Gen Digital (NASDAQ:GEN) Updates FY 2027 Earnings Guidance

Gen Digital (NASDAQ:GEN) issued an update on its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 2.870-2.970 for the period, compared to the consensus estimate of 2.830. The company issued revenue guidance of $5.4 billion-$5.5 billion, compared to the consensus revenue estimate of $5.4 billion. Gen Digital also updated its Q2 2027 guidance to 0.710-0.730 EPS.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on GEN shares. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $27.00 target price on shares of Gen Digital in a research note on Thursday, July 16th. Argus raised Gen Digital to a “strong-buy” rating in a research note on Friday, May 22nd. Barclays boosted their target price on shares of Gen Digital from $26.00 to $27.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Weiss Ratings raised Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. Finally, Wall Street Zen lowered shares of Gen Digital from a “buy” rating to a “hold” rating in a research note on Saturday, June 20th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, Gen Digital has a consensus rating of “Hold” and an average price target of $29.33.

Gen Digital Stock Up 0.5%

Shares of NASDAQ GEN opened at $28.10 on Friday. The business has a fifty day moving average of $25.90 and a two-hundred day moving average of $23.29. The stock has a market cap of $16.82 billion, a PE ratio of 17.78 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 52-week low of $17.78 and a 52-week high of $32.22.

Gen Digital (NASDAQ:GEN) last issued its earnings results on Thursday, August 6th. The company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.69 by $0.02. Gen Digital had a net margin of 19.46% and a return on equity of 55.47%. The company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same quarter last year, the firm earned $0.64 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. Gen Digital has set its FY 2027 guidance at 2.870-2.970 EPS and its Q2 2027 guidance at 0.710-0.730 EPS. As a group, equities research analysts expect that Gen Digital will post 2.61 earnings per share for the current fiscal year.

Gen Digital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 17th will be paid a $0.125 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a $0.50 dividend on an annualized basis and a yield of 1.8%. Gen Digital’s payout ratio is presently 31.65%.

Insider Buying and Selling at Gen Digital

In other Gen Digital news, Director John C. Chrystal acquired 3,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was purchased at an average price of $27.06 per share, with a total value of $81,180.00. Following the acquisition, the director directly owned 31,419 shares of the company’s stock, valued at approximately $850,198.14. This trade represents a 10.56% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ondrej Vlcek sold 100,000 shares of the firm’s stock in a transaction on 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 completion of the transaction, the director owned 3,832,724 shares in the company, valued at $94,974,900.72. The trade was a 2.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 9.70% of the company’s stock.

Gen Digital News Roundup

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

• Positive Sentiment: Q1 results exceeded expectations: Gen Digital reported adjusted earnings of $0.71 per share, versus the $0.69 consensus estimate, while revenue rose 6.3% year over year to $1.34 billion, ahead of the $1.31 billion forecast. EPS also increased from $0.64 in the year-ago quarter. Gen Digital Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised above analyst expectations: Gen now expects fiscal 2027 adjusted EPS of $2.87 to $2.97, compared with the $2.83 consensus estimate, and revenue of $5.4 billion to $5.5 billion, versus the $5.4 billion consensus. The higher forecast signals management expects continued momentum in its cybersecurity business. Gen Digital Raises Annual Forecast on Strong Cybersecurity Demand
• Positive Sentiment: Near-term outlook also topped EPS expectations: Fiscal second-quarter EPS guidance of $0.71 to $0.73 is above the $0.70 analyst consensus. Management described the company as accelerating in the first quarter, supported by demand for its portfolio of digital-security products. Gen Further Accelerates in Q1 FY27 and Raises Full Year Guidance
• Neutral Sentiment: Second-quarter revenue guidance was broadly in line: The $1.3 billion to $1.4 billion forecast brackets the $1.3 billion consensus estimate, making the EPS outlook the clearer upside factor. Investors will likely focus on subscriber growth, retention, and execution against the raised annual targets during the earnings call.
• Negative Sentiment: Balance-sheet leverage remains a background risk: Gen Digital’s debt-to-equity ratio is approximately 3.07 and its current ratio is 0.40, which could limit financial flexibility if growth slows or refinancing costs rise. However, the latest earnings release did not indicate a deterioration in operating performance.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Goldman Sachs Group Inc. raised its stake in shares of Gen Digital by 1.1% in the first quarter. Goldman Sachs Group Inc. now owns 2,703,712 shares of the company’s stock valued at $71,757,000 after buying an additional 28,522 shares during the period. Great Lakes Advisors LLC purchased a new stake in Gen Digital during the 1st quarter valued at $205,000. Woodline Partners LP boosted its position in Gen Digital by 37.8% during the 1st quarter. Woodline Partners LP now owns 27,590 shares of the company’s stock valued at $732,000 after buying an additional 7,562 shares during the period. Focus Partners Wealth raised its stake in shares of Gen Digital by 9.7% during the first quarter. Focus Partners Wealth now owns 22,347 shares of the company’s stock valued at $593,000 after acquiring an additional 1,980 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings in shares of Gen Digital by 221.5% during the first quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock worth $46,000 after purchasing an additional 1,183 shares during the period. 81.38% of the stock is owned by institutional investors.

Gen Digital Company Profile

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.