Gen Digital (GEN) AI Stock Analysis

• Market Cap: $16.07B
• Dividend Yield: 1.92%
• Average Volume (3M): 4.41M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.91
• 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: 6,444,036
• 30 Day Avg. Volume: 4,407,581
• 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: 1.58
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 7.15
• Enterprise Value/Ebitda: 12.30
• 1Y Price Target: $34.43
• Price Target Upside: 32.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.54
• Revenue Forecast (FY): $4.86B

• Rating: 65 Neutral
• Price Target: $28.00 ▲(7.44% Upside)

Gen Digital's overall score is driven by strong financial performance and positive earnings call highlights, including record revenue growth and raised guidance. However, technical analysis indicates bearish trends, and valuation metrics suggest the stock may be overvalued. High leverage and declining net profit margins are additional concerns.

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 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

Gen Digital demonstrates robust revenue growth and profitability, with strong cash flow generation. However, high leverage and declining net profit margins are areas of concern. The company should focus on improving net profitability and managing its debt levels to ensure long-term financial stability.

Income Statement

Gen Digital shows strong revenue growth with a 7.42% increase in TTM, supported by healthy gross and EBIT margins of 79.82% and 38.66% respectively. However, the net profit margin has decreased to 14.12% from previous periods, indicating some pressure on net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 3.75, suggesting significant leverage, which could pose risks if not managed properly. Return on equity is solid at 26.88%, reflecting efficient use of equity, but the equity ratio is relatively low at 14.45%, indicating a reliance on debt financing.

Cash Flow

Operating cash flow and free cash flow have shown growth, with a free cash flow growth rate of 11.86% in TTM. The free cash flow to net income ratio is strong at 98.76%, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio is moderate at 47.80%, suggesting room for improvement in cash flow efficiency.

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: Negative
• Last Price: 26.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 26.06 is below the 20-day moving average (MA) of 26.34, below the 50-day MA of 27.26, and below the 200-day MA of 27.94, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 49.59 is Neutral, 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
CRWD	73 Outperform	$130.64B	―	-8.99%	―	23.46%	-270.07%
FTNT	71 Outperform	$59.29B	32.83	228.04%	―	14.78%	22.52%
ZS	71 Outperform	$46.69B	―	-2.70%	―	23.31%	31.04%
GEN	65 Neutral	$16.07B	28.82	25.03%	1.92%	15.97%	-6.65%
CYBR	63 Neutral	$24.36B	―	-12.73%	―	43.26%	-1651.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	58 Neutral	$68.73B	―	-8.88%	―	28.06%	-7.44%

Gen Digital Corporate Events

Gen Digital Inc. Reports Record Q2 Earnings

Gen Digital Inc., a global leader in digital freedom, offers cybersecurity, online privacy, identity protection, and financial wellness solutions to nearly 500 million users across more than 150 countries. In its latest earnings report for Q2 FY26, Gen Digital Inc. reported record results, highlighting a 25% increase in revenue to $1,220 million and a 9% rise in operating income to $438 million. However, the company’s GAAP diluted EPS saw a decline of 17% to $0.21, while the non-GAAP diluted EPS increased by 15% to $0.62. The company also reported a year-to-date operating cash flow of $525 million, marking a 24% increase.

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.

The most recent analyst rating on (GEN) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Gen Digital stock, see the GEN Stock Forecast page.

Gen Digital Inc. Reports Strong Start to FY 2026

Gen Digital Inc. has kicked off fiscal year 2026 on a high note, as reflected in its latest earnings call. The company reported significant growth in revenue and successful integration of MoneyLion, showcasing robust performance across its segments. Despite facing challenges from evolving AI-driven cyber threats, Gen Digital continues to make strides in AI-driven innovation, setting a positive tone for the year ahead.

Gen Digital Inc. Reports Strong Q1 FY26 Growth

Gen Digital Inc., a global leader in digital freedom solutions, specializes in cybersecurity, online privacy, identity protection, and financial wellness through its trusted consumer brands such as Norton, Avast, and LifeLock. The company caters to nearly 500 million users in over 150 countries.