Gen Digital (NASDAQ:GEN) Issues Earnings Results, Beats Estimates By $0.02 EPS

Gen Digital (NASDAQ:GEN) posted its quarterly earnings results on Thursday. The company reported $0.67 EPS for the quarter, topping analysts’ consensus estimates of $0.65 by $0.02, FiscalAI reports. Gen Digital had a return on equity of 56.78% and a net margin of 19.46%.The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.25 billion. During the same period in the previous year, the firm earned $0.59 EPS. The firm’s revenue was up 27.0% compared to the same quarter last year. Gen Digital updated its Q1 2027 guidance to 0.680-0.700 EPS and its FY 2027 guidance to 2.850-2.950 EPS.

Here are the key takeaways from Gen Digital’s conference call:

• Gen reported record FY2026 results with $5.0B+ revenue and record bookings of $5.1B, non-GAAP EPS of $2.56 (+15%), $1.5B free cash flow, and achieved 3x net leverage a year ahead of plan while raising FY2027 guidance to 8%–10% revenue growth and mid‑teens EPS growth.
• The company is shifting to a unified data + agentic AI platform (Gen Stack, Genie, Agent Trust Hub, Norton Neo) and partnerships with frontier model providers to become the consumer “trust layer” for AI agents, which management says should unlock new product and monetization paths.
• Trust-based solutions are the growth engine: MoneyLion exceeded expectations (≈40%+ revenue growth), LifeLock mobile revenue grew ~50% with NPS and retention gains, and Engine has tripled revenue in three years with new embeds (Equifax, Microsoft Copilot) and ~400M annual inquiries.
• Cyber Safety remains the foundation with mid-single-digit growth, ~79M customers, ~60% membership adoption and a 61% segment margin, but management highlights increasing AI-driven threats (deepfakes, agentic scams) that require continued investment.
• Balance sheet and capital allocation are strong: $1.5B FCF, ~$6B returned to shareholders historically, recent $200M buyback and $200M debt paydown, a $0.125 quarterly dividend, and $2.1B remaining buyback authorization.

Gen Digital Price Performance

Shares of GEN traded up $2.52 during mid-day trading on Friday, hitting $22.71. 17,306,295 shares of the stock were exchanged, compared to its average volume of 6,566,075. The company has a market cap of $13.76 billion, a PE ratio of 14.38 and a beta of 1.10. Gen Digital has a 52-week low of $17.78 and a 52-week high of $32.22. The firm has a 50-day moving average of $20.15 and a two-hundred day moving average of $23.90. The company has a debt-to-equity ratio of 3.50, a quick ratio of 0.47 and a current ratio of 0.47.

Gen Digital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Monday, May 18th will be issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Monday, May 18th. Gen Digital’s dividend payout ratio is 51.55%.

Key Headlines Impacting Gen Digital

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

• Positive Sentiment: Gen Digital beat quarterly expectations, with revenue and EPS both coming in above estimates, and said Trust-Based Solutions revenue surged sharply year over year. The results suggest improving growth momentum and stronger demand in cybersecurity. Article Title
• Positive Sentiment: The company raised fiscal 2027 guidance above Wall Street expectations, pointing to 8%–10% revenue growth and adjusted EPS of $2.85–$2.95, which reinforced optimism about future earnings power. Article Title
• Positive Sentiment: RBC lifted its price target on Gen Digital to $24 from $22, signaling slightly improved analyst confidence even though the firm kept a “sector perform” rating. Article Title
• Neutral Sentiment: Gen Digital announced a quarterly dividend of $0.125 per share, which may support income-focused investors but is not a major growth catalyst by itself.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Jefferies Financial Group cut Gen Digital from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Barclays boosted their price target on Gen Digital from $26.00 to $27.00 and gave the stock an “equal weight” rating in a report on Friday. Zacks Research raised Gen Digital from a “strong sell” rating to a “hold” rating in a report on Wednesday, February 18th. Royal Bank Of Canada boosted their price target on Gen Digital from $22.00 to $24.00 and gave the stock a “sector perform” rating in a report on Friday. Finally, Wells Fargo & Company began coverage on Gen Digital in a report on Tuesday, March 3rd. They set an “equal weight” rating and a $22.00 price objective on the stock. Two research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $31.29.

Institutional Trading of Gen Digital

Hedge funds have recently modified their holdings of the company. Geneos Wealth Management Inc. raised its holdings in shares of Gen Digital by 221.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock worth $46,000 after acquiring an additional 1,183 shares in the last quarter. MUFG Securities EMEA plc purchased a new stake in shares of Gen Digital during the 2nd quarter worth approximately $47,000. Brown Brothers Harriman & Co. raised its holdings in Gen Digital by 47.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock valued at $50,000 after buying an additional 568 shares during the period. Larson Financial Group LLC raised its holdings in Gen Digital by 20.9% during the 3rd quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock valued at $64,000 after buying an additional 390 shares during the period. Finally, Quarry LP purchased a new stake in Gen Digital during the 4th quarter valued at $90,000. 81.38% of the stock is owned by hedge funds and other institutional investors.

About Gen Digital

Gen Digital (NASDAQ: GEN) is a global cybersecurity company specializing in consumer- and small-business-focused security, privacy, and identity protection solutions. The company offers a suite of products designed to safeguard devices, networks, and personal information against malware, ransomware, phishing attacks and other digital threats. With a focus on user-friendly interfaces and cross-platform compatibility, Gen Digital develops antivirus software, VPN services, parental controls, password management tools, and comprehensive identity-theft monitoring services.

Gen Digital traces its origins to the consumer software division of Symantec Corporation, which was spun off in late 2019 under the NortonLifeLock name.