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 earnings per share 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.

Wall Street Analysts Forecast Growth

GEN has been the subject of several research reports. Jefferies Financial Group lowered Gen Digital from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Barclays raised their price objective on Gen Digital from $27.00 to $32.00 and gave the company an “equal weight” rating in a research report on Friday. Wells Fargo & Company upped their target price on shares of Gen Digital from $22.00 to $28.00 and gave the stock an “equal weight” rating in a research report on Friday. Argus raised shares of Gen Digital to a “strong-buy” rating in a research note on Friday, May 22nd. Finally, Royal Bank Of Canada upped their price objective on shares of Gen Digital from $27.00 to $30.00 and gave the stock a “sector perform” rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $31.67.

Gen Digital Stock Up 3.8%

Shares of Gen Digital stock opened at $29.17 on Friday. The company has a 50-day simple moving average of $25.96 and a two-hundred day simple moving average of $23.33. The stock has a market capitalization of $17.46 billion, a PE ratio of 16.96 and a beta of 1.21. Gen Digital has a 52-week low of $17.78 and a 52-week high of $32.22. 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 (NASDAQ:GEN) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.71 earnings per share for the quarter, topping analysts’ consensus estimates of $0.69 by $0.02. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. The company had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.31 billion. During the same period in the previous year, the business earned $0.64 EPS. The firm’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. On average, analysts anticipate that Gen Digital will post 2.61 EPS 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. Stockholders of record on Monday, August 17th will be issued a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Monday, August 17th. Gen Digital’s dividend payout ratio (DPR) is presently 31.65%.

Insider Buying and Selling

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

Key Stories Impacting Gen Digital

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. MUFG Securities EMEA plc bought a new position in shares of Gen Digital in the second quarter worth about $47,000. Geneos Wealth Management Inc. increased its stake in Gen Digital by 221.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock worth $46,000 after buying an additional 1,183 shares in the last quarter. Brown Brothers Harriman & Co. increased its stake in Gen Digital by 47.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock worth $50,000 after buying an additional 568 shares in the last quarter. Larson Financial Group LLC raised its holdings in Gen Digital by 20.9% during the third quarter. Larson Financial Group LLC now owns 2,255 shares of the company’s stock valued at $64,000 after acquiring an additional 390 shares during the period. Finally, Quarry LP bought a new stake in Gen Digital during the fourth quarter valued at about $90,000. Hedge funds and other institutional investors own 81.38% of the company’s stock.

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.