Gen Digital (NASDAQ:GEN) Trading 10.3% Higher After Better-Than-Expected Earnings

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

The company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.63 by $0.01. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Gen Digital had a return on equity of 57.09% and a net margin of 12.74%.The business’s revenue was up 25.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.56 earnings per share. 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 Dividend Announcement

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

Gen Digital News Roundup

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

Wall Street Analyst Weigh In

GEN has been the topic of a number of recent research reports. Royal Bank Of Canada decreased their price objective on Gen Digital from $33.00 to $29.00 and set a “sector perform” rating on the stock in a research report on Friday, November 7th. Evercore ISI raised 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. Weiss Ratings reiterated a “hold (c+)” rating on shares of Gen Digital in a research report on Thursday, January 22nd. Barclays set a $32.00 target price on shares of Gen Digital in a report on Friday. Finally, Wall Street Zen downgraded shares of Gen Digital from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Gen Digital presently has an average rating of “Hold” and a consensus target price of $35.29.

Insider Transactions at Gen Digital

In related news, Director John C. Chrystal bought 5,000 shares of Gen Digital stock in a transaction dated Thursday, November 13th. The shares were acquired at an average cost of $27.14 per share, with a total value of $135,700.00. Following the completion of the transaction, the director owned 28,419 shares in the company, valued at $771,291.66. The trade was a 21.35% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Ondrej Vlcek sold 113,674 shares of Gen Digital 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 sale, the director directly owned 3,932,980 shares of the company’s stock, valued at $106,662,417.60. This 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 corporate insiders.

Institutional Trading of Gen Digital

Several hedge funds and other institutional investors have recently bought and sold shares of GEN. Choreo LLC lifted its holdings in shares of Gen Digital by 3.2% during the 2nd quarter. Choreo LLC now owns 10,116 shares of the company’s stock valued at $297,000 after purchasing an additional 315 shares during the last quarter. Beacon Pointe Advisors LLC increased its position in Gen Digital by 3.9% during the 2nd quarter. Beacon Pointe Advisors LLC now owns 9,505 shares of the company’s stock valued at $279,000 after buying an additional 357 shares in the last quarter. Blue Trust Inc. raised its stake in Gen Digital by 2.4% in the fourth quarter. Blue Trust Inc. now owns 16,210 shares of the company’s stock valued at $441,000 after buying an additional 387 shares during 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 worth $64,000 after acquiring an additional 390 shares during the last quarter. Finally, Clearstead Advisors LLC increased its holdings in shares of Gen Digital by 48.6% during the third quarter. Clearstead Advisors LLC now owns 1,223 shares of the company’s stock valued at $35,000 after acquiring an additional 400 shares in the last quarter. Institutional investors own 81.38% of the company’s stock.

Gen Digital Stock Up 10.2%

The company’s 50-day moving average is $26.30 and its 200 day moving average is $27.72. The stock 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. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 3.43.

Gen Digital Company Profile

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.