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

Key Points

• Gen Digital raised its FY 2027 outlook to EPS of $2.97 and revenue of $5.5 billion, exceeding analyst consensus estimates of $2.87 EPS and $5.4 billion revenue. Q2 2027 EPS guidance was set at $0.73.
• The company’s latest quarterly results beat expectations, with EPS of $0.71 versus $0.69 expected and revenue of $1.34 billion versus $1.31 billion; revenue increased 6.3% year over year.
• Shares fell 3.6% as analyst sentiment remained cautious: Gen Digital carries an average “Hold” rating and a $30.80 price target. The company also pays a quarterly dividend of $0.125, equating to a 2.4% yield.

Gen Digital (NASDAQ:GEN - Get Free Report) updated 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 EPS 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

A number of research firms recently issued reports on GEN. Barclays boosted their price objective 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 reduced their target price on Gen Digital from $30.00 to $26.00 and set a "sector perform" rating on the stock in a research note on Friday. Weiss Ratings upgraded Gen Digital from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, July 15th. Wall Street Zen lowered shares of Gen Digital from a "buy" rating to a "hold" rating in a research note on Sunday, August 16th. Finally, Wells Fargo & Company upped their price target 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. One research 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's stock. According to data from MarketBeat, Gen Digital has an average rating of "Hold" and an average price target of $30.80.

Gen Digital Stock Down 3.6%

Gen Digital stock opened at $20.85 on Tuesday. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.00. The firm has a market cap of $12.48 billion, a P/E ratio of 12.12, a P/E/G ratio of 0.68 and a beta of 1.22. The business has a fifty day moving average of $28.40 and a two-hundred day moving average of $24.69. Gen Digital has a twelve month low of $17.78 and a twelve month high of $31.65.

Gen Digital (NASDAQ:GEN - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.02. The business had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. Gen Digital had a return on equity of 55.93% and a net margin of 20.73%.The business's revenue was up 6.3% compared to the same quarter last year. During the same period last year, the business posted $0.64 EPS. 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, analysts forecast that Gen Digital will post 2.64 earnings per share for the current fiscal year.

Gen Digital Announces Dividend

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

Insiders Place Their Bets

In other news, COO Bryan Seuk Ko sold 28,248 shares of the firm's stock in a transaction dated Friday, September 4th. The shares were 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 in the company, valued at approximately $22,826,515.54. This trade represents a 3.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Travis Witteveen sold 30,000 shares of Gen Digital stock in a transaction that occurred on 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 transaction, the insider directly owned 496,545 shares in the company, valued at approximately $14,608,353.90. The trade was a 5.70% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 558,508 shares of company stock worth $16,356,093. 9.70% of the stock is owned by corporate insiders.

Gen Digital Company Profile

Gen Digital Inc NASDAQ: GEN is a global cybersecurity and consumer safety company that provides products designed to help individuals and families protect their devices, online identities, personal information and digital privacy. The company serves customers through a portfolio of consumer-focused cybersecurity and privacy brands.

Its products and services include antivirus and device security, identity theft protection, virtual private networks, password management, online privacy tools, scam protection and family safety features.

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