Gen Digital Inc. Delivers Strong Q3 Performance Boost
Gen Digital Inc. Showcases Robust Third Quarter Performance
Gen Digital Inc. (NASDAQ: GEN), a global trailblazer in the realm of Cyber Safety, has recently revealed captivating financial results for its third quarter. The company's dedication to empowering digital freedom shines through in its significant revenue growth and improved earnings.
Financial Highlights from Q3 Fiscal Year 2025
During the third quarter, Gen Digital experienced a remarkable 4% rise in revenues, totaling an impressive $986 million. The company achieved an operating income of $374 million, showcasing a notable 13% increase year-over-year. This translates to an operating margin of 38%, which also reflects a 3 percentage point uptick from the previous year. Furthermore, the diluted earnings per share (EPS) reached $0.26, marking an outstanding 18% increase compared to last year.
Operating Cash Flow
The third quarter also brought in strong cash flow from operations, amounting to $326 million, up 3% from last year. This robust operational performance indicates the company’s commitment and proficiency in executing its business strategy effectively.
Key Non-GAAP Results
In addition to its GAAP results, Gen Digital reported substantial Non-GAAP metrics, with total revenues also reflecting a 4% rise, amounting to $986 million. The bookings surged to $1,036 million, showcasing a 3% increase in US dollars and constant currency. Notably, the operating income saw a slight increase to $577 million, while the operating margin remained impressive at 58.5%.
Outlook and Guidance for Q4 FY25
Looking ahead, Gen Digital has issued guidance for Q4 FY25, estimating revenues in the range of $990 million to $1,005 million. The expected diluted EPS is projected to be between $0.57 and $0.59. Additionally, the company has raised its full-year revenue guidance to between $3,915 million to $3,930 million, further cementing shareholder confidence.
Dividend Information
Gen's Board of Directors has approved a cash dividend of $0.125 per share, set to be paid out on March 12 to all shareholders of record by February 17. This move reflects the company's commitment to returning value to its shareholders while maintaining solid growth potential.
Insights from Leadership
Vincent Pilette, CEO of Gen Digital, emphasized the growing need for comprehensive cybersecurity solutions: "Sophisticated scams and financial fraud are everywhere. People need comprehensive solutions to address the evolving threat landscape while also protecting their personal information. Millions of customers trust us to deliver practical solutions built with the best technology to address today's challenges and anticipate tomorrow's. We're dedicated to building upon that trust to not only protect their data and assets but to also help them manage and grow their digital and financial life."
Natalie Derse, CFO of Gen, reinforced this message, stating, "Our Q3 results highlight another quarter of solid execution, keeping us on track to achieve our 2025 plan and deliver long-term and profitable growth. This quarter's results are a testament to both the continued demand for comprehensive consumer Cyber Safety and the dedication of the entire Gen team. By making strategic investments and maintaining disciplined execution, we are well-positioned to sustain this momentum and drive future success."
Frequently Asked Questions
What were Gen Digital's revenue figures for Q3 2025?
Gen Digital reported revenues of $986 million for the third quarter of fiscal year 2025, marking a 4% increase.
What is the forecasted revenue range for Q4 FY25?
The company expects revenues to be between $990 million and $1,005 million for the fourth quarter of fiscal year 2025.
How much is the declared cash dividend?
Gen Digital has declared a quarterly cash dividend of $0.125 per share, payable on March 12, 2025.
What is the significance of the operating margin for Gen?
The operating margin stands at 38%, which indicates efficient management and profitability in its core business operations.
What did the leadership say about current market demands?
CEO Vincent Pilette highlighted the increasing need for comprehensive cybersecurity solutions amid rising scams and fraud.
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