Gen Digital Reports Strong Quarterly Growth and Raises Full-Year Profit Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy GEN?
Source: Fool
- Significant Revenue Growth: Gen Digital reported a 26% year-over-year revenue increase to $1.2 billion in its fiscal Q3 2026, demonstrating strong market demand in the cybersecurity sector and solidifying its user base across over 150 countries.
- Strong Cash Flow: Year-to-date, Gen's free cash flow surged 42% to over $1 billion, primarily used for shareholder returns, including dividends and stock buybacks, reflecting the company's robust financial model and confidence in future investments.
- Upgraded Full-Year Outlook: The company raised its full-year revenue forecast to $4.955 billion to $4.975 billion, an increase from the previous estimate, indicating ongoing sales growth and market confidence.
- AI-Driven Growth Potential: CEO Vincent Pilette emphasized that with advancements in AI technology, Gen Digital can deliver personalized protection and recommendations, enhancing customer experience and maintaining a competitive edge in a rapidly evolving market.
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Analyst Views on GEN
Wall Street analysts forecast GEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GEN is 33.00 USD with a low forecast of 29.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 22.430
Low
29.00
Averages
33.00
High
37.00
Current: 22.430
Low
29.00
Averages
33.00
High
37.00
About GEN
Gen Digital Inc. is a global company. The Company offers consumer brands including Norton, Avast, LifeLock and MoneyLion, among others. It operates through two segments: Cyber Safety Platform and Trust-Based Solutions. Cyber Safety Platform includes its security, comprehensive suites, and privacy products, which deliver technology solutions and threat protection to help people navigate the digital world, securely and privately. Trust-Based Solutions includes its identity, reputation, and financial wellness products, which provide solutions and insights that allow consumers to manage their identity, reputation and finances. Its cyber safety portfolio provides protection across three categories, which includes security and performance, identity protection, and online privacy. Its security and performance provides real-time threat protection for PCs, Macs and mobile devices against malware, viruses, adware, ransomware and other emerging online threats.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gen Digital Reports Strong Quarterly Growth and Raises Full-Year Profit Forecast
- Significant Revenue Growth: Gen Digital reported a 26% year-over-year revenue increase to $1.2 billion in its fiscal Q3 2026, demonstrating strong market demand in the cybersecurity sector and solidifying its user base across over 150 countries.
- Strong Cash Flow: Year-to-date, Gen's free cash flow surged 42% to over $1 billion, primarily used for shareholder returns, including dividends and stock buybacks, reflecting the company's robust financial model and confidence in future investments.
- Upgraded Full-Year Outlook: The company raised its full-year revenue forecast to $4.955 billion to $4.975 billion, an increase from the previous estimate, indicating ongoing sales growth and market confidence.
- AI-Driven Growth Potential: CEO Vincent Pilette emphasized that with advancements in AI technology, Gen Digital can deliver personalized protection and recommendations, enhancing customer experience and maintaining a competitive edge in a rapidly evolving market.
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- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
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Gen Digital Reports Strong Earnings, Stock Rises Over 8%
- Significant Revenue Growth: Gen Digital reported a 26% year-over-year revenue increase to $1.2 billion in its fiscal Q3 2026, highlighting strong market demand in the cybersecurity sector and reinforcing its user base across over 150 countries.
- Robust Cash Flow: Year-to-date free cash flow surged 42% to over $1 billion, primarily used for shareholder dividends and stock buybacks, indicating the strength of its financial model and commitment to investor returns.
- Upgraded Full-Year Outlook: The company raised its full-year revenue forecast to $4.955 billion to $4.975 billion, up from a previous estimate of $4.92 billion to $4.97 billion, reflecting ongoing positive sales trends and market confidence.
- Personalized Protection Services: CEO Vincent Pilette emphasized that by integrating advanced intelligence across security, identity, and financial wellness, Gen Digital is delivering personalized protection and contextual recommendations, enhancing its competitive edge in the market.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Market Performance: The S&P 500 Index rose by 1.10%, and the Dow Jones Industrial Average increased by 1.60%, reaching an all-time high, reflecting positive market sentiment driven by strong tech earnings results.
- Tech Stock Recovery: Gen Digital and Roblox surged over 7% and 9%, respectively, after forecasting full-year adjusted EPS and bookings above consensus, indicating a robust recovery in the tech sector that may attract more investment.
- Consumer Confidence Boost: The University of Michigan's consumer sentiment index unexpectedly rose to 57.3, a six-month high, surpassing expectations of 55.0, reflecting optimistic consumer sentiment about the economic outlook, which supports further market gains.
- Inflation Expectations Shift: While short-term inflation expectations fell, long-term expectations ticked up slightly, indicating market concerns regarding the Fed's monetary policy, which could influence future investment decisions and market volatility.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Tech Stock Rebound: The S&P 500 rose by 1.20% and the Dow Jones Industrial Average surged by 1.48%, reaching an all-time high, driven by better-than-expected tech earnings that boosted investor confidence in the sector's recovery.
- Bitcoin Recovery: Bitcoin rebounded over 7% from a 1.25-year low, lifting cryptocurrency-exposed stocks and alleviating concerns about liquidity in the crypto market, indicating renewed investor interest in digital assets.
- Amazon Investment Concerns: Amazon's announcement of a $200 billion investment in data centers, chips, and other equipment led to a more than 9% drop in its stock, raising doubts about the long-term returns of its AI investments and potentially impacting future investor confidence.
- Earnings Season Insights: With 79% of S&P 500 companies exceeding expectations and Q4 earnings projected to grow by 8.4%, this indicates strong corporate profitability, which may provide ongoing support for the market despite economic uncertainties.
See More
Gen Digital Declares Quarterly Dividend of $0.125
- Quarterly Dividend Announcement: Gen Digital declares a quarterly dividend of $0.125 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.23% reflects the company's attractiveness in the current market environment, potentially enhancing shareholder confidence and stabilizing the stock price.
- Payment Schedule: The dividend will be payable on March 11, with a record date of February 16 and an ex-dividend date also on February 16, providing shareholders with a clear timeline that aids in financial planning.
- Earnings Beat: Gen Digital's non-GAAP EPS for Q3 2026 is reported at $0.64, beating estimates by $0.01, while revenue of $1.24 billion exceeds expectations by $10 million, showcasing the company's robust growth potential in AI and fintech sectors.
See More
Gen Digital Reports Strong Quarterly Growth and Raises Full-Year Profit Forecast
- Significant Revenue Growth: Gen Digital reported a 26% year-over-year revenue increase to $1.2 billion in its fiscal Q3 2026, demonstrating strong market demand in the cybersecurity sector and solidifying its user base across over 150 countries.
- Strong Cash Flow: Year-to-date, Gen's free cash flow surged 42% to over $1 billion, primarily used for shareholder returns, including dividends and stock buybacks, reflecting the company's robust financial model and confidence in future investments.
- Upgraded Full-Year Outlook: The company raised its full-year revenue forecast to $4.955 billion to $4.975 billion, an increase from the previous estimate, indicating ongoing sales growth and market confidence.
- AI-Driven Growth Potential: CEO Vincent Pilette emphasized that with advancements in AI technology, Gen Digital can deliver personalized protection and recommendations, enhancing customer experience and maintaining a competitive edge in a rapidly evolving market.
See More
US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
See More
Gen Digital Reports Strong Earnings, Stock Rises Over 8%
- Significant Revenue Growth: Gen Digital reported a 26% year-over-year revenue increase to $1.2 billion in its fiscal Q3 2026, highlighting strong market demand in the cybersecurity sector and reinforcing its user base across over 150 countries.
- Robust Cash Flow: Year-to-date free cash flow surged 42% to over $1 billion, primarily used for shareholder dividends and stock buybacks, indicating the strength of its financial model and commitment to investor returns.
- Upgraded Full-Year Outlook: The company raised its full-year revenue forecast to $4.955 billion to $4.975 billion, up from a previous estimate of $4.92 billion to $4.97 billion, reflecting ongoing positive sales trends and market confidence.
- Personalized Protection Services: CEO Vincent Pilette emphasized that by integrating advanced intelligence across security, identity, and financial wellness, Gen Digital is delivering personalized protection and contextual recommendations, enhancing its competitive edge in the market.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Market Performance: The S&P 500 Index rose by 1.10%, and the Dow Jones Industrial Average increased by 1.60%, reaching an all-time high, reflecting positive market sentiment driven by strong tech earnings results.
- Tech Stock Recovery: Gen Digital and Roblox surged over 7% and 9%, respectively, after forecasting full-year adjusted EPS and bookings above consensus, indicating a robust recovery in the tech sector that may attract more investment.
- Consumer Confidence Boost: The University of Michigan's consumer sentiment index unexpectedly rose to 57.3, a six-month high, surpassing expectations of 55.0, reflecting optimistic consumer sentiment about the economic outlook, which supports further market gains.
- Inflation Expectations Shift: While short-term inflation expectations fell, long-term expectations ticked up slightly, indicating market concerns regarding the Fed's monetary policy, which could influence future investment decisions and market volatility.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Tech Stock Rebound: The S&P 500 rose by 1.20% and the Dow Jones Industrial Average surged by 1.48%, reaching an all-time high, driven by better-than-expected tech earnings that boosted investor confidence in the sector's recovery.
- Bitcoin Recovery: Bitcoin rebounded over 7% from a 1.25-year low, lifting cryptocurrency-exposed stocks and alleviating concerns about liquidity in the crypto market, indicating renewed investor interest in digital assets.
- Amazon Investment Concerns: Amazon's announcement of a $200 billion investment in data centers, chips, and other equipment led to a more than 9% drop in its stock, raising doubts about the long-term returns of its AI investments and potentially impacting future investor confidence.
- Earnings Season Insights: With 79% of S&P 500 companies exceeding expectations and Q4 earnings projected to grow by 8.4%, this indicates strong corporate profitability, which may provide ongoing support for the market despite economic uncertainties.
See More
Gen Digital Declares Quarterly Dividend of $0.125
- Quarterly Dividend Announcement: Gen Digital declares a quarterly dividend of $0.125 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.23% reflects the company's attractiveness in the current market environment, potentially enhancing shareholder confidence and stabilizing the stock price.
- Payment Schedule: The dividend will be payable on March 11, with a record date of February 16 and an ex-dividend date also on February 16, providing shareholders with a clear timeline that aids in financial planning.
- Earnings Beat: Gen Digital's non-GAAP EPS for Q3 2026 is reported at $0.64, beating estimates by $0.01, while revenue of $1.24 billion exceeds expectations by $10 million, showcasing the company's robust growth potential in AI and fintech sectors.
See More
