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

Gen Digital (NASDAQ:GEN) released its earnings results on Thursday. The company reported $0.71 earnings per share for the quarter, beating analysts’ consensus estimates of $0.69 by $0.02, FiscalAI reports. The company had revenue of $1.34 billion for the quarter, compared to analysts’ expectations of $1.31 billion. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. Gen Digital’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.64 EPS. 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 Price Performance

Shares of GEN traded up $1.07 during midday trading on Friday, hitting $29.17. 11,321,132 shares of the company traded hands, compared to its average volume of 4,184,866. The firm has a 50 day moving average of $25.96 and a 200-day moving average of $23.33. Gen Digital has a 52 week low of $17.78 and a 52 week high of $32.22. The stock has a market cap of $17.46 billion, a price-to-earnings ratio of 16.96 and a beta of 1.21. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.40 and a current ratio of 0.40.

Gen Digital Announces Dividend

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

Analyst Ratings Changes

Several equities analysts have recently commented on GEN shares. Barclays boosted 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. Jefferies Financial Group downgraded Gen Digital from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Wells Fargo & Company boosted 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. Wall Street Zen upgraded Gen Digital from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Weiss Ratings raised shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $31.67.

Key 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

Insider Transactions at Gen Digital

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

Institutional Investors Weigh In On Gen Digital

A number of hedge funds have recently bought and sold shares of the business. MUFG Securities EMEA plc bought a new stake in shares of Gen Digital in the 2nd quarter worth about $47,000. Geneos Wealth Management Inc. lifted its holdings in shares of Gen Digital by 221.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock valued at $46,000 after acquiring an additional 1,183 shares during the last quarter. Brown Brothers Harriman & Co. grew its position in 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 acquiring an additional 568 shares in the last quarter. Larson Financial Group LLC grew its position in Gen Digital by 20.9% in the third quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock worth $64,000 after acquiring an additional 390 shares in the last quarter. Finally, Quarry LP bought a new stake in Gen Digital during the fourth quarter worth approximately $90,000. Hedge funds and other institutional investors own 81.38% of the company’s stock.

About Gen Digital

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.