Gen Digital (NASDAQ:GEN) Releases Earnings Results

07 May 2026, 23:28 by Renee Jackson · The Cerbat Gem

Gen Digital (NASDAQ:GEN – Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.67 earnings per share for the quarter, beating analysts’ consensus estimates of $0.65 by $0.02, FiscalAI reports. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. Gen Digital had a return on equity of 56.76% and a net margin of 12.76%.The company’s revenue was up 27.0% on a year-over-year basis. During the same quarter last year, the business posted $0.59 EPS. Gen Digital updated its Q1 2027 guidance to 0.680-0.700 EPS and its FY 2027 guidance to 2.850-2.950 EPS.

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

Gen reported record FY2026 results with $5.0B+ revenue and record bookings of $5.1B, non-GAAP EPS of $2.56 (+15%), $1.5B free cash flow, and achieved 3x net leverage a year ahead of plan while raising FY2027 guidance to 8%–10% revenue growth and mid‑teens EPS growth.
The company is shifting to a unified data + agentic AI platform (Gen Stack, Genie, Agent Trust Hub, Norton Neo) and partnerships with frontier model providers to become the consumer “trust layer” for AI agents, which management says should unlock new product and monetization paths.
Trust-based solutions are the growth engine: MoneyLion exceeded expectations (≈40%+ revenue growth), LifeLock mobile revenue grew ~50% with NPS and retention gains, and Engine has tripled revenue in three years with new embeds (Equifax, Microsoft Copilot) and ~400M annual inquiries.
Cyber Safety remains the foundation with mid-single-digit growth, ~79M customers, ~60% membership adoption and a 61% segment margin, but management highlights increasing AI-driven threats (deepfakes, agentic scams) that require continued investment.
Balance sheet and capital allocation are strong: $1.5B FCF, ~$6B returned to shareholders historically, recent $200M buyback and $200M debt paydown, a $0.125 quarterly dividend, and $2.1B remaining buyback authorization.

Gen Digital Price Performance

Shares of NASDAQ GEN traded up $0.63 during midday trading on Thursday, hitting $20.19. The stock had a trading volume of 14,252,046 shares, compared to its average volume of 6,286,646. The company has a market capitalization of $12.23 billion, a PE ratio of 20.81 and a beta of 1.10. The stock has a 50 day simple moving average of $20.15 and a 200-day simple moving average of $23.90. Gen Digital has a 1 year low of $17.78 and a 1 year high of $32.22. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.50.

Hedge Funds Weigh In On Gen Digital

Hedge funds and other institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. lifted its position in shares of Gen Digital by 221.5% in the first quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock valued at $46,000 after acquiring an additional 1,183 shares in the last quarter. MUFG Securities EMEA plc acquired a new position in shares of Gen Digital during the 2nd quarter worth approximately $47,000. Brown Brothers Harriman & Co. boosted its holdings in shares of Gen Digital by 47.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock worth $50,000 after purchasing an additional 568 shares during the last quarter. Larson Financial Group LLC boosted its holdings in shares of Gen Digital by 20.9% during the 3rd quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock worth $64,000 after purchasing an additional 390 shares during the last quarter. Finally, Quarry LP acquired a new position in Gen Digital in the fourth quarter valued at approximately $90,000. Hedge funds and other institutional investors own 81.38% of the company’s stock.

Key Stories Impacting Gen Digital

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

Positive Sentiment: Q4 results beat estimates — Gen reported EPS of $0.67 vs. consensus ~$0.65 and revenue of $1.28B (≈+27% YoY), with improved margins and strong operating profit growth; these beats are the primary catalyst for the stock rally. Gen Digital (GEN) Q4 Earnings and Revenues Beat Estimates
Positive Sentiment: Raised guidance — Gen lifted FY‑2027 EPS to $2.85–2.95 (above consensus ~2.82) and Q1 EPS to $0.68–0.70, and guided revenue above Street expectations; upward guidance supports continued investor optimism. Gen Digital forecasts annual results above estimates on strong cybersecurity demand
Positive Sentiment: Strong FY26 performance highlight — company crossed $5B in FY26 revenue with accelerating growth and reiterated demand for consumer cybersecurity services, reinforcing the secular growth story. Gen Crosses $5B in FY26 Revenue
Neutral Sentiment: Analyst price targets mixed — recent targets range around $22–$26 (median ~$24), implying modest upside from current levels but varied analyst views. Gen Digital Inc. (GEN) Stock Rises on Q4 2026 Earnings
Negative Sentiment: Balance sheet/cash concerns — cash & cash equivalents fell materially year‑over‑year (Quiver reports ~59% decline) and debt remains elevated (debt/equity ~3.5 in public filings), which could amplify investor sensitivity to execution risk. Gen Digital Inc. (GEN) Stock Rises on Q4 2026 Earnings
Negative Sentiment: Insider selling noted — some insider sales were reported in the period, which may concern timing-sensitive investors even though insider activity is limited relative to float. Gen Digital Inc. (GEN) Stock Rises on Q4 2026 Earnings

Wall Street Analyst Weigh In

GEN has been the subject of a number of recent research reports. Wells Fargo & Company initiated coverage on Gen Digital in a research note on Tuesday, March 3rd. They set an “equal weight” rating and a $22.00 price objective for the company. Barclays reduced their price objective on Gen Digital from $32.00 to $26.00 and set an “equal weight” rating for the company in a research note on Monday, April 13th. Zacks Research upgraded Gen Digital from a “strong sell” rating to a “hold” rating in a research note on Wednesday, February 18th. Jefferies Financial Group lowered Gen Digital from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Gen Digital in a research note on Thursday, January 22nd. Two equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Gen Digital has an average rating of “Hold” and a consensus price target of $31.86.

Check Out Our Latest Research Report 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.