Gen Digital (NASDAQ:GEN) Releases Q2 2027 Earnings Guidance

Key Points

• Gen Digital raised its Q2 2027 guidance to $0.73 EPS and $1.4 billion in revenue, exceeding consensus estimates of $0.70 EPS and $1.3 billion revenue. Full-year 2027 EPS guidance was updated to $2.97.
• Analyst sentiment remains cautious: the stock carries an overall “Hold” rating, with an average price target of $30.80, while recent firms made mixed target and rating changes.
• Gen Digital pays a quarterly dividend of $0.125, equivalent to a $0.50 annualized payout and a 2.4% yield; insiders have sold approximately $16.4 million of stock over the past 90 days.

Gen Digital (NASDAQ:GEN - Get Free Report) issued an update on its second quarter 2027 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.730-0.730 for the period, compared to the consensus EPS estimate of 0.700. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.3 billion. Gen Digital also updated its FY 2027 guidance to 2.970-2.970 EPS.

Analyst Ratings Changes

GEN has been the topic of several research reports. Royal Bank Of Canada lowered their price objective on shares of Gen Digital from $30.00 to $26.00 and set a "sector perform" rating on the stock in a research report on Friday. Weiss Ratings raised Gen Digital from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, July 15th. Wall Street Zen cut Gen Digital from a "buy" rating to a "hold" rating in a report on Sunday, August 16th. Barclays increased their price objective on Gen Digital from $27.00 to $32.00 and gave the company an "equal weight" rating in a research report on Friday, August 7th. Finally, Wells Fargo & Company raised their price objective on Gen Digital from $22.00 to $28.00 and gave the company 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. Based on data from MarketBeat, Gen Digital currently has an average rating of "Hold" and an average target price of $30.80.

Gen Digital Stock Down 3.6%

Shares of Gen Digital stock opened at $20.85 on Tuesday. Gen Digital has a 12-month low of $17.78 and a 12-month high of $31.65. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 3.00. The company's fifty day simple moving average is $28.40 and its two-hundred day simple moving average is $24.69. The company has a market cap of $12.48 billion, a P/E ratio of 12.12, a PEG ratio of 0.68 and a beta of 1.22.

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

Gen Digital Announces Dividend

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

Insider Activity

In other news, COO Bryan Seuk Ko sold 28,248 shares of Gen Digital stock in a transaction that occurred 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 completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ondrej Vlcek sold 200,000 shares of Gen Digital stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $30.00, for a total value of $6,000,000.00. Following the transaction, the director owned 3,332,904 shares of the company's stock, valued at $99,987,120. The trade was a 5.66% 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. Insiders own 9.70% of the company's stock.

About Gen Digital

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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