Gen Digital (GEN) AI Stock Analysis

• Market Cap: $13.31B
• Dividend Yield: 1.82%
• Average Volume (3M): 6.49M
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.87
• Revenue Growth: 15.97%
• EPS Growth: -6.65%
• Country: US
• Employees: 3,400
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.64
• Shares Outstanding: 605,663,760
• 10 Day Avg. Volume: 6,296,503
• 30 Day Avg. Volume: 6,489,572
• PEG Ratio: 2.68
• Price to Book (P/B): 7.19
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 13.52
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 4.56
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $33.17
• Price Target Upside: 50.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.54
• Revenue Forecast (FY): $4.94B

• Rating: 64 Neutral
• Price Target: $26.00 ▲(18.34% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by solid financial performance (strong margins and cash flow) and a constructive earnings update with raised guidance and robust bookings/FCF. These positives are tempered by elevated leverage and a technically weak price trend (below major moving averages), with valuation appearing mid-range rather than clearly cheap.

Positive Factors

Cash generation and margin profile

Consistent, sizable FCF and strong operating margins mean earnings convert reliably to cash. This durable cash engine funds dividends, buybacks, debt paydown and strategic AI/product investments without relying on equity raises, preserving long-term optionality.

Large recurring subscriber base

A 78M+ paid user base and subscription model create predictable recurring revenue and cross-sell scale. High membership penetration and cross-sell levers support steady renewal economics, limiting revenue volatility and enabling margin leverage over time.

Management discipline and guidance

Management's raised guidance and explicit leverage target demonstrate disciplined capital allocation. Clear liquidity and a roadmap to reduce net leverage bolster financial flexibility and credibility in executing buybacks, dividends and strategic investments long-term.

Negative Factors

High leverage and refinancing risk

Material indebtedness limits financial flexibility and raises refinancing and interest-rate risk. Elevated leverage can force tighter cash allocation in downturns, increasing vulnerability to higher rates and constraining strategic investment or M&A optionality over months to years.

Slowing core cyber safety revenue growth

Core product revenue deceleration signals structural headwinds in the legacy portfolio or intensified competition. Persistent slow growth in the main segment could impede overall top-line expansion and make future margin gains dependent on new product monetization and upsell success.

Monetization uncertainty for AI/agent protection

Investments in AI/agent protection are strategically important but lack clear pricing and timing. Uncertain monetization makes return-on-investment unpredictable and could lead to prolonged margin pressure if heavy R&D and go‑to‑market spend precede committed revenue.

Gen Digital Business Overview & Revenue Model

Company Description

Gen Digital Inc. provides cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Norton 360, an integrated platform provides extensive cyber safety coverage and a subscription service providing protection for PCs, Macs, and mobile devices against malware, viruses, adware, ransomware, and other online threats on various platforms; and Norton and LifeLock identity theft protection solution that offers monitoring, alerts, and restoration services to its customers. The company also provides Norton Secure VPN solution, which enhances security and online privacy by providing an encrypted data tunnel; Privacy Monitor Assistant, an on-demand, white glove service where agents help members delete personal information from data brokers online; Home Title Protect product that detects fraud and notifies members; and Avira Security, a consumer-focused portfolio of cybersecurity and privacy solutions. It offers Dark Web Monitoring product, which looks for personal information of its Norton 360 members on the Dark Web; and Social Media Monitoring solution that helps to keep customers' social media accounts safer by monitoring them for account takeovers, risky activity, and inappropriate content. The company also provides AntiTrack product, which helps to keep personal information and browsing activity private by blocking trackers and disguising digital fingerprints online; and Online Reputation Management solution that manages online search results, personal branding, and digital privacy. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is based in Tempe, Arizona.

How the Company Makes Money

Gen Digital generates revenue through multiple streams, primarily by selling subscription-based services for its cybersecurity products. These include annual or monthly subscriptions for antivirus software, VPN services, and identity protection plans. The company also earns money through the sale of one-time software licenses and additional features or upgrades within its products. Significant partnerships with technology platforms and integrations with other software solutions further enhance its market reach and customer base, contributing to recurring revenue. Additionally, Gen Digital may engage in affiliate marketing and partnerships that provide referral commissions for new customer acquisitions.

Gen Digital Financial Statement Overview

Summary

Strong cash generation (TTM FCF ~$1.52B, +16.7% TTM) and healthy operating profitability (gross margin ~79%, EBITDA margin ~46%) support the score. Offsetting factors are balance-sheet leverage (debt ~$8.4B vs. equity ~$2.3B; debt-to-equity ~3.5x) and a step-down in net margin (TTM ~12.7% vs. ~16.3% in FY2025).

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is solid (up 5.7%) and profitability remains healthy with strong gross margins (~79%) and robust EBITDA margins (~46%). However, net margin has stepped down versus prior annual periods (TTM ~12.7% vs. ~16.3% in FY2025), and net income is below FY2025 despite higher revenue—suggesting higher costs, interest, or other below-the-line pressure.

Balance Sheet

Leverage remains the key weakness: debt is high at ~$8.4B versus equity of ~$2.3B, translating to elevated debt-to-equity (~3.5x in TTM). The equity base has improved materially from negative levels in FY2021–FY2022, and returns on equity are still strong (~24.7% TTM), but the capital structure is still debt-heavy, leaving less flexibility if earnings soften or financing costs rise.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (~$1.54B) and free cash flow (~$1.52B) are both strong, with free cash flow growth up ~16.7% TTM. Free cash flow closely tracks net income (about ~98% of net income), indicating earnings are translating well into cash, though operating cash flow relative to revenue is moderate (~0.52) and has been volatile across annual periods.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.73B	3.94B	3.80B	3.32B	2.80B	2.55B
Gross Profit	3.67B	3.16B	3.07B	2.73B	2.39B	2.19B
EBITDA	2.18B	2.03B	1.60B	1.51B	1.33B	1.19B
Net Income	603.00M	643.00M	607.00M	1.33B	836.00M	554.00M
Balance Sheet
Total Assets	15.83B	15.49B	15.79B	15.95B	6.94B	6.36B
Cash, Cash Equivalents and Short-Term Investments	619.00M	1.01B	846.00M	750.00M	1.89B	951.00M
Total Debt	8.41B	8.31B	8.65B	9.82B	3.83B	3.69B
Total Liabilities	13.50B	13.23B	13.65B	13.75B	7.04B	6.86B
Stockholders Equity	2.33B	2.27B	2.14B	2.20B	-93.00M	-500.00M
Cash Flow
Free Cash Flow	1.52B	1.21B	2.04B	751.00M	968.00M	700.00M
Operating Cash Flow	1.54B	1.22B	2.06B	757.00M	974.00M	706.00M
Investing Cash Flow	-905.00M	-100.00M	2.00M	-6.55B	326.00M	-69.00M
Financing Cash Flow	-930.00M	-970.00M	-1.96B	4.68B	-333.00M	-1.90B

Gen Digital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEN, the sentiment is Negative. The current price of 21.97 is below the 20-day moving average (MA) of 23.26, below the 50-day MA of 25.22, and below the 200-day MA of 27.51, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEN.

Gen Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	72 Outperform	$55.94B	31.88	135.72%	―	14.78%	22.52%
GEN	64 Neutral	$13.31B	22.67	26.90%	1.82%	15.97%	-6.65%
ZS	62 Neutral	$23.82B	-593.37	-2.41%	―	23.24%	-8.83%
CRWD	62 Neutral	$88.30B	-287.57	-8.88%	―	22.05%	-341.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	57 Neutral	$57.30B	-583.36	-8.16%	―	28.06%	-7.44%

Gen Digital Corporate Events

Gen Digital Appoints Bryan Ko as COO

On November 3, 2025, Gen Digital Inc. appointed Bryan Ko as the Chief Operating Officer, while he continues his role as Chief Legal Officer and Secretary. The Board also approved a new Executive Severance and Retention Plan, providing enhanced severance, change-in-control, and retirement benefits for certain executives, potentially impacting executive retention and company stability.

The most recent analyst rating on (GEN) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Gen Digital stock, see the GEN Stock Forecast page.