Gen Digital (NASDAQ:GEN) Announces FY 2027 Earnings Guidance

Gen Digital (NASDAQ:GEN) issued an update on its FY 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 2.970-2.970 for the period, compared to the consensus earnings per share estimate of 2.870. The company issued revenue guidance of $5.5 billion-$5.5 billion, compared to the consensus revenue estimate of $5.4 billion. Gen Digital also updated its Q2 2027 guidance to 0.730-0.730 EPS.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on GEN shares. Royal Bank Of Canada reduced their price objective on Gen Digital from $30.00 to $26.00 and set a “sector perform” rating for the company in a research note on Friday, September 25th. Wall Street Zen lowered Gen Digital from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Wells Fargo & Company raised their price objective on shares of Gen Digital from $22.00 to $28.00 and gave the stock an “equal weight” rating in a research note on Friday, August 7th. Barclays increased their price target on shares of Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a report on Friday, August 7th. Finally, Weiss Ratings upgraded shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Gen Digital presently has an average rating of “Hold” and an average target price of $30.80.

Gen Digital Stock Performance

Shares of NASDAQ:GEN opened at $20.85 on Wednesday. The business’s 50 day moving average price is $28.30 and its 200-day moving average price is $24.68. Gen Digital has a 1 year low of $17.78 and a 1 year high of $31.65. The firm has a market capitalization of $12.48 billion, a price-to-earnings ratio of 12.12, a price-to-earnings-growth ratio of 0.65 and a beta of 1.22. The company has a debt-to-equity ratio of 3.00, a current ratio of 0.47 and a quick ratio of 0.47.

Gen Digital (NASDAQ:GEN) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.02. Gen Digital had a net margin of 20.73% and a return on equity of 55.93%. The firm had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the prior year, the firm earned $0.64 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. Gen Digital has set its FY 2027 guidance at 2.870-2.970 EPS and its Q2 2027 guidance at 0.710-0.730 EPS. On average, equities research analysts forecast that Gen Digital will post 2.66 earnings per share for the current fiscal year.

Gen Digital Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 9th. Stockholders of record on Monday, August 17th were given a $0.1250 dividend. This represents a $0.50 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Monday, August 17th. Gen Digital’s dividend payout ratio (DPR) is 29.07%.

Insider Activity

In other news, COO Bryan Seuk Ko sold 28,248 shares of Gen Digital stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $30.67, for a total value of $866,366.16. Following the sale, the chief operating officer directly owned 744,262 shares of the company’s stock, valued at $22,826,515.54. The trade was a 3.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ondrej Vlcek sold 200,000 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total value of $6,000,000.00. Following the sale, the director owned 3,332,904 shares of the company’s stock, valued at $99,987,120. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 558,508 shares of company stock worth $16,356,093 over the last quarter. 9.70% of the stock is currently owned by corporate insiders.

More Gen Digital News

Here are the key news stories impacting Gen Digital this week:

• Positive Sentiment: Raised fiscal 2027 outlook: Gen Digital now expects fiscal 2027 EPS of $2.97, above the $2.87 analyst consensus, and revenue of approximately $5.5 billion versus the $5.4 billion consensus. The company also raised second-quarter fiscal 2027 guidance to $0.73 EPS and $1.4 billion in revenue, ahead of estimates of $0.70 and $1.3 billion, respectively. The stronger outlook could support investor confidence in the company’s underlying business.
• Positive Sentiment: Potentially oversold conditions: Gen Digital has lost 32.7% over four weeks, and technical analysis indicates the stock may be oversold. Analysts have also been revising earnings estimates higher, suggesting the recent selling could be nearing exhaustion and that a trend reversal is possible. Gen Digital Loses 32.7% in 4 Weeks
• Positive Sentiment: Management remains confident: Chief Executive Officer Vincent Pilette reportedly expects Gen Digital to reach the high end of its existing guidance, reinforcing the upgraded forecast.
• Neutral Sentiment: GoDaddy acquisition remains a major catalyst: Gen Digital reportedly submitted a preliminary offer to acquire GoDaddy and has addressed related acquisition rumors. The deal could expand Gen Digital’s digital-security and online-services footprint, but its ultimate effect depends on transaction terms, financing, regulatory review and execution. Gen Digital Submits Preliminary Offer for GoDaddy
• Negative Sentiment: Acquisition uncertainty has weighed on the stock: Reports indicate Gen Digital’s shares entered a sharp decline after the GoDaddy takeover bid. Investors appear concerned about the size, financing, potential leverage and integration risks associated with a large transaction, even though management has sought to address the rumors. Gen Digital CEO Addresses GoDaddy Rumors

About Gen Digital

Gen Digital Inc is a global cybersecurity and digital safety company that provides products and services designed to help consumers protect their devices, online privacy, personal information and digital identities. Its offerings include antivirus and malware protection, online privacy tools, identity theft protection, password management, scam and fraud protection, and utilities that support device performance and security.

The company markets its products under a portfolio of well-known brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner.