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

Gen Digital (NASDAQ:GEN) announced its earnings results on Wednesday. The company reported $0.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.72 by $0.02, FiscalAI reports. Gen Digital had a return on equity of 55.93% and a net margin of 20.73%. The business had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.34 billion. During the same quarter last year, the firm earned $0.62 EPS. Gen Digital’s revenue for the quarter was up 12.2% compared to the same quarter last year.

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 Trading Up 12.4%

Shares of GEN traded up $3.03 during mid-day trading on Thursday, reaching $27.38. 4,093,788 shares of the company were exchanged, compared to its average volume of 7,197,582. The business has a 50 day simple moving average of $26.47 and a two-hundred day simple moving average of $24.37. The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.47 and a current ratio of 0.47. The stock has a market capitalization of $16.39 billion, a PE ratio of 15.87, a PEG ratio of 0.78 and a beta of 1.26. Gen Digital has a 52 week low of $17.78 and a 52 week high of $31.65.

Gen Digital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 9th. Stockholders of record on Monday, November 16th will be given a dividend of $0.1250 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Monday, November 16th. Gen Digital’s dividend payout ratio (DPR) is 29.07%.

Insider Activity at Gen Digital

In other Gen Digital news, insider Travis Witteveen sold 30,000 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $29.42, for a total transaction of $882,600.00. Following the completion of the sale, the insider owned 496,545 shares of the company’s stock, valued at approximately $14,608,353.90. This represents a 5.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Bryan Seuk Ko sold 28,248 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $30.67, for a total transaction of $866,366.16. Following the transaction, the chief operating officer owned 744,262 shares of the company’s stock, valued at approximately $22,826,515.54. The trade was a 3.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 558,508 shares of company stock worth $16,356,093 over the last ninety days. Insiders own 9.70% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on GEN shares. Weiss Ratings raised shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Barclays raised their target price on shares of Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a report on Friday, August 7th. Royal Bank Of Canada cut their price target on Gen Digital from $26.00 to $24.00 and set a “sector perform” rating for the company in a research note on Monday, October 12th. Morgan Stanley set a $34.00 price target on Gen Digital in a research report on Thursday. Finally, Wall Street Zen lowered Gen Digital from a “buy” rating to a “hold” rating in a research note on Sunday, August 16th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $31.00.

Key Gen Digital News

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

• Positive Sentiment: Earnings and revenue exceeded expectations: Gen reported adjusted earnings of $0.74 per share, above the $0.72 consensus estimate, while revenue rose 12.2% year over year to $1.37 billion, surpassing expectations of $1.34 billion. EPS increased from $0.62 in the prior-year quarter. Gen Digital Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its fiscal 2027 outlook: The higher revenue forecast reflects strong demand for cybersecurity and digital-protection services, supporting the bullish reaction. Gen Digital raises annual revenue forecast
• Positive Sentiment: Growth was broad-based: Partner-channel revenue climbed 40% year over year to $295 million, highlighting increasing distribution momentum. Gen Digital: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Shareholder returns remain supported: Gen declared a quarterly dividend of $0.125 per share, or $0.50 annualized, payable December 9 to shareholders of record November 16. The indicated yield is approximately 2.1%. Gen Digital approves quarterly cash dividend
• Neutral Sentiment: Gen also benefited from broader cybersecurity-sector trading after Fortinet’s results pressured some peers, while Gen moved higher on its own earnings strength. Fortinet declines while Gen Digital rises
• Negative Sentiment: A technical warning preceded the rally: the stock had recently crossed below its 200-day moving average, signaling potential downside risk if the earnings-driven momentum fades. Gen Digital stock crosses below 200-day moving average

About Gen Digital

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.