Gen Digital Inc. (GEN)
NASDAQ:GEN
Want to see GEN full AI Analyst Report?
Top Page
Gen Digital
(NASDAQ:GEN)
Select Model
Select Model
Rating:70Outperform
Price Target:
$27.00
▲(34.19% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong profitability and cash generation, reinforced by a positive earnings outlook and shareholder returns. Offsetting this are balance-sheet leverage risk and a mixed technical setup (overbought near-term readings and still below the 200-day average), while valuation is supportive with a low P/E and a solid dividend yield.
Positive Factors
Large recurring customer base
Gen's 79M paid customers and 107M connected accounts form a durable subscription revenue foundation. High retention (LifeLock ~90%), Norton cross-sell >26% and cohort ARPU +7–10% support multi-year recurring cash flows, efficient cross-sell and scalable margin expansion.
Negative Factors
High leverage / debt-heavy balance sheet
Material leverage (≈3.1x debt-to-equity) constrains Gen's financial flexibility and raises refinancing and interest-rate sensitivity. Elevated debt limits capital allocation choices and reduces downside resilience if revenue or free cash flow growth slows over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Large recurring customer base
Gen's 79M paid customers and 107M connected accounts form a durable subscription revenue foundation. High retention (LifeLock ~90%), Norton cross-sell >26% and cohort ARPU +7–10% support multi-year recurring cash flows, efficient cross-sell and scalable margin expansion.
Read all positive factors
Gen Digital Key Performance Indicators (KPIs)
Gen Digital (GEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.14B
Dividend Yield1.82%
Average Volume (3M)7.67M
Price to Earnings (P/E)11.9
Beta (1Y)0.93
Revenue Growth27.06%
EPS Growth53.73%
CountryUS
Employees3,400
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.60
Shares Outstanding605,663,760
10 Day Avg. Volume10,648,123
30 Day Avg. Volume7,672,496
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)4.43
Price to Sales (P/S)2.31
P/FCF Ratio7.59
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue4.57
Enterprise Value/Gross Profit5.99
Enterprise Value/Ebitda8.83
Forecast
1Y Price Target
$28.50Price Target Upside41.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.88
Revenue Forecast (FY)$5.24B
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 ...
How the Company Makes Money
Gen Digital primarily makes money by selling consumer cybersecurity subscriptions and related services under its brands. A substantial portion of revenue is generated from recurring subscription plans (typically monthly or annual) for security sui...
Gen Digital Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall: management reported record revenue ($5.0B), robust bookings ($5.1B), double-digit EPS growth, industry-leading profitability (51% operating margin) and standout cash generation ($1.5B FCF). Trust-Based Solutions (MoneyLion, LifeLock, Engine) delivered rapid growth and Engine showed strong partnership momentum. Management raised FY27 guidance to 8%–10% revenue growth and mid-teens EPS, while achieving a stronger balance sheet (3x net leverage) and continued capital returns. Key risks discussed include lower margins in newer agentic offerings (due to third-party LLM costs), mix shift toward lower-margin TBS as it scales, and FX/market volatility—but these were framed as manageable given synergies, cross-sell opportunities and a disciplined capital allocation approach.Positive Updates
Record Revenue and EPS Growth
Fiscal 2026 revenue exceeded $5.0 billion for the first time (record $5.0B), up 27% reported and up 9% pro forma year-over-year; non-GAAP EPS reached $2.56, up 15% YoY and marking 10 consecutive quarters meeting the 12%–15% EPS growth target.
Negative Updates
Lower Margin Profile in Trust-Based Solutions
Trust-Based Solutions operates at a lower segment margin (~30%) compared with Cyber Safety (~61%), creating mix pressure as TBS scales and potentially diluting consolidated margins until synergies and scale offset the mix shift.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and EPS Growth
Fiscal 2026 revenue exceeded $5.0 billion for the first time (record $5.0B), up 27% reported and up 9% pro forma year-over-year; non-GAAP EPS reached $2.56, up 15% YoY and marking 10 consecutive quarters meeting the 12%–15% EPS growth target.
Read all positive updates
Company Guidance
Gen guided fiscal 2027 revenue of $5.325–$5.425 billion (8%–10% pro forma growth) and non‑GAAP EPS of $2.85–$2.95 (13%–17% pro forma growth, 15% at the midpoint), and for Q1 expects revenue of $1.30–$1.325 billion (8%–10% pro forma) and non‑GAAP EPS of $0.68–$0.70 (13%–17% pro forma); the outlook assumes current FX rates, anticipates mid‑teens EPS growth driven by AI efficiencies and revenue synergies (including more than $100 million incremental annual revenue beginning H2 FY27 from embedded financial‑wellness and Engine growth), and sits alongside strong cash metrics—exiting FY26 at ~3x net leverage with $1.5 billion free cash flow (≈30% of revenue, +26% YoY), $449 million free cash flow in Q4, a $0.125 quarterly dividend, and $2.1 billion remaining on the share repurchase authorization.Gen Digital Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
46
Neutral
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.00B | 3.94B | 3.80B | 3.32B | 2.80B |
| Gross Profit | 3.71B | 3.16B | 3.07B | 2.73B | 2.39B |
| EBITDA | 2.65B | 2.03B | 1.60B | 1.51B | 1.33B |
| Net Income | 973.00M | 643.00M | 607.00M | 1.33B | 836.00M |
Balance Sheet | |||||
| Total Assets | 15.59B | 15.49B | 15.79B | 15.95B | 6.94B |
| Cash, Cash Equivalents and Short-Term Investments | 411.00M | 1.01B | 846.00M | 750.00M | 1.89B |
| Total Debt | 8.20B | 8.31B | 8.65B | 9.82B | 3.83B |
| Total Liabilities | 12.98B | 13.23B | 13.65B | 13.75B | 7.04B |
| Stockholders Equity | 2.61B | 2.27B | 2.14B | 2.20B | -93.00M |
Cash Flow | |||||
| Free Cash Flow | 1.52B | 1.21B | 2.04B | 751.00M | 968.00M |
| Operating Cash Flow | 1.54B | 1.22B | 2.06B | 757.00M | 974.00M |
| Investing Cash Flow | -1.01B | -100.00M | 2.00M | -6.55B | 326.00M |
| Financing Cash Flow | -1.13B | -970.00M | -1.96B | 4.68B | -333.00M |
Gen Digital Technical Analysis
Positive
20.12
Price Trends
20.26
Positive
22.16
Positive
24.91
Negative
Market Momentum
1.33
Negative
76.45
Negative
94.09
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 20.12 is below the 20-day moving average (MA) of 21.40, below the 50-day MA of 20.26, and below the 200-day MA of 24.91, indicating a neutral trend. The MACD of 1.33 indicates Negative momentum. The RSI at 76.45 is Negative, neither overbought nor oversold. The STOCH value of 94.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEN.
Gen Digital Risk Analysis
Gen Digital disclosed 39 risk factors in its most recent earnings report. Gen Digital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gen Digital Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $95.24B | 28.24 | 155.65% | ― | 15.75% | 6.24% | |
73 Outperform | $165.48B | 720.36 | -4.68% | ― | 21.71% | -908.90% | |
70 Outperform | $15.14B | 11.88 | 39.86% | 1.82% | 27.06% | 53.73% | |
69 Neutral | $28.05B | -232.70 | -3.48% | ― | 23.91% | -326.25% | |
62 Neutral | $74.27B | -793.39 | -6.23% | ― | 31.55% | -4.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GEN
Gen Digital
24.85
-2.21
-8.17%
FTNT
Fortinet
129.46
26.30
25.49%
ZS
Zscaler
171.01
-83.09
-32.70%
CRWD
CrowdStrike Holdings
648.23
192.64
42.28%
NET
Cloudflare
212.65
54.61
34.55%
Gen Digital Corporate Events
Business Operations and Strategy
Gen Digital Launches AI-Focused Fiscal 2027 Restructuring Program
Positive
May 7, 2026
On May 5, 2026, Gen Digital’s board approved a fiscal 2027 restructuring program as part of its internal transformation efforts, centered on greater adoption of artificial intelligence technologies. The company expects to incur about $50 mil...
Business Operations and StrategyPrivate Placements and Financing
Gen Digital Extends Credit Facility and Term Loan Maturities
Positive
Mar 27, 2026
On March 27, 2026, Gen Digital Inc. amended its existing credit agreement by entering into a Third Amendment that extends the maturity of its $1.5 billion revolving credit facility to March 27, 2031, subject to a springing maturity tied to a minim...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.