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

Gen Digital (NASDAQ:GEN) posted its earnings results on Thursday. The company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.69 by $0.02, FiscalAI reports. The company had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.31 billion. Gen Digital had a net margin of 20.73% and a return on equity of 57.01%. The firm’s quarterly revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.64 earnings per share. Gen Digital updated its FY 2027 guidance to 2.870-2.970 EPS and its Q2 2027 guidance to 0.710-0.730 EPS.

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

• Q1 exceeded expectations: bookings and revenue rose 11% to $1.28 billion and $1.34 billion, respectively, while non-GAAP EPS increased 19% to $0.71.
• Gen raised its fiscal 2027 outlook to 9%–11% revenue growth and 14%–18% non-GAAP EPS growth, up from prior guidance of 8%–10% and mid-teens EPS growth.
• Trust-Based Solutions remained the primary growth engine, with bookings up 25% and revenue up 24%, driven by LifeLock, MoneyLion’s personal financial management products, and Engine Marketplace, which surpassed a $500 million annual revenue run rate.
• Cyber Safety delivered steady 4% growth with a 61% operating margin, while paid customers reached 81 million and cross-selling into higher-tier memberships continued to improve.
• Gross margin declined slightly to 82% because of mix, as faster-growing Engine Marketplace categories carry lower gross margins; management expects this dynamic to continue even though operating margins remained stable at 50%.

Gen Digital Price Performance

Shares of GEN traded up $1.07 during mid-day trading on Friday, hitting $29.17. 11,321,132 shares of the company were exchanged, compared to its average volume of 4,184,866. Gen Digital has a 1-year low of $17.78 and a 1-year 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. The company has a 50 day moving average of $25.96 and a 200-day moving average of $23.33. The stock has a market cap of $17.46 billion, a price-to-earnings ratio of 16.96 and a beta of 1.21.

Gen Digital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Monday, August 17th will be given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Monday, August 17th. Gen Digital’s dividend payout ratio is 31.65%.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Weiss Ratings raised Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, July 15th. Argus raised shares of Gen Digital to a “strong-buy” rating in a research note on Friday, May 22nd. Wall Street Zen raised shares of Gen Digital from a “hold” rating to a “buy” rating in a report on Saturday. Wells Fargo & Company boosted their target price on shares of Gen Digital from $22.00 to $28.00 and gave the company an “equal weight” rating in a research note on Friday. Finally, Barclays increased their price target on shares of Gen Digital from $27.00 to $32.00 and gave the stock an “equal weight” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $31.67.

Key Gen Digital News

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

Insider Activity

In other news, Director John C. Chrystal acquired 3,000 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were bought at an average cost of $27.06 per share, for a total transaction of $81,180.00. Following the acquisition, the director 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 Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ondrej Vlcek sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 9.70% of the company’s stock.

Institutional Trading of Gen Digital

Several large investors have recently made changes to their positions in the company. State Street Corp lifted its holdings in Gen Digital by 3.4% in the 3rd quarter. State Street Corp now owns 30,558,806 shares of the company’s stock valued at $867,565,000 after purchasing an additional 1,015,755 shares in the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Gen Digital by 6.7% during the second quarter. Ameriprise Financial Inc. now owns 22,473,917 shares of the company’s stock worth $660,730,000 after buying an additional 1,406,869 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of Gen Digital by 22.3% during the fourth quarter. First Trust Advisors LP now owns 19,941,546 shares of the company’s stock worth $542,211,000 after buying an additional 3,640,451 shares in the last quarter. Boston Partners raised its position in shares of Gen Digital by 4.3% in the third quarter. Boston Partners now owns 13,689,577 shares of the company’s stock valued at $388,610,000 after buying an additional 565,836 shares during the last quarter. Finally, Invesco Ltd. raised its position in shares of Gen Digital by 9.7% in the fourth quarter. Invesco Ltd. now owns 9,975,365 shares of the company’s stock valued at $271,230,000 after buying an additional 878,662 shares during the last quarter. 81.38% of the stock is currently owned by hedge funds and other institutional investors.

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.