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

Gen Digital (NASDAQ:GEN) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.710-0.730 for the period, compared to the consensus EPS estimate of 0.700. The company issued revenue guidance of $1.3 billion-$1.4 billion, compared to the consensus revenue estimate of $1.3 billion. Gen Digital also updated its FY 2027 guidance to 2.870-2.970 EPS.

Gen Digital Stock Up 0.5%

GEN stock opened at $28.10 on Friday. The firm has a market cap of $16.82 billion, a PE ratio of 17.78 and a beta of 1.21. Gen Digital has a one year low of $17.78 and a one year high of $32.22. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.40 and a current ratio of 0.40. The firm’s 50 day moving average price is $25.90 and its 200-day moving average price is $23.29.

Gen Digital (NASDAQ:GEN) last posted its earnings results on Thursday, August 6th. The company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.69 by $0.02. Gen Digital had a return on equity of 55.47% and a net margin of 19.46%.The company had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the previous year, the business earned $0.64 earnings per share. The company’s revenue for the quarter 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. On average, equities research analysts anticipate that Gen Digital will post 2.61 EPS for the current year.

Gen Digital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 17th will be given a dividend of $0.125 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.8%. Gen Digital’s payout ratio is currently 31.65%.

Analysts Set New Price Targets

Several analysts recently weighed in on GEN shares. Weiss Ratings raised shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. Wall Street Zen downgraded shares of Gen Digital from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $27.00 price objective on shares of Gen Digital in a research report on Thursday, July 16th. Argus upgraded Gen Digital to a “strong-buy” rating in a research note on Friday, May 22nd. Finally, Barclays raised their target price on Gen Digital from $26.00 to $27.00 and gave the stock an “equal weight” rating in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, Gen Digital has a consensus rating of “Hold” and a consensus price target of $29.33.

Insider Buying and Selling at Gen Digital

In other news, Director John C. Chrystal purchased 3,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were acquired at an average cost of $27.06 per share, for a total transaction of $81,180.00. Following the completion of the purchase, the director directly owned 31,419 shares in the company, valued at $850,198.14. The trade was a 10.56% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ondrej Vlcek sold 100,000 shares of the company’s stock in a transaction on Wednesday, June 10th. The stock was 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 in the company, valued at $94,974,900.72. This represents a 2.54% decrease in their position. The disclosure for this sale is available in the SEC filing. 9.70% of the stock is owned by company insiders.

Gen Digital News Summary

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

• Positive Sentiment: Q1 results exceeded expectations: Gen Digital reported adjusted earnings of $0.71 per share, versus the $0.69 consensus estimate, while revenue rose 6.3% year over year to $1.34 billion, ahead of the $1.31 billion forecast. EPS also increased from $0.64 in the year-ago quarter. Gen Digital Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised above analyst expectations: Gen now expects fiscal 2027 adjusted EPS of $2.87 to $2.97, compared with the $2.83 consensus estimate, and revenue of $5.4 billion to $5.5 billion, versus the $5.4 billion consensus. The higher forecast signals management expects continued momentum in its cybersecurity business. Gen Digital Raises Annual Forecast on Strong Cybersecurity Demand
• Positive Sentiment: Near-term outlook also topped EPS expectations: Fiscal second-quarter EPS guidance of $0.71 to $0.73 is above the $0.70 analyst consensus. Management described the company as accelerating in the first quarter, supported by demand for its portfolio of digital-security products. Gen Further Accelerates in Q1 FY27 and Raises Full Year Guidance
• Neutral Sentiment: Second-quarter revenue guidance was broadly in line: The $1.3 billion to $1.4 billion forecast brackets the $1.3 billion consensus estimate, making the EPS outlook the clearer upside factor. Investors will likely focus on subscriber growth, retention, and execution against the raised annual targets during the earnings call.
• Negative Sentiment: Balance-sheet leverage remains a background risk: Gen Digital’s debt-to-equity ratio is approximately 3.07 and its current ratio is 0.40, which could limit financial flexibility if growth slows or refinancing costs rise. However, the latest earnings release did not indicate a deterioration in operating performance.

Institutional Investors Weigh In On Gen Digital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. increased its stake in 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 purchasing an additional 1,183 shares in the last quarter. MUFG Securities EMEA plc purchased a new position in Gen Digital during the second quarter worth $47,000. Brown Brothers Harriman & Co. increased its position in Gen Digital by 47.8% during the third quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock worth $50,000 after buying an additional 568 shares in the last quarter. Larson Financial Group LLC lifted its position in shares of Gen Digital by 20.9% in the third quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock valued at $64,000 after acquiring an additional 390 shares in the last quarter. Finally, Quarry LP purchased a new stake in Gen Digital during the 4th quarter worth about $90,000. 81.38% of the stock is currently owned by institutional investors and hedge funds.

Gen Digital Company Profile

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.