Gen Digital Inc. stock research
FY2026 Q3
Gen Digital (GEN) Gross Margin — Quarter Ended Jan 2, 2026
Revenue and gross profit were higher compared to the same quarter last year, but cost of revenue grew more rapidly, resulting in a lower gross margin. Sequentially, revenue was stable while gross profit increased slightly, leading to a marginal improvement in gross margin.
Gross margin takeaway
Quarter ended Jan 2, 2026 · FY2026 Q3
Revenue and gross profit were higher compared to the same quarter last year, but cost of revenue grew more rapidly, resulting in a lower gross margin. Sequentially, revenue was stable while gross profit increased slightly, leading to a marginal improvement in gross margin.
- The relative growth of cost of revenue compared to revenue is the most observable factor, with the year-over-year margin decline reflecting a faster cost increase.
- Compared to the immediately preceding quarter, gross margin was slightly higher as revenue held steady and gross profit increased modestly. Versus the same quarter one year earlier, gross margin was lower, as cost of revenue grew at a faster pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.4%
Gross profit
$972.0M
Revenue
$1.2B
Cost of revenue
$268.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-2.0 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 |
|---|---|---|---|---|
| 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% |
| Jan 2, 2026 | $1.2B | $972.0M | $268.0M | 78.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 3, 2025
+0.2 pts
Year-over-year change
Dec 27, 2024
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relative growth of cost of revenue compared to revenue is the most observable factor, with the year-over-year margin decline reflecting a faster cost increase.
Compared to the immediately preceding quarter, gross margin was slightly higher as revenue held steady and gross profit increased modestly. Versus the same quarter one year earlier, gross margin was lower, as cost of revenue grew at a faster pace than revenue.
Monitor the trend of cost of revenue growth, particularly in light of acquisition-related synergy costs noted in the filing.