Gen Digital (NASDAQ:GEN) Issues Earnings Results

Gen Digital (NASDAQ:GEN) issued its quarterly earnings data on Thursday. The company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.01, FiscalAI reports. Gen Digital had a return on equity of 57.09% and a net margin of 12.74%.The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. Gen Digital updated its Q4 2026 guidance to 0.640-0.660 EPS and its FY 2026 guidance to 2.540-2.560 EPS.

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

• Gen beat guidance in Q3 with bookings of $1.3B (+27% YoY), revenue of $1.2B (+26% YoY), non?GAAP EPS +14% YoY, generated $535M free cash flow and returned ~ $700M to shareholders while raising FY26 revenue and EPS guidance.
• The company is positioning itself as a security leader for the AI era, launching a beta Agent Trust Hub and the Norton Neo safe AI browser and deploying on?device deepfake and anti?scam defenses to monetize growing AI?agent risk.
• MoneyLion showed strong traction (~40% revenue growth) and Engine marketplace scale (?360M inquiries annually), and Gen announced an expanded partnership with Equifax to enrich offers and drive marketplace monetization.
• Operationally Gen reports >78M paid customers, rising adoption of higher?tier Norton 360 with LifeLock (conversion near 45%) and improving cross?sell (Norton >26%), with cyber safety levering ~61% segment margin and 51% overall operating margin.
• Balance sheet shows $619M cash and ~$2.1B liquidity but net leverage of 3.1x EBITDA and $131M interest expense; management is repaying debt, exploring TLA refinancing, and targeting <3x net leverage by FY27.

Gen Digital Price Performance

GEN stock traded down $0.50 during midday trading on Thursday, hitting $22.43. The company’s stock had a trading volume of 10,320,214 shares, compared to its average volume of 5,583,577. The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 3.43. Gen Digital has a 12 month low of $22.14 and a 12 month high of $32.22. The company has a 50 day moving average of $26.38 and a two-hundred day moving average of $27.75. The firm has a market capitalization of $13.83 billion, a price-to-earnings ratio of 24.38, a price-to-earnings-growth ratio of 0.75 and a beta of 1.09.

Insiders Place Their Bets

In other Gen Digital news, Director Ondrej Vlcek sold 113,674 shares of the stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $27.12, for a total transaction of $3,082,838.88. Following the transaction, the director directly owned 3,932,980 shares of the company’s stock, valued at $106,662,417.60. This trade represents a 2.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John C. Chrystal bought 5,000 shares of the business’s stock in a transaction on Thursday, November 13th. The stock was bought at an average cost of $27.14 per share, with a total value of $135,700.00. Following the completion of the purchase, the director directly owned 28,419 shares in the company, valued at approximately $771,291.66. The trade was a 21.35% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 9.30% of the company’s stock.

Institutional Trading of Gen Digital

Several large investors have recently modified their holdings of the business. Geneos Wealth Management Inc. grew its position in Gen Digital by 221.5% during the first quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock valued at $46,000 after purchasing an additional 1,183 shares in the last quarter. MUFG Securities EMEA plc bought 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% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,756 shares of the company’s stock worth $50,000 after acquiring an additional 568 shares in the last quarter. Larson Financial Group LLC grew its stake in shares of 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 purchasing an additional 390 shares during the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of Gen Digital in the 3rd quarter valued at about $116,000. 81.38% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on GEN shares. Zacks Research downgraded Gen Digital from a “hold” rating to a “strong sell” rating in a research report on Tuesday, January 20th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Gen Digital in a report on Thursday, January 22nd. Royal Bank Of Canada reduced their target price on Gen Digital from $33.00 to $29.00 and set a “sector perform” rating on the stock in a report on Friday, November 7th. Wall Street Zen downgraded Gen Digital from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Finally, Evercore ISI raised their price target on shares of Gen Digital from $35.00 to $37.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Gen Digital currently has a consensus rating of “Hold” and a consensus price target of $35.43.

Key Stories Impacting Gen Digital

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

• Positive Sentiment: Q3 results narrowly beat expectations: GAAP EPS $0.64 vs. $0.63 consensus and revenue $1.24B vs. $1.23B — a modest upside that supports the stock’s valuation and shows continued demand. Read More.
• Positive Sentiment: Company raised guidance: Q4 FY26 EPS guided to $0.640–0.660 (vs. ~0.630 est.) and FY26 EPS to $2.540–2.560 (vs. ~2.44 consensus); revenue guidance was raised to about $5.0B. That upward revision signals stronger underlying operating momentum. Read More.
• Positive Sentiment: Company says demand for security software remains strong and has lifted its annual revenue forecast for a third consecutive quarter — a concrete demand signal for subscription-based revenue. Read More.
• Positive Sentiment: Product/AI push — Gen launched an “Agent Trust Hub” to help secure autonomous AI agents, positioning the company to monetize AI?adjacent security needs. That product rollout supports longer?term growth optionality. Read More.
• Neutral Sentiment: Analysis piece asks whether AI features can reverse a revenue slide — useful context on execution risk around AI monetization; not a direct data point but highlights investor uncertainty about future top?line drivers. Read More.
• Neutral Sentiment: Local earnings snapshot and coverage reiterate the beat/guidance story but add little new detail; useful for broader investor reads. Read More.
• Negative Sentiment: Investor?side pressure from related instruments: a large cut in the price target for an equity right tied to GEN (GENVR) was reported — such moves can weigh on sentiment and create short?term selling pressure even when core results are solid. Read More.

About Gen Digital

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.