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

Key Points

• Gen Digital beat quarterly expectations, reporting adjusted EPS of $0.74 versus the $0.72 consensus and revenue of $1.37 billion versus $1.34 billion. Revenue rose 12%, bookings increased 10%, and free cash flow reached $323 million.
• Management raised its fiscal 2027 outlook to revenue of $5.465–$5.515 billion and non-GAAP EPS of $2.93–$2.98. Trust-Based Solutions revenue grew 26%, while partner revenue accelerated 40% to $295 million.
• The company maintains a quarterly dividend of $0.125 per share, or $0.50 annualized, representing a 2.1% yield; analysts remain cautious, with a consensus “Hold” rating and a $30.25 target price.

Gen Digital (NASDAQ:GEN - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.72 by $0.02, FiscalAI reports. The company had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $1.34 billion. Gen Digital had a return on equity of 55.93% and a net margin of 20.73%.

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

• Gen raised its fiscal 2027 outlook, now expecting revenue of $5.465–$5.515 billion, up 10%–11%, and non-GAAP EPS of $2.93–$2.98, up 16%–18%.
• Q2 revenue grew 12% to $1.37 billion, bookings rose 10%, and EPS increased 19% to $0.74; operating margin held at 50% while free cash flow reached $323 million.
• Trust-Based Solutions revenue grew 26%, supported by financial wellness, Engine marketplace activity, and partner channels; partner revenue accelerated 40% to $295 million, while the employee-benefits pipeline exceeded $30 million.
• Management highlighted strong customer and operating metrics, including 83 million paid customers, record Norton 360 adoption, higher renewal rates, and AI-driven efficiencies in marketing, customer support, and engineering.
• Gen is investing in Safe AI, agent protection, LifeLock resolution tools, and MoneyLion One, but said agentic AI is not expected to contribute materially to revenue this fiscal year; management also stated it is not pursuing a transformative acquisition currently.

Gen Digital Stock Up 0.4%

Shares of NASDAQ GEN traded up $0.10 on Wednesday, hitting $24.35. The company had a trading volume of 8,160,219 shares, compared to its average volume of 7,214,060. The firm has a market capitalization of $14.58 billion, a P/E ratio of 14.16, a PEG ratio of 0.78 and a beta of 1.26. The business has a 50 day moving average of $26.54 and a two-hundred day moving average of $24.38. Gen Digital has a 12-month low of $17.78 and a 12-month high of $31.65. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.00.

Gen Digital Dividend Announcement

The business 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. The ex-dividend date of this dividend was Monday, August 17th. This represents a $0.50 annualized dividend and a dividend yield of 2.1%. Gen Digital's dividend payout ratio is presently 29.07%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on GEN. Wells Fargo & Company increased their price target on Gen Digital from $22.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. Barclays upped their target price on Gen Digital from $27.00 to $32.00 and gave the company an "equal weight" rating in a report on Friday, August 7th. Royal Bank Of Canada dropped their target price on shares of Gen Digital from $26.00 to $24.00 and set a "sector perform" rating for the company in a report on Monday, October 12th. Wall Street Zen downgraded shares of Gen Digital from a "buy" rating to a "hold" rating in a report on Sunday, August 16th. Finally, Weiss Ratings raised Gen Digital from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, October 16th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Gen Digital currently has an average rating of "Hold" and a consensus target price of $30.25.

Insider Buying and Selling at Gen Digital

In other news, insider Travis Witteveen sold 30,000 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $29.42, for a total transaction of $882,600.00. Following the completion of the sale, the insider directly owned 496,545 shares in the company, valued at $14,608,353.90. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Bryan Seuk Ko sold 28,248 shares of the business's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $30.67, for a total value of $866,366.16. Following the completion of the transaction, the chief operating officer owned 744,262 shares in the company, valued at approximately $22,826,515.54. This trade represents a 3.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 558,508 shares of company stock valued at $16,356,093 in the last ninety days. Insiders own 9.70% of the company's stock.

Gen Digital Company Profile

Gen Digital Inc NASDAQ: GEN is a cybersecurity company that provides digital safety, privacy, and identity protection products for consumers. Its services are designed to help protect devices, personal information, online accounts, and digital identities from malware, fraud, identity theft, scams, and other cyber threats.

The company operates a portfolio of consumer brands that includes Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner. Its offerings include antivirus and device security software, virtual private network services, password management, identity theft monitoring and restoration support, privacy tools, scam protection, and performance and optimization utilities.

Gen Digital serves customers internationally through direct subscriptions and distribution partnerships.

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