Gen Digital Inc. stock research
FY2026 Q1
Gen Digital (GEN) Gross Margin — Quarter Ended Jul 4, 2025
Revenue and gross profit increased compared with both the prior quarter and the same quarter last year, but gross margin weakened slightly as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Jul 4, 2025 · FY2026 Q1
Revenue and gross profit increased compared with both the prior quarter and the same quarter last year, but gross margin weakened slightly as cost of revenue grew at a faster pace than revenue.
- The strongest observable margin driver is the proportion of cost of revenue relative to revenue, which rose compared with both the prior quarter and the year-ago quarter, leading to a lower gross margin.
- Gross margin is lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit are higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.8%
Gross profit
$990.0M
Revenue
$1.3B
Cost of revenue
$267.0M
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 27, 2024 | $974.0M | $780.0M | $194.0M | 80.1% |
| Dec 27, 2024 | $986.0M | $793.0M | $193.0M | 80.4% |
| Mar 28, 2025 | $1.0B | $811.0M | $199.0M | 80.3% |
| Jul 4, 2025 | $1.3B | $990.0M | $267.0M | 78.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 28, 2025
-1.5 pts
Year-over-year change
Jun 28, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the proportion of cost of revenue relative to revenue, which rose compared with both the prior quarter and the year-ago quarter, leading to a lower gross margin.
Gross margin is lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit are higher in both comparisons.
Monitor the trend in cost of revenue as a percentage of revenue, as it has increased this quarter relative to prior periods.