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Gen Digital
(NASDAQ:GEN)
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Rating:69Neutral
Price Target:
$25.00
▼(-15.65% Downside)
Action:Reiterated
Date:10/10/26
GEN’s score is driven primarily by solid underlying financial performance (high margins and strong free cash flow) and a bullish earnings update with raised guidance and durable operating margins. These positives are offset by elevated leverage and clearly bearish technicals (price below key moving averages with negative MACD), while valuation and dividend provide moderate support.
Positive Factors
Recurring subscription model
Recurring subscriptions, renewals, and multi-service bundles provide a durable revenue foundation and reduce dependence on one-time transactions. Gen can deepen customer relationships through higher-tier, multi-device, family, privacy, and identity offerings, supporting retention and revenue visibility.
Negative Factors
Elevated leverage and interest burden
High leverage leaves Gen more sensitive to refinancing costs, interest rates, and operating setbacks than a less indebted software company. Although cash generation and recent debt paydown help, the capital structure can constrain flexibility and divert cash from growth or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription model
Recurring subscriptions, renewals, and multi-service bundles provide a durable revenue foundation and reduce dependence on one-time transactions. Gen can deepen customer relationships through higher-tier, multi-device, family, privacy, and identity offerings, supporting retention and revenue visibility.
Read all positive factors
Gen Digital Key Performance Indicators (KPIs)
Any
Bookings
Measures the total value of contracts signed in a period, indicating future revenue potential and demand for the company's offerings.
Measures the total value of contracts signed in a period, indicating future revenue potential and demand for the company's offerings.
Data provided by:
The Fly
The FlyGen Digital (GEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.44B
Dividend Yield2.07%
Average Volume (3M)11.10M
Price to Earnings (P/E)13.9
Beta (1Y)0.88
Revenue Growth20.16%
EPS Growth79.73%
CountryUS
Employees3,900
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.74
Shares Outstanding598,587,040
10 Day Avg. Volume8,119,087
30 Day Avg. Volume11,103,491
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 Cap1.64
Enterprise Value/Revenue4.67
Enterprise Value/Gross Profit5.98
Enterprise Value/Ebitda10.28
Forecast
1Y Price Target
$32.50Price Target Upside9.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.93
Revenue Forecast (FY)$5.43B
Gen Digital Business Overview & Revenue Model
Company Description
Gen Digital Inc. delivers a wide array of cyber safety solutions for individual users across the globe, with operations spanning the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific region, and Japan. Its fla...
How the Company Makes Money
Gen Digital primarily makes money by selling subscription-based consumer digital safety products and services under its brand portfolio. The core revenue model is recurring subscriptions (typically monthly or annual) for bundled and standalone off...
Gen Digital Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call portrayed strong, broad-based growth with doubled-down investment in AI-enabled products and embedded financial wellness. Revenue and bookings grew 11% with EPS up 19%; Trust-Based Solutions and Engine Marketplace showed particularly robust expansion (bookings +25%, Engine >$0.5B run rate). Cash flow, liquidity, margin durability (50% operating margin) and shareholder returns were highlighted as strengths. The primary headwinds are mix-driven gross margin pressure from marketplace revenue-share models, elevated interest expense, and increased R&D and go-to-market investment that may moderate near-term EPS flow-through. New initiatives (MoneyLion One, agentic AI monetization) are promising but early-stage, introducing timing risk for some of the upside. Overall, positives (growth, margins, cash flow, product/AI momentum) substantially outweigh the manageable mix and timing risks.Positive Updates
Revenue and Bookings Growth
Revenue grew 11% year-over-year to $1.34 billion and bookings grew 11% year-over-year to $1.28 billion (Q1). Company raised fiscal 2027 revenue guidance to $5.375B-$5.475B (9%-11% growth) and Q2 revenue guidance to $1.325B-$1.35B (9%-11% growth).
Negative Updates
Cyber Safety Growth Lags Trust-Based Solutions
Cyber Safety bookings and revenue grew only ~4% (mid-single digits) in Q1, noticeably slower than Trust-Based Solutions (bookings +25%, revenue +24%), indicating the faster incremental growth is coming from TBS rather than core device security.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue and Bookings Growth
Revenue grew 11% year-over-year to $1.34 billion and bookings grew 11% year-over-year to $1.28 billion (Q1). Company raised fiscal 2027 revenue guidance to $5.375B-$5.475B (9%-11% growth) and Q2 revenue guidance to $1.325B-$1.35B (9%-11% growth).
Read all positive updates
Company Guidance
Gen raised fiscal 2027 guidance, now calling for revenue of $5.375B–$5.475B (up 9%–11% YoY) and non‑GAAP EPS of $2.87–$2.97 (up 14%–18% YoY), with Q2 revenue guided to $1.325B–$1.35B (9%–11%) and Q2 non‑GAAP EPS $0.71–$0.73 (15%–18%); that raise follows a strong Q1 (bookings $1.28B, +11%; revenue $1.34B, +11%; non‑GAAP EPS $0.71, +19%) and operating income of $668M (+9%) with blended operating margin steady at 50%. Management highlighted segment economics underpinning the outlook—Cyber Safety margins ~61% with bookings/revenue up ~4% (mid‑single digits), Trust‑Based Solutions bookings +25% and revenue +24% with a 30% segment margin—and pointed to Engine momentum (>$500M revenue run‑rate and >425M annual network inquiries), connected financial accounts >110M, paid customers ~81M, Norton cross‑sell 27%, higher‑tier Norton annualized bookings ~$500M, ARPU up 8%–10% vs. two years ago, membership adoption >60% and near‑record retention. The company also cited strong cash generation and balance sheet metrics supporting the plan: ending cash $564M, operating cash flow $434M, free cash flow $430M, >$2B liquidity including a $1.5B revolver, net leverage 2.95x, $45M debt paydown, 603M weighted average shares, and $181M returned to shareholders in Q1 ($100M repurchases, $81M dividends; quarterly dividend $0.125/share).Gen Digital Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.08B | 5.00B | 3.94B | 3.80B | 3.32B | 2.80B |
| Gross Profit | 3.96B | 3.92B | 3.16B | 3.07B | 2.73B | 2.39B |
| EBITDA | 2.30B | 1.44B | 2.03B | 1.60B | 1.51B | 1.31B |
| Net Income | 1.05B | 973.00M | 643.00M | 607.00M | 1.33B | 836.00M |
Balance Sheet | ||||||
| Total Assets | 15.64B | 15.59B | 15.49B | 15.79B | 15.95B | 6.94B |
| Cash, Cash Equivalents and Short-Term Investments | 564.00M | 402.00M | 1.01B | 846.00M | 750.00M | 1.89B |
| Total Debt | 8.18B | 8.26B | 8.31B | 8.65B | 9.82B | 3.83B |
| Total Liabilities | 12.99B | 12.98B | 13.23B | 13.65B | 13.75B | 7.04B |
| Stockholders Equity | 2.66B | 2.61B | 2.27B | 2.14B | 2.20B | -93.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.52B | 1.21B | 2.04B | 751.00M | 968.00M |
| Operating Cash Flow | 1.57B | 1.54B | 1.22B | 2.06B | 757.00M | 974.00M |
| Investing Cash Flow | -153.00M | -1.01B | -100.00M | 2.00M | -6.55B | 326.00M |
| Financing Cash Flow | -1.69B | -1.13B | -970.00M | -1.96B | 4.68B | -333.00M |
Gen Digital Technical Analysis
Neutral
29.64
Price Trends
26.77
Negative
26.39
Negative
24.19
Positive
Market Momentum
-0.59
Negative
51.71
Neutral
66.53
Neutral
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 29.64 is above the 20-day moving average (MA) of 22.99, above the 50-day MA of 26.77, and above the 200-day MA of 24.19, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.53 is Neutral, 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 37 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 | $232.81B | 6,799.43 | 1.29% | ― | 24.30% | ― | |
78 Outperform | $125.41B | 60.86 | 187.95% | ― | 18.77% | 12.93% | |
72 Outperform | $14.64B | 14.49 | 36.43% | ― | 4.64% | 25.51% | |
70 Outperform | $278.35B | 754.89 | 1.68% | ― | 24.49% | -68.55% | |
69 Neutral | $14.44B | 13.86 | 41.89% | 2.07% | 20.16% | 79.73% | |
65 Neutral | $34.98B | -593.15 | -2.76% | ― | 25.42% | -47.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GEN
Gen Digital
24.89
-1.77
-6.63%
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ZS
Zscaler
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CRWD
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237.94
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Gen Digital Corporate Events
Business Operations and StrategyExecutive/Board Changes
Gen Digital Adds Talbott Roche to Board of Directors
Positive
Oct 9, 2026
On October 6, 2026, Gen Digital’s board appointed Talbott Roche as an independent director, effective immediately, with standard non-employee director compensation and entry into the company’s customary indemnification agreement under ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Gen Digital Outlines Acquisition Strategy and Forward Outlook
Neutral
Sep 28, 2026
On September 28, 2026, Gen Digital Inc. CEO Vincent Pilette used a LinkedIn post to discuss the company’s acquisition strategy as well as aspects of its financial outlook and guidance, emphasizing how deals and partnerships fit into its broa...
Executive/Board ChangesShareholder Meetings
Gen Digital Faces Shareholder Pushback on Executive Pay
Negative
Sep 11, 2026
Gen Digital held its 2026 Annual Meeting of Stockholders on September 9, 2026, where shareholders elected nine directors, including Vincent Pilette and Ondrej Vlcek, to serve on the Board until the next annual meeting. Stockholders also ratified t...
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.