.14M | 983.26M | 1.03B | 738.25M | 719.11M | 682.87M | 574.42M | 545.9M | 497.71M | 474.31M | 482.25M | 442.55M |
| Basic Shares Outstanding | 612M | 617M | 637M | 614M | 581M | 589M | 615M | 632M | 668M | 618M | 667.48M | 689M | 696M | 701M | 741M | 778M | 810M | 831M | 867.56M | 960.58M | 998.73M | 660.63M | 611.97M | 581.58M | 574.42M | 517.9M | 462.96M | 452.81M | 448.78M | 433.33M |
| Dividend Payout Ratio | 32.07% | 48.68% | 53.21% | 23.54% | 36.24% | 67.33% | 192.46% | 700% | 18.16% | - | 121.78% | 47.04% | 46.55% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Inorganic growth integration volatility
As reported in recent financial filings, Gen Digital achieved a 27.0% year-over-year revenue growth rate in 2026Q4, yet this trajectory appears heavily influenced by the Avast acquisition rather than purely organic demand, necessitating a cautious interpretation of the company's underlying subscription-based growth momentum and long-term scalability.
The sharp jump in quarterly revenue to $1.3B suggests that the company's roll-up strategy is successfully consolidating market share, but the lack of consistent organic growth visibility complicates the assessment of core product health. Investors should monitor whether the company can maintain this top-line pace once the inorganic contributions from recent mergers are fully annualized.
Based on the provided income statement data, gross margins have contracted from historical levels near 80% down to 74.3% in 2026Q4, suggesting that the integration of identity-focused services and insurance-like products may be structurally dilutive to the company's previously high-margin software-only business model.
This margin erosion appears to reflect the higher variable costs inherent in identity restoration and claims processing compared to traditional antivirus software. If this downward trend persists, it may indicate that the company's pivot toward an all-in-one security bundle is fundamentally altering its profitability profile.
According to the 2026Q4 income statement, Gen Digital demonstrated significant operating leverage with an operating margin of 63.4%, a notable improvement from the 35-40% range observed in prior periods, likely driven by the successful realization of back-office synergies following the Avast and Symantec consumer business integrations.
The dramatic reduction in SG&A expenses relative to revenue suggests that management has effectively streamlined the combined entity's cost structure. However, analysts should investigate whether this efficiency is sustainable or if it reflects temporary cost-cutting measures that could impact future customer acquisition capabilities.
As indicated by the quarterly data, stock-based compensation remains a material factor in the company's expense profile, with $53M to $66M in quarterly charges observed throughout 2026, which may obscure the true cash-generative capacity of the business when evaluating GAAP net income against operational performance.
The volatility in net income, particularly the spike to $512M in 2026Q4, appears to be influenced by non-operating items or accounting adjustments that warrant further investigation. Investors should focus on reconciling these GAAP figures with cash flow from operations to determine the underlying quality of the reported earnings.
While the company maintains a strong subscription base, the potential for Microsoft's Defender to capture additional market share poses a significant threat to Gen Digital's premium pricing power, as evidenced by the persistent need for high marketing spend to combat churn in an increasingly crowded security landscape.
The bear case centers on the risk that the 'identity-plus-security' bundle may not be sufficient to offset the commoditization of basic antivirus protection. If retention rates begin to falter, the company's reliance on aggressive customer acquisition could lead to a cycle of margin compression that the current valuation may not fully reflect.
Quick answers to the most common questions about buying GEN stock.
For fiscal year 2026, Gen Digital Inc. (GEN) reported total revenue of $5.00B. This represents a 958.9% increase compared to $472.2M in 1997.
Gen Digital Inc. (GEN) is profitable, generating $973.0M in net income for the fiscal year ending 2026 with a net profit margin of 19.5%.
Gen Digital Inc. (GEN) reported an operating income of $2.15B, resulting in an operating profit margin of 43.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Gen Digital Inc. (GEN) generated $3.71B in gross profit for the year, representing a gross profit margin of 74.1%. This demonstrates the company's core pricing power and production efficiency.