Gen Digital (GEN) AI Stock Analysis

• Market Cap: $16.98B
• Dividend Yield: 1.8%
• Average Volume (3M): 4.81M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.85
• Revenue Growth: 15.97%
• EPS Growth: -6.65%
• Country: US
• Employees: 3,400
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.62
• Shares Outstanding: 616,716,100
• 10 Day Avg. Volume: 3,182,386
• 30 Day Avg. Volume: 4,810,918
• 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: 1.49
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 7.15
• Enterprise Value/Ebitda: 12.30
• 1Y Price Target: $32.60
• Price Target Upside: 17.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.54
• Revenue Forecast (FY): $4.94B

• Rating: 67 Neutral
• Price Target: $28.00 ▲(0.79% Upside)

Gen Digital's overall stock score reflects strong earnings call performance and revenue growth, offset by high leverage and valuation concerns. The technical indicators suggest a bearish trend, while the financial performance highlights the need for improved profitability and reduced financial risk.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective business strategies, suggesting sustained future performance.

AI-Driven Innovation

The integration of AI across products enhances operational efficiency and product capabilities, providing a competitive edge in the cybersecurity market.

Strong Cash Generation

Robust free cash flow growth supports financial flexibility and the ability to invest in growth opportunities, underpinning long-term business sustainability.

Negative Factors

High Leverage

Significant leverage could pose risks to financial stability and limit strategic flexibility, especially in adverse market conditions.

Declining Net Profit Margins

A declining net profit margin indicates pressure on profitability, which could affect the company's ability to reinvest in growth and maintain competitive positioning.

Macro Environment Concerns

Macro challenges could impact demand for cybersecurity solutions and increase operational risks, potentially affecting growth and profitability.

Gen Digital Business Overview & Revenue Model

Company Description

Gen Digital (GEN) is a global cybersecurity company that specializes in providing digital safety and privacy solutions for consumers and businesses. The company operates in sectors such as internet security, identity protection, and privacy management, offering a range of products including antivirus software, VPN services, and identity theft protection. Gen Digital aims to empower users with tools and technologies that safeguard their digital lives against evolving threats.

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

Gen Digital exhibits strong revenue growth and efficient cost management, but faces challenges with declining net profit margins and high leverage. While cash flow generation remains solid, the company should focus on improving profitability and reducing financial risk to enhance its financial health.

Income Statement

Gen Digital shows a solid revenue growth rate of 5.82% TTM, indicating a positive trajectory. The gross profit margin is strong at 79.32%, reflecting efficient cost management. However, the net profit margin has decreased to 12.74% TTM from 16.34% in the previous annual report, suggesting some pressure on profitability. EBIT and EBITDA margins are healthy, but the decline in net income is a concern.

Balance Sheet

The company has a high debt-to-equity ratio of 3.54 TTM, indicating significant leverage, which could pose financial risk. Return on equity is reasonable at 24.67%, but has decreased from previous levels, suggesting reduced efficiency in generating returns for shareholders. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Operating cash flow is robust, but the free cash flow has slightly declined by 3.63% TTM. The operating cash flow to net income ratio is moderate at 0.52, indicating that cash generation is not fully aligned with net income. The free cash flow to net income ratio is strong at 0.98, suggesting good cash conversion.

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

Gen Digital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEN, the sentiment is Positive. The current price of 27.78 is above the 20-day moving average (MA) of 26.66, above the 50-day MA of 26.71, and below the 200-day MA of 27.91, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 91.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEN.

Gen Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	71 Outperform	$60.68B	33.96	228.04%	―	14.78%	22.52%
GEN	67 Neutral	$16.98B	30.12	25.03%	1.80%	15.97%	-6.65%
CRWD	67 Neutral	$130.98B	―	-8.88%	―	22.05%	-341.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	$73.19B	―	-8.88%	―	28.06%	-7.44%
ZS	60 Neutral	$38.80B	―	-2.41%	―	23.24%	-8.83%
CYBR	52 Neutral	$23.70B	―	-12.73%	―	43.26%	-1651.82%

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.

Gen Digital Elects Board and Approves Key Proposals

On September 9, 2025, Gen Digital held its Annual Meeting of Stockholders where several key proposals were voted upon. All nine nominees were elected to the Board of Directors, KPMG LLP’s appointment as the independent registered public accounting firm for the 2026 fiscal year was ratified, and the company’s executive compensation was approved.