Gen Digital (NASDAQ:GEN) Posts Earnings Results, Beats Expectations By $0.02 EPS

Gen Digital (NASDAQ:GEN) issued its earnings results on Wednesday. The company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.02, FiscalAI reports. Gen Digital had a return on equity of 57.97% and a net margin of 23.07%. The company had revenue of $1.37 billion during the quarter, compared to analysts’ expectations of $1.34 billion. During the same period in the prior year, the business earned $0.62 EPS. The firm’s quarterly revenue was up 12.2% on a year-over-year basis.

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

• Gen raised its fiscal 2027 outlook, now expecting revenue of $5.465–$5.515 billion, up 10%–11%, and non-GAAP EPS of $2.93–$2.98, up 16%–18%.
• Q2 revenue grew 12% to $1.37 billion, bookings rose 10%, and EPS increased 19% to $0.74; operating margin held at 50% while free cash flow reached $323 million.
• Trust-Based Solutions revenue grew 26%, supported by financial wellness, Engine marketplace activity, and partner channels; partner revenue accelerated 40% to $295 million, while the employee-benefits pipeline exceeded $30 million.
• Management highlighted strong customer and operating metrics, including 83 million paid customers, record Norton 360 adoption, higher renewal rates, and AI-driven efficiencies in marketing, customer support, and engineering.
• Gen is investing in Safe AI, agent protection, LifeLock resolution tools, and MoneyLion One, but said agentic AI is not expected to contribute materially to revenue this fiscal year; management also stated it is not pursuing a transformative acquisition currently.

Gen Digital Stock Performance

GEN stock traded up $0.47 during trading on Friday, hitting $28.67. The company had a trading volume of 3,492,267 shares, compared to its average volume of 7,213,794. The firm has a 50-day moving average price of $26.48 and a 200-day moving average price of $24.38. Gen Digital has a 1-year low of $17.78 and a 1-year high of $31.65. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.00. The firm has a market cap of $17.16 billion, a PE ratio of 14.41, a price-to-earnings-growth ratio of 0.76 and a beta of 1.26.

Gen Digital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 9th. Shareholders of record on Monday, November 16th will be given a dividend of $0.1250 per share. This represents a $0.50 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Monday, November 16th. Gen Digital’s dividend payout ratio (DPR) is presently 29.07%.

Insider Activity

In related news, COO Bryan Seuk Ko sold 28,248 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $30.67, for a total value of $866,366.16. Following the sale, the chief operating officer owned 744,262 shares in the company, valued at $22,826,515.54. This represents a 3.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Travis Witteveen sold 30,000 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $29.42, for a total transaction of $882,600.00. Following the sale, the insider directly owned 496,545 shares in the company, valued at $14,608,353.90. This represents a 5.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 558,508 shares of company stock worth $16,356,093 in the last 90 days. 9.70% of the stock is currently owned by corporate insiders.

Trending Headlines about Gen Digital

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

• Positive Sentiment: Q2 beat and double-digit growth: Adjusted earnings reached $0.74 per share versus the $0.72 consensus, while revenue rose 12.2% year over year to $1.37 billion, exceeding the $1.34 billion estimate. Gen Digital Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Outlook raised: Gen increased its fiscal 2027 revenue and earnings expectations, citing strong cybersecurity demand. Its fiscal third-quarter EPS guidance of $0.73-$0.75 is above the $0.72 consensus, while revenue guidance of approximately $1.4 billion is in line with estimates. Gen Digital raises annual revenue forecast
• Positive Sentiment: Growth catalysts remain strong: Partner-channel revenue grew 40% to $295 million, financial-wellness demand supported results, and the company reported record Cyber Safety margins. Management also said it is not pursuing a transformative acquisition, reducing concerns about a large, potentially dilutive deal. Gen Digital Surges on Earnings Beat
• Positive Sentiment: Analyst support and dividend: Morgan Stanley raised its price target to $34 from $32. Gen also declared a quarterly dividend of $0.125 per share, or $0.50 annualized, providing continued shareholder income.
• Neutral Sentiment: Royal Bank of Canada raised its target to $27 but maintained a “sector perform” rating, indicating that valuation and near-term upside may be more limited after the rally. Royal Bank of Canada ratings
• Negative Sentiment: Some coverage has shifted attention to margin sustainability and whether the recent earnings strength is already reflected in the stock, which could create volatility despite the improved fundamentals.

Wall Street Analyst Weigh In

Several research firms have weighed in on GEN. Royal Bank Of Canada lifted their target price on Gen Digital from $24.00 to $27.00 and gave the company a “sector perform” rating in a research report on Thursday. Barclays upped their target price on shares of Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a research note on Friday, August 7th. Wall Street Zen lowered shares of Gen Digital from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. Weiss Ratings raised shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Finally, Wells Fargo & Company boosted their price target on shares of Gen Digital from $22.00 to $28.00 and gave the stock an “equal weight” rating in a research note on Friday, August 7th. One 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. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $31.60.

Gen Digital Company Profile

Gen Digital Inc (NASDAQ: GEN) is a cybersecurity company that provides digital safety, privacy, and identity protection products for consumers. Its services are designed to help protect devices, personal information, online accounts, and digital identities from malware, fraud, identity theft, scams, and other cyber threats.

The company operates a portfolio of consumer brands that includes Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner. Its offerings include antivirus and device security software, virtual private network services, password management, identity theft monitoring and restoration support, privacy tools, scam protection, and performance and optimization utilities.

Gen Digital serves customers internationally through direct subscriptions and distribution partnerships.