Gen Digital (GEN) AI Stock Analysis

Gen Digital

(BMV:GEN)

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Positive Factors

Recurring customer scale and retentionThe large paid base and improving retention from multiproduct adoption support recurring subscription revenue and better customer economics. Higher-tier engagement can increase lifetime value, strengthen cross-selling, and make the business less dependent on continually acquiring new customers.

Negative Factors

High financial leverageElevated leverage increases financial risk and can constrain capital allocation if operating conditions weaken. Interest, refinancing, and debt-repayment demands may compete with investment or shareholder returns, even though current cash generation provides some offset.

Gen Digital (GEN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 17.44B
Dividend Yield: 2.19%
Average Volume (3M): 169
Price to Earnings (P/E): 14.6
Beta (1Y): -0.18
Revenue Growth: 5.02%
EPS Growth: 93.47%
Country: Mexico
Employees: 3,900
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

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 flagsh...

Gen Digital Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q2-2027)|% Change Since:0.00%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was strongly positive, with double-digit revenue, bookings, operating income, EPS, and free-cash-flow performance; record customer scale; strong growth in Trust-Based Solutions and partner channels; stable 50% consolidated operating margins; and raised fiscal 2027 guidance. The main challenges were that Cyber Safety growth remained at 5%, MoneyLion One adoption was not yet material, agentic AI revenue contribution remains several periods away, and the company is responding to rapidly increasing scam and breach activity.

Positive Updates

Another Beat-and-Raise Quarter

Q2 revenue grew 12% to $1.37 billion, exceeding the high end of guidance. Bookings increased 10% to $1.35 billion, marking the sixth consecutive quarter of double-digit bookings growth, while operating profit dollars rose 10% and non-GAAP diluted EPS increased 19% year-over-year to $0.74, above the guided range of $0.71 to $0.73.

Negative Updates

Cyber Safety Growth Remains Mid-Single Digit

Cyber Safety revenue grew 5%, and management continues to frame the segment around mid-single-digit revenue growth. The CEO said there could be more upside, particularly from agentic solutions, but stated that the company wants to see that opportunity develop before changing its outlook.

Company Guidance

Gen expects Q3 revenue of $1.365 billion to $1.39 billion, up 10% to 12%, and Q3 non-GAAP EPS of $0.73 to $0.75, representing growth of 15% to 18%; fiscal 2027 revenue guidance is $5.465 billion to $5.515 billion, reflecting growth of 10% to 11% versus prior guidance of 9% to 11%, while fiscal 2027 non-GAAP EPS guidance is $2.93 to $2.98, up 16% to 18% year-over-year versus the prior guidance range of 14% to 18%. Gen expects high teens earnings growth this year, supports its mid- to high teens EPS growth outlook for fiscal year '27, will manage Cyber Safety to mid-single-digit revenue growth and a 60% plus operating margin, and will manage Trust-Based Solutions on a Rule of 50 with 30% margin for 20% growth; agentic capabilities are not expected to contribute materially to revenue in this fiscal year, while financial wellness synergies are expected to ramp in the second half and run their run rate or accelerate their run rate through fiscal year '28.

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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:GEN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRWD	80Outperform	$256.42B	7114.49	1.29%	―	24.30%	―
PANW	73Outperform	$299.56B	795.37	1.68%	―	24.49%	-68.55%
CHKP	72Outperform	$15.53B	15.36	36.43%	―	4.64%	25.51%
FTNT	72Outperform	$99.84B	43.90	151.52%	―	20.23%	26.26%
ZS	71Outperform	$38.78B	-609.82	-2.76%	―	25.42%	-47.39%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

MX:GEN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:GEN	Gen Digital Inc.	405.00	-66.04	-14.02%
CHKP	Check Point Software	152.11	-42.48	-21.83%
FTNT	Fortinet	136.08	48.56	55.48%
PANW	Palo Alto Networks	365.87	146.64	66.89%
ZS	Zscaler	237.83	-98.44	-29.27%
CRWD	Crowdstrike Holdings	250.43	112.45	81.50%

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.

Gen Digital AI Stock Analysis