Gen Digital Inc. stock research
FY2026 Q2
Gen Digital (GEN) Gross Margin — Quarter Ended Oct 3, 2025
Revenue decreased compared to the prior quarter but increased year-over-year, while gross profit followed a similar directional trend. Cost of revenue remained nearly flat sequentially and grew substantially from the same quarter last year, leading to a gross margin that weakened on both comparisons.
Gross margin takeaway
Quarter ended Oct 3, 2025 · FY2026 Q2
Revenue decreased compared to the prior quarter but increased year-over-year, while gross profit followed a similar directional trend. Cost of revenue remained nearly flat sequentially and grew substantially from the same quarter last year, leading to a gross margin that weakened on both comparisons.
- The strongest observable driver was the faster growth of cost of revenue relative to revenue, especially on a year-over-year basis, where cost of revenue increased more than proportionally.
- Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, reflecting a decline in the profitability of core operations.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.2%
Gross profit
$954.0M
Revenue
$1.2B
Cost of revenue
$266.0M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-1.9 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 |
|---|---|---|---|---|
| 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% |
| Oct 3, 2025 | $1.2B | $954.0M | $266.0M | 78.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 4, 2025
-0.6 pts
Year-over-year change
Sep 27, 2024
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the faster growth of cost of revenue relative to revenue, especially on a year-over-year basis, where cost of revenue increased more than proportionally.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier, reflecting a decline in the profitability of core operations.
Monitor the expected synergy costs from the MoneyLion acquisition, as noted in the filing, for their potential influence on cost of revenue trends.