Gen Digital (NASDAQ:GEN) Issues Quarterly Earnings Results

Gen Digital (NASDAQ:GEN) announced its quarterly earnings data on Thursday. The company reported $0.64 earnings per share for the quarter, beating 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 business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period in the prior year, the company earned $0.56 earnings per share. The company’s revenue was up 25.8% on a year-over-year basis. 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 Trading Down 2.2%

Shares of GEN stock opened at $22.43 on Friday. The company has a debt-to-equity ratio of 3.43, a current ratio of 0.51 and a quick ratio of 0.51. The company has a market cap of $13.83 billion, a price-to-earnings ratio of 24.38, a PEG ratio of 0.76 and a beta of 1.09. The stock has a 50 day simple moving average of $26.30 and a 200-day simple moving average of $27.72. Gen Digital has a 1-year low of $22.14 and a 1-year high of $32.22.

Gen Digital Announces Dividend

The firm also recently disclosed 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 dividend on an annualized basis and a dividend yield of 2.2%. Gen Digital’s payout ratio is 54.35%.

More Gen Digital News

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

• Positive Sentiment: Q3 results beat consensus: Gen reported $0.64 EPS vs. $0.63 consensus and revenue of ~$1.24B, with revenue up ~25.8% year-over-year — proof of improving top-line momentum. Article Title
• Positive Sentiment: Company raised FY26 and Q4 guidance: FY26 EPS raised to $2.540–2.560 (above consensus) and revenue guidance nudged up — a third consecutive raise that signals continued demand for Gen’s security and AI-enabled services. Article Title
• Positive Sentiment: AI and MoneyLion driving growth: Management cited AI product features and expansion of MoneyLion financial services as key growth levers in the quarter and in updated guidance. Article Title
• Positive Sentiment: New product/security initiative could broaden TAM: Gen launched the “Agent Trust Hub” to address AI-agent security risks — a strategic move to monetize AI security demand and protect enterprise/reputational risk. Article Title
• Neutral Sentiment: Quarterly dividend declared: Gen announced a $0.125 quarterly dividend (2.2% yield), ex-dividend Feb 13, payable Mar 11 — provides income support but is modest relative to peers.
• Neutral Sentiment: Earnings call transcript and analyst coverage: Full Q3 call details are available (useful for verifying management commentary on AI adoption and churn trends). Article Title
• Negative Sentiment: Derivative/warrant coverage cut: A price target on Gen’s equity right (GENVR) was sharply reduced, which could signal investor caution in related instruments (limited direct impact on GEN common but reflects some bearish positioning). Article Title

Insiders Place Their Bets

In related news, Director Ondrej Vlcek sold 113,674 shares of the business’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $27.12, for a total value of $3,082,838.88. Following the completion of the sale, the director owned 3,932,980 shares of the company’s stock, valued at approximately $106,662,417.60. The trade was a 2.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John C. Chrystal acquired 5,000 shares of Gen Digital stock in a transaction on Thursday, November 13th. The shares were bought at an average price of $27.14 per share, with a total value of $135,700.00. Following the completion of the transaction, the director directly owned 28,419 shares of the company’s stock, valued at $771,291.66. This trade represents a 21.35% increase in their position. The disclosure for this purchase is available in the SEC filing. 9.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Gen Digital

Several institutional investors have recently bought and sold shares of GEN. Goldman Sachs Group Inc. lifted its position in shares of Gen Digital by 1.1% in the first quarter. Goldman Sachs Group Inc. now owns 2,703,712 shares of the company’s stock valued at $71,757,000 after acquiring an additional 28,522 shares in the last quarter. Great Lakes Advisors LLC acquired a new position in Gen Digital in the 1st quarter valued at $205,000. Woodline Partners LP lifted its holdings in Gen Digital by 37.8% in the 1st quarter. Woodline Partners LP now owns 27,590 shares of the company’s stock valued at $732,000 after purchasing an additional 7,562 shares in the last quarter. Focus Partners Wealth lifted its holdings in Gen Digital by 9.7% in the 1st quarter. Focus Partners Wealth now owns 22,347 shares of the company’s stock valued at $593,000 after purchasing an additional 1,980 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its stake in Gen Digital by 221.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,717 shares of the company’s stock worth $46,000 after purchasing an additional 1,183 shares during the last quarter. 81.38% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on GEN shares. Barclays set a $32.00 price target on shares of Gen Digital in a report on Friday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Gen Digital in a research note on Thursday, January 22nd. Wall Street Zen downgraded shares of Gen Digital from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. Evercore ISI increased their price target on Gen Digital from $35.00 to $37.00 and gave the stock an “outperform” rating in a research report on Friday, November 7th. Finally, Zacks Research lowered Gen Digital from a “hold” rating to a “strong sell” rating in a research note on Tuesday, January 20th. Three equities research 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’s stock. According to data from MarketBeat.com, Gen Digital currently has a consensus rating of “Hold” and a consensus target price of $35.29.

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.