Gen Digital (NASDAQ:GEN) Announces Earnings Results, Beats Estimates By $0.02 EPS

08 Aug 2026, 22:28 by Jessica Moore · The Cerbat Gem

Gen Digital (NASDAQ:GEN – Get Free Report) issued its earnings results on Thursday. The company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.69 by $0.02, FiscalAI reports. The firm had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.31 billion. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. The business’s quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.64 earnings per share. Gen Digital updated its FY 2027 guidance to 2.870-2.970 EPS and its Q2 2027 guidance to 0.710-0.730 EPS.

Here are the key takeaways from Gen Digital’s conference call:

Q1 exceeded expectations: bookings and revenue rose 11% to $1.28 billion and $1.34 billion, respectively, while non-GAAP EPS increased 19% to $0.71.
Gen raised its fiscal 2027 outlook to 9%–11% revenue growth and 14%–18% non-GAAP EPS growth, up from prior guidance of 8%–10% and mid-teens EPS growth.
Trust-Based Solutions remained the primary growth engine, with bookings up 25% and revenue up 24%, driven by LifeLock, MoneyLion’s personal financial management products, and Engine Marketplace, which surpassed a $500 million annual revenue run rate.
Cyber Safety delivered steady 4% growth with a 61% operating margin, while paid customers reached 81 million and cross-selling into higher-tier memberships continued to improve.
Gross margin declined slightly to 82% because of mix, as faster-growing Engine Marketplace categories carry lower gross margins; management expects this dynamic to continue even though operating margins remained stable at 50%.

Gen Digital Stock Up 3.8%

NASDAQ GEN traded up $1.07 on Friday, reaching $29.17. The company had a trading volume of 11,321,132 shares, compared to its average volume of 4,184,866. The company’s fifty day moving average is $25.96 and its 200-day moving average is $23.33. The firm has a market capitalization of $17.46 billion, a price-to-earnings ratio of 16.96 and a beta of 1.21. The company has a debt-to-equity ratio of 3.07, a quick ratio of 0.40 and a current ratio of 0.40. Gen Digital has a 1-year low of $17.78 and a 1-year high of $32.22.

Gen Digital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 17th will be given a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Monday, August 17th. Gen Digital’s payout ratio is currently 31.65%.

Key Gen Digital News

Here are the key news stories impacting Gen Digital this week:

Positive Sentiment: Quarterly results exceeded expectations. Gen Digital reported fiscal Q1 2027 adjusted EPS of $0.71, versus the $0.69 consensus estimate, while revenue increased 6.3% year over year to $1.34 billion, topping expectations of $1.31 billion. EPS also improved from $0.64 a year earlier. Gen Digital quarterly earnings report
Positive Sentiment: Management raised fiscal 2027 targets. Gen Digital now expects full-year EPS of $2.87 to $2.97 and revenue of $5.4 billion to $5.5 billion, above analyst consensus of $2.83 EPS and approximately $5.4 billion in revenue. Second-quarter EPS guidance of $0.71 to $0.73 also exceeds the $0.70 consensus estimate. Reuters report on Gen Digital’s raised forecast
Positive Sentiment: Cybersecurity demand remains supportive. The company cited strong demand for its family of digital-security products, double-digit bookings growth and increasing online threats powered by artificial intelligence. These trends support recurring revenue and Gen Digital’s growth outlook. Gen Digital fiscal Q1 2027 results release
Positive Sentiment: Barclays raised its price target from $27 to $32 while maintaining an Equal Weight rating, suggesting additional potential upside based on the firm’s updated valuation. Benzinga analyst update
Neutral Sentiment: Gen Digital declared a quarterly dividend of $0.125 per share. Investors of record on August 17 will receive payment on September 9. The dividend provides ongoing shareholder income, although the 1.7% yield is unlikely to be the primary catalyst for the stock.
Negative Sentiment: Wells Fargo raised its price target from $22 to $28 but retained an Equal Weight rating. The new target remains below the stock’s current trading level, signaling valuation caution despite the improved earnings outlook. Benzinga analyst update

Insider Activity

In other news, Director Ondrej Vlcek sold 100,000 shares of the business’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $24.78, for a total value of $2,478,000.00. Following the sale, the director directly owned 3,832,724 shares in the company, valued at $94,974,900.72. The trade was a 2.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director John C. Chrystal acquired 3,000 shares of Gen Digital stock in a transaction dated Thursday, June 4th. The shares were purchased at an average cost of $27.06 per share, with a total value of $81,180.00. Following the completion of the transaction, the director directly owned 31,419 shares of the company’s stock, valued at $850,198.14. This trade represents a 10.56% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Gen Digital

A number of large investors have recently bought and sold shares of the company. State Street Corp raised its holdings in shares of Gen Digital by 3.4% in the third quarter. State Street Corp now owns 30,558,806 shares of the company’s stock valued at $867,565,000 after purchasing an additional 1,015,755 shares during the last quarter. Ameriprise Financial Inc. grew its position in Gen Digital by 6.7% in the second quarter. Ameriprise Financial Inc. now owns 22,473,917 shares of the company’s stock valued at $660,730,000 after purchasing an additional 1,406,869 shares in the last quarter. First Trust Advisors LP grew its position in Gen Digital by 22.3% in the fourth quarter. First Trust Advisors LP now owns 19,941,546 shares of the company’s stock valued at $542,211,000 after purchasing an additional 3,640,451 shares in the last quarter. Boston Partners increased its stake in Gen Digital by 4.3% in the 3rd quarter. Boston Partners now owns 13,689,577 shares of the company’s stock valued at $388,610,000 after buying an additional 565,836 shares during the last quarter. Finally, Invesco Ltd. lifted its position in Gen Digital by 9.7% during the 4th quarter. Invesco Ltd. now owns 9,975,365 shares of the company’s stock worth $271,230,000 after buying an additional 878,662 shares in the last quarter. Institutional investors and hedge funds own 81.38% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Weiss Ratings raised shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. Wells Fargo & Company lifted their target price on Gen Digital from $22.00 to $28.00 and gave the stock an “equal weight” rating in a report on Friday. Royal Bank Of Canada boosted their target price on Gen Digital from $27.00 to $30.00 and gave the company a “sector perform” rating in a research note on Friday. Argus upgraded Gen Digital to a “strong-buy” rating in a report on Friday, May 22nd. Finally, Wall Street Zen raised Gen Digital from a “hold” rating to a “buy” rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $31.67.

View Our Latest Analysis on GEN

Gen Digital Company Profile

(Get Free Report)

Gen Digital (NASDAQ: GEN) is a global cybersecurity company specializing in consumer- and small-business-focused security, privacy, and identity protection solutions. The company offers a suite of products designed to safeguard devices, networks, and personal information against malware, ransomware, phishing attacks and other digital threats. With a focus on user-friendly interfaces and cross-platform compatibility, Gen Digital develops antivirus software, VPN services, parental controls, password management tools, and comprehensive identity-theft monitoring services.

Gen Digital traces its origins to the consumer software division of Symantec Corporation, which was spun off in late 2019 under the NortonLifeLock name.