Gen Digital (NASDAQ:GEN) Issues Q3 2027 Earnings Guidance

Key Points

• Gen Digital issued above-consensus Q3 fiscal 2027 EPS guidance of $0.73–$0.75, compared with the $0.72 analyst estimate, while revenue guidance of approximately $1.4 billion matched expectations.
• The company’s latest quarter exceeded forecasts, with EPS of $0.74 versus $0.72 expected and revenue up 12.2% year over year to $1.37 billion. Management cited strong cybersecurity demand, record Cyber Safety margins, and growth in financial-wellness products.
• Analysts remain generally cautious, with a consensus “Hold” rating and average price target of $31.60, while Gen Digital declared its regular $0.125 quarterly dividend, equivalent to $0.50 annually and a yield of roughly 1.7%.

Gen Digital (NASDAQ:GEN - Get Free Report) updated its third quarter 2027 earnings guidance on Friday morning. The company provided EPS guidance of 0.730-0.750 for the period, compared to the consensus earnings per share estimate of 0.720. The company issued revenue guidance of $1.4 billion, compared to the consensus revenue estimate of $1.4 billion.

Analyst Ratings Changes

Several analysts have recently commented on GEN shares. Royal Bank Of Canada raised their price objective on shares of Gen Digital from $24.00 to $27.00 and gave the company a "sector perform" rating in a research report on Thursday. Wells Fargo & Company upped their target price on shares of Gen Digital from $22.00 to $28.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. Barclays increased their price target on Gen Digital from $27.00 to $32.00 and gave the stock an "equal weight" rating in a research note on Friday, August 7th. Weiss Ratings raised Gen Digital from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, October 16th. Finally, Morgan Stanley boosted their price objective on Gen Digital from $32.00 to $34.00 and gave the company an "equal weight" rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Gen Digital presently has an average rating of "Hold" and a consensus target price of $31.60.

Gen Digital Stock Performance

Shares of NASDAQ:GEN opened at $28.79 on Friday. The firm's 50 day simple moving average is $26.48 and its 200-day simple moving average is $24.38. The firm has a market cap of $17.24 billion, a PE ratio of 14.42, a price-to-earnings-growth ratio of 0.76 and a beta of 1.26. Gen Digital has a one year low of $17.78 and a one year high of $31.65. The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.47 and a current ratio of 0.47.

Gen Digital (NASDAQ:GEN - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.02. Gen Digital had a return on equity of 57.97% and a net margin of 23.07%. The company had revenue of $1.37 billion during the quarter, compared to analyst estimates of $1.34 billion. During the same quarter in the prior year, the business earned $0.62 earnings per share. Gen Digital's revenue was up 12.2% on a year-over-year basis. As a group, equities analysts predict that Gen Digital will post 2.66 EPS for the current year.

Gen Digital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 9th. Stockholders of record on Monday, November 16th will be paid a dividend of $0.1250 per share. The ex-dividend date is Monday, November 16th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.7%. Gen Digital's payout ratio is presently 29.07%.

Insiders Place Their Bets

In other news, COO Bryan Seuk Ko sold 28,248 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $30.67, for a total transaction 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ondrej Vlcek sold 200,000 shares of the firm's stock in a transaction dated 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 completion of the transaction, the director owned 3,332,904 shares of the company's stock, valued at approximately $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. Over the last quarter, insiders sold 558,508 shares of company stock valued at $16,356,093. Insiders own 9.70% of the company's stock.

More Gen Digital News

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

• Positive Sentiment: Q2 beat and raised outlook: Adjusted earnings were $0.74 per share versus the $0.72 consensus, while revenue rose 12.2% year over year to $1.37 billion, exceeding the $1.34 billion estimate. Gen also raised its fiscal 2027 outlook, citing strong cybersecurity demand. Reuters article
• Positive Sentiment: Above-consensus near-term guidance: Gen forecast fiscal third-quarter EPS of $0.73-$0.75, ahead of the $0.72 consensus, with revenue guidance of approximately $1.4 billion in line with expectations. Yahoo Finance article
• Positive Sentiment: Improving profitability and demand: Management highlighted record Cyber Safety margins and strength in financial-wellness products. Partner-channel revenue grew 40% to $295 million, supporting the company’s double-digit growth narrative. Zacks article
• Positive Sentiment: Analyst support and capital returns: Morgan Stanley raised its price target to $34 from $32. Gen also declared its regular $0.125 quarterly dividend, equivalent to $0.50 annually and an approximately 1.8% yield. MarketScreener article
• Neutral Sentiment: No major acquisition planned: Gen said it is not currently pursuing a “transformative acquisition,” reducing speculation about a large deal but keeping investor focus on organic growth and margins. Barron's article
• Negative Sentiment: Valuation caution: Royal Bank of Canada raised its target to $27 but maintained a “sector perform” rating, implying its target remains below the reported share price. MarketBeat article

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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