Gen Digital (NASDAQ:GEN) Trading Up 10.3% Following Better-Than-Expected Earnings

Gen Digital Inc. (NASDAQ:GEN) shares shot up 10.3% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $24.88 and last traded at $24.7360. 753,782 shares were traded during mid-day trading, a decline of 86% from the average session volume of 5,364,452 shares. The stock had previously closed at $22.43.

The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.01. Gen Digital had a return on equity of 57.09% and a net margin of 12.74%.The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the company posted $0.56 EPS. The business’s quarterly revenue was up 25.8% on a year-over-year basis. Gen Digital has set its Q4 2026 guidance at 0.640-0.660 EPS and its FY 2026 guidance at 2.540-2.560 EPS.

Gen Digital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Monday, February 16th will be given a $0.125 dividend. The ex-dividend date is Friday, February 13th. This represents a $0.50 annualized dividend and a dividend yield of 2.0%. Gen Digital’s dividend payout ratio (DPR) is 54.35%.

More Gen Digital News

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

• Positive Sentiment: Q3 beat on EPS and revenue — the company topped estimates and reported 25.8% revenue growth, supporting the stock’s upward move. Gen Digital (GEN) Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Raised FY26 and Q4 guidance — management lifted full?year and Q4 revenue/EPS targets above street expectations, reducing near?term forecast risk. Gen Digital raises annual revenue forecast on strong security software demand
• Positive Sentiment: Product & M&A drivers cited — management highlighted AI features and the MoneyLion business as growth contributors, which could support margin and ARPU expansion. Gen Digital raises 2026 revenue and EPS guidance as AI and MoneyLion drive growth
• Positive Sentiment: Dividend declared — board approved $0.125 quarterly payout (ex?div Feb 13, record Feb 16), which modestly enhances income appeal (?2.2% yield).
• Neutral Sentiment: Investor materials released — full earnings press release, slide deck and call transcript are available for deeper review of guidance assumptions and segment trends. View Press Release / Slide Deck
• Negative Sentiment: Capital structure & liquidity remain watchpoints — the company has a leveraged balance sheet (debt/equity ~3.43 and quick/current ratios ~0.51), which could limit flexibility if growth slows.
• Negative Sentiment: Minor negative note: a related equity-right (GENVR) price target was sharply cut, which may signal investor caution on derivative/convertible exposures. Gen Digital Inc. – Equity Right (GENVR) price target decreased

Analyst Ratings Changes

Several equities research analysts have commented on the company. Wall Street Zen lowered Gen Digital from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Barclays set a $32.00 target price on shares of Gen Digital in a research report on Friday. Weiss Ratings reissued a “hold (c+)” rating on shares of Gen Digital in a research note on Thursday, January 22nd. Evercore ISI upped their price objective on shares of Gen Digital from $35.00 to $37.00 and gave the company an “outperform” rating in a research note on Friday, November 7th. Finally, Royal Bank Of Canada decreased their target price on shares of Gen Digital from $33.00 to $29.00 and set a “sector perform” rating on the stock in a research note on Friday, November 7th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $35.29.

Insider Transactions at Gen Digital

In other news, Director John C. Chrystal bought 5,000 shares of Gen Digital stock in a transaction on Thursday, November 13th. The shares were 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 of the company’s stock, valued at approximately $771,291.66. This trade represents a 21.35% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Ondrej Vlcek sold 113,674 shares of the stock in a transaction that occurred 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 completion of the sale, the director directly owned 3,932,980 shares of the company’s stock, valued at approximately $106,662,417.60. This trade represents a 2.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 9.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Gen Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Amundi lifted its stake in shares of Gen Digital by 273.3% in the 2nd quarter. Amundi now owns 4,303,552 shares of the company’s stock valued at $128,289,000 after purchasing an additional 3,150,651 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Gen Digital by 46.8% during the third quarter. Arrowstreet Capital Limited Partnership now owns 6,600,836 shares of the company’s stock worth $187,398,000 after buying an additional 2,103,335 shares during the period. Vanguard Group Inc. raised its stake in shares of Gen Digital by 2.2% in the 2nd quarter. Vanguard Group Inc. now owns 71,249,751 shares of the company’s stock valued at $2,094,743,000 after acquiring an additional 1,558,983 shares during the period. Ameriprise Financial Inc. lifted its holdings in shares of Gen Digital by 6.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 22,473,917 shares of the company’s stock worth $660,730,000 after acquiring an additional 1,406,869 shares during the last quarter. Finally, Qube Research & Technologies Ltd lifted its stake in Gen Digital by 72.8% during the third quarter. Qube Research & Technologies Ltd now owns 2,786,250 shares of the company’s stock worth $79,102,000 after purchasing an additional 1,174,048 shares in the last quarter. Institutional investors and hedge funds own 81.38% of the company’s stock.

Gen Digital Stock Performance

The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 3.43. The firm has a 50-day moving average price of $26.30 and a 200 day moving average price of $27.72. The firm has a market capitalization of $15.25 billion, a PE ratio of 26.75, a price-to-earnings-growth ratio of 0.76 and a beta of 1.09.

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.