Gen Digital (GEN)
NASDAQ:GEN
Want to see GEN full AI Analyst Report?
Top Page
Gen Digital
(NASDAQ:GEN)
Select Model
Select Model
Rating:61Neutral
Price Target:
$21.50
▲(6.86% Upside)
Action:ReiteratedDate:03/28/26
The score is supported by strong cash flow and generally healthy operating profitability, plus a positive earnings update with raised guidance. The main drags are elevated leverage and a notably weak technical picture (below major moving averages with bearish momentum), with valuation and dividend providing only moderate offset.
Positive Factors
Strong free cash flow generation
Gen’s free cash flow closely tracks net income (~98%), producing consistently large cash conversion. Durable FCF supports sustained dividend payments, opportunistic buybacks and systematic debt reduction, providing a multi-quarter buffer to fund AI/product investments and execute deleveraging targets.
Negative Factors
Elevated leverage
Gen’s capital structure remains debt-heavy, leaving limited flexibility if revenue disappoints or rates rise. Elevated leverage increases interest expense sensitivity and refinancing exposure (Term Loan A refinancing noted), constraining free cash deployment and magnifying downside risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Gen’s free cash flow closely tracks net income (~98%), producing consistently large cash conversion. Durable FCF supports sustained dividend payments, opportunistic buybacks and systematic debt reduction, providing a multi-quarter buffer to fund AI/product investments and execute deleveraging targets.
Read all positive factors
Gen Digital (GEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.68B
Dividend Yield1.82%
Average Volume (3M)7.33M
Price to Earnings (P/E)20.9
Beta (1Y)0.93
Revenue Growth21.45%
EPS Growth-4.15%
CountryUS
Employees3,400
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.64
Shares Outstanding605,663,760
10 Day Avg. Volume6,571,220
30 Day Avg. Volume7,329,656
Financial Highlights & Ratios
PEG Ratio2.68
Price to Book (P/B)7.19
Price to Sales (P/S)4.14
P/FCF Ratio13.52
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue4.10
Enterprise Value/Gross Profit5.28
Enterprise Value/Ebitda8.89
Forecast
1Y Price Target
$28.67Price Target Upside42.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.84
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 Key Performance Indicators (KPIs)
Gen Digital Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: robust top‑line growth (bookings +27% YoY, revenue +26% YoY), strong cash generation ($535M FCF), raised guidance, meaningful customer growth (78M+) and product/AI innovation (agent trust hub, Norton NEO). Notable challenges include a rapidly worsening threat environment (fake shop attacks +60% YoY, fake ads >40% of threats), modest core cyber safety revenue growth (3% YoY), ongoing investment needs that temper some margins, and outstanding refinancing and monetization uncertainties for AI agent protection. Overall, the positive operational and financial momentum outweighs the challenges, but management is balancing growth with continued investment and risk mitigation.Positive Updates
Strong bookings and revenue growth
Q3 bookings of $1.3B, up 27% year‑over‑year (10% pro forma); Q3 revenue of $1.2B, up 26% year‑over‑year (8% pro forma).
Negative Updates
Escalating scam activity and evolving threat landscape
Gen blocked >45 million fake online shop attacks last quarter (up >60% YoY); fake ads now represent >40% of consumer cyber threats—AI has accelerated attack speed and scale, creating material security headwinds.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong bookings and revenue growth
Q3 bookings of $1.3B, up 27% year‑over‑year (10% pro forma); Q3 revenue of $1.2B, up 26% year‑over‑year (8% pro forma).
Read all positive updates
Company Guidance
Gen raised fiscal 2026 guidance, now expecting full‑year revenue of $4.955–$4.975 billion (up from $4.92–$4.97B) and non‑GAAP EPS of $2.54–$2.56 (maintaining a 12–15% annual EPS growth target); Q4 guidance implies revenue of $1.24–$1.26 billion and EPS of $0.64–$0.66. Management said the outlook assumes high single‑digit pro‑forma growth, current FX through Q3, and disciplined cost management while funding Gen platform and AI investments; they reiterated a goal to drive net leverage below 3.0x by FY2027 (exited Q3 at 3.1x), highlighted strong liquidity (> $2.1B, including $619M cash and a $1.5B revolver) and robust FCF ($535M in Q3) to support continued dividends (Q4 regular dividend $0.125/share payable 03/11/2026), opportunistic buybacks, and debt paydown.Gen Digital Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
78
Positive
| 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
Neutral
20.12
Price Trends
21.12
Negative
23.66
Negative
26.04
Negative
Market Momentum
-0.49
Negative
52.62
Neutral
88.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEN, the sentiment is Neutral. The current price of 20.12 is above the 20-day moving average (MA) of 19.22, below the 50-day MA of 21.12, and below the 200-day MA of 26.04, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $113.05B | -686.05 | -4.68% | ― | 21.71% | -908.90% | |
72 Outperform | $62.38B | 31.84 | 123.64% | ― | 14.17% | 7.23% | |
67 Neutral | $21.01B | -232.70 | -3.48% | ― | 23.91% | -326.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $11.68B | 20.88 | 25.60% | 1.82% | 21.45% | -4.15% | |
56 Neutral | $72.15B | -671.68 | -7.48% | ― | 29.85% | -27.27% |
* Technology Sector Average
GEN
Gen Digital
19.37
-6.09
-23.91%
FTNT
Fortinet
86.29
-19.89
-18.73%
ZS
Zscaler
139.81
-90.66
-39.34%
CRWD
CrowdStrike Holdings
455.64
15.06
3.42%
NET
Cloudflare
217.50
93.27
75.08%
Gen Digital Corporate Events
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.