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

Gen Digital (NASDAQ:GEN) posted its earnings results on Thursday. The company reported $0.67 EPS for the quarter, topping analysts’ consensus estimates of $0.65 by $0.02, FiscalAI reports. Gen Digital had a return on equity of 56.78% and a net margin of 19.46%.The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same period in the previous year, the business earned $0.59 earnings per share. The firm’s revenue for the quarter was up 27.0% on a year-over-year basis. Gen Digital updated its Q1 2027 guidance to 0.680-0.700 EPS and its FY 2027 guidance to 2.850-2.950 EPS.

Here are the key takeaways from Gen Digital’s conference call:

• Gen reported record FY2026 results with $5.0B+ revenue and record bookings of $5.1B, non-GAAP EPS of $2.56 (+15%), $1.5B free cash flow, and achieved 3x net leverage a year ahead of plan while raising FY2027 guidance to 8%–10% revenue growth and mid?teens EPS growth.
• The company is shifting to a unified data + agentic AI platform (Gen Stack, Genie, Agent Trust Hub, Norton Neo) and partnerships with frontier model providers to become the consumer “trust layer” for AI agents, which management says should unlock new product and monetization paths.
• Trust-based solutions are the growth engine: MoneyLion exceeded expectations (?40%+ revenue growth), LifeLock mobile revenue grew ~50% with NPS and retention gains, and Engine has tripled revenue in three years with new embeds (Equifax, Microsoft Copilot) and ~400M annual inquiries.
• Cyber Safety remains the foundation with mid-single-digit growth, ~79M customers, ~60% membership adoption and a 61% segment margin, but management highlights increasing AI-driven threats (deepfakes, agentic scams) that require continued investment.
• Balance sheet and capital allocation are strong: $1.5B FCF, ~$6B returned to shareholders historically, recent $200M buyback and $200M debt paydown, a $0.125 quarterly dividend, and $2.1B remaining buyback authorization.

Gen Digital Trading Up 12.5%

Shares of Gen Digital stock traded up $2.52 during trading on Friday, hitting $22.71. The stock had a trading volume of 17,306,295 shares, compared to its average volume of 6,566,075. Gen Digital has a 12 month low of $17.78 and a 12 month high of $32.22. The company has a debt-to-equity ratio of 3.50, a current ratio of 0.47 and a quick ratio of 0.47. The firm’s fifty day simple moving average is $20.15 and its 200-day simple moving average is $23.90. The stock has a market cap of $13.76 billion, a PE ratio of 14.38 and a beta of 1.10.

Gen Digital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Monday, May 18th will be issued a $0.125 dividend. This represents a $0.50 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Monday, May 18th. Gen Digital’s dividend payout ratio (DPR) is 51.55%.

Trending Headlines about Gen Digital

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

• Positive Sentiment: Gen Digital beat quarterly expectations, with revenue and EPS both coming in above estimates, and said Trust-Based Solutions revenue surged sharply year over year. The results suggest improving growth momentum and stronger demand in cybersecurity. Article Title
• Positive Sentiment: The company raised fiscal 2027 guidance above Wall Street expectations, pointing to 8%–10% revenue growth and adjusted EPS of $2.85–$2.95, which reinforced optimism about future earnings power. Article Title
• Positive Sentiment: RBC lifted its price target on Gen Digital to $24 from $22, signaling slightly improved analyst confidence even though the firm kept a “sector perform” rating. Article Title
• Neutral Sentiment: Gen Digital announced a quarterly dividend of $0.125 per share, which may support income-focused investors but is not a major growth catalyst by itself.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Jefferies Financial Group downgraded Gen Digital from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Gen Digital in a research note on Thursday, January 22nd. Wall Street Zen upgraded shares of Gen Digital from a “hold” rating to a “buy” rating in a research report on Saturday. Zacks Research upgraded shares of Gen Digital from a “strong sell” rating to a “hold” rating in a report on Wednesday, February 18th. Finally, Royal Bank Of Canada increased their price target on shares of Gen Digital from $22.00 to $24.00 and gave the company a “sector perform” rating in a report on Friday. Two analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Gen Digital presently has an average rating of “Hold” and a consensus target price of $31.29.

Institutional Trading of Gen Digital

Institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. grew its stake in shares of Gen Digital by 1.1% during the first quarter. Goldman Sachs Group Inc. now owns 2,703,712 shares of the company’s stock valued at $71,757,000 after buying an additional 28,522 shares during the last quarter. Great Lakes Advisors LLC purchased a new stake in shares of Gen Digital during the first quarter valued at $205,000. Woodline Partners LP grew its holdings in shares of Gen Digital by 37.8% in the first quarter. Woodline Partners LP now owns 27,590 shares of the company’s stock worth $732,000 after purchasing an additional 7,562 shares during the last quarter. Focus Partners Wealth increased its stake in Gen Digital by 9.7% in the 1st quarter. Focus Partners Wealth now owns 22,347 shares of the company’s stock worth $593,000 after buying an additional 1,980 shares during the period. Finally, Geneos Wealth Management Inc. lifted its holdings in Gen Digital by 221.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock valued at $46,000 after buying an additional 1,183 shares in the last quarter. 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.