Gen Digital (NASDAQ:GEN) Issues Earnings Results

Gen Digital (NASDAQ:GEN) posted its quarterly earnings data on Thursday. The company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.69 by $0.02, FiscalAI reports. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. The firm had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.31 billion. During the same quarter last year, the business posted $0.64 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. Gen Digital updated its FY 2027 guidance to 2.870-2.970 EPS and its Q2 2027 guidance to 0.710-0.730 EPS.

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

• Q1 exceeded expectations: bookings and revenue rose 11% to $1.28 billion and $1.34 billion, respectively, while non-GAAP EPS increased 19% to $0.71.
• Gen raised its fiscal 2027 outlook to 9%–11% revenue growth and 14%–18% non-GAAP EPS growth, up from prior guidance of 8%–10% and mid-teens EPS growth.
• Trust-Based Solutions remained the primary growth engine, with bookings up 25% and revenue up 24%, driven by LifeLock, MoneyLion’s personal financial management products, and Engine Marketplace, which surpassed a $500 million annual revenue run rate.
• Cyber Safety delivered steady 4% growth with a 61% operating margin, while paid customers reached 81 million and cross-selling into higher-tier memberships continued to improve.
• Gross margin declined slightly to 82% because of mix, as faster-growing Engine Marketplace categories carry lower gross margins; management expects this dynamic to continue even though operating margins remained stable at 50%.

Gen Digital Stock Performance

NASDAQ GEN traded up $1.07 on Friday, hitting $29.17. 11,321,132 shares of the stock traded hands, compared to its average volume of 4,184,866. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.40 and a current ratio of 0.40. The business’s fifty day moving average is $25.96 and its two-hundred day moving average is $23.33. Gen Digital has a 12 month low of $17.78 and a 12 month high of $32.22. The firm has a market capitalization of $17.46 billion, a price-to-earnings ratio of 12.74 and a beta of 1.21.

Gen Digital Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 17th will be issued a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Monday, August 17th. Gen Digital’s dividend payout ratio is 31.65%.

Insider Buying and Selling at Gen Digital

In other news, Director John C. Chrystal purchased 3,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were purchased at an average price of $27.06 per share, with a total value of $81,180.00. Following the transaction, the director directly owned 31,419 shares of the company’s stock, valued at approximately $850,198.14. This represents a 10.56% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ondrej Vlcek sold 100,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $24.78, for a total value of $2,478,000.00. Following the transaction, the director owned 3,832,724 shares of the company’s stock, valued at $94,974,900.72. The trade was a 2.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Gen Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GEN. Larson Financial Group LLC raised its holdings in Gen Digital by 20.9% in the 3rd quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock worth $64,000 after acquiring an additional 390 shares during the last quarter. Vident Advisory LLC increased its holdings in shares of Gen Digital by 1.6% in the 3rd quarter. Vident Advisory LLC now owns 26,906 shares of the company’s stock worth $764,000 after purchasing an additional 428 shares in the last quarter. Captrust Financial Advisors increased its holdings in shares of Gen Digital by 1.7% in the 4th quarter. Captrust Financial Advisors now owns 29,545 shares of the company’s stock worth $803,000 after purchasing an additional 487 shares in the last quarter. Brown Brothers Harriman & Co. raised its stake in shares of Gen Digital by 47.8% in the third quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock worth $50,000 after purchasing an additional 568 shares during the last quarter. Finally, United Capital Financial Advisors LLC raised its stake in shares of Gen Digital by 9.0% in the third quarter. United Capital Financial Advisors LLC now owns 8,425 shares of the company’s stock worth $239,000 after purchasing an additional 693 shares during the last quarter. Institutional investors own 81.38% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on GEN. Wells Fargo & Company upped their target price on Gen Digital from $22.00 to $28.00 and gave the company an “equal weight” rating in a report on Friday. Barclays lifted their price target on Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a report on Friday. Jefferies Financial Group cut Gen Digital from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Weiss Ratings upgraded Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 15th. Finally, Wall Street Zen raised shares of Gen Digital from a “hold” rating to a “buy” rating in a report on Saturday. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, Gen Digital presently has an average rating of “Hold” and a consensus target price of $31.67.

More Gen Digital News

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

• Positive Sentiment: Quarterly results exceeded expectations. Gen Digital reported fiscal Q1 2027 adjusted EPS of $0.71, versus the $0.69 consensus estimate, while revenue increased 6.3% year over year to $1.34 billion, topping expectations of $1.31 billion. EPS also improved from $0.64 a year earlier. Gen Digital quarterly earnings report
• Positive Sentiment: Management raised fiscal 2027 targets. Gen Digital now expects full-year EPS of $2.87 to $2.97 and revenue of $5.4 billion to $5.5 billion, above analyst consensus of $2.83 EPS and approximately $5.4 billion in revenue. Second-quarter EPS guidance of $0.71 to $0.73 also exceeds the $0.70 consensus estimate. Reuters report on Gen Digital’s raised forecast
• Positive Sentiment: Cybersecurity demand remains supportive. The company cited strong demand for its family of digital-security products, double-digit bookings growth and increasing online threats powered by artificial intelligence. These trends support recurring revenue and Gen Digital’s growth outlook. Gen Digital fiscal Q1 2027 results release
• Positive Sentiment: Barclays raised its price target from $27 to $32 while maintaining an Equal Weight rating, suggesting additional potential upside based on the firm’s updated valuation. Benzinga analyst update
• Neutral Sentiment: Gen Digital declared a quarterly dividend of $0.125 per share. Investors of record on August 17 will receive payment on September 9. The dividend provides ongoing shareholder income, although the 1.7% yield is unlikely to be the primary catalyst for the stock.
• Negative Sentiment: Wells Fargo raised its price target from $22 to $28 but retained an Equal Weight rating. The new target remains below the stock’s current trading level, signaling valuation caution despite the improved earnings outlook. Benzinga analyst update

Gen Digital Company Profile

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.