Gen Digital (NASDAQ:GEN) Issues Q2 2027 Earnings Guidance

Gen Digital (NASDAQ:GEN) issued an update on its second quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 0.730-0.730 for the period, compared to the consensus earnings per share estimate of 0.700. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.3 billion. Gen Digital also updated its FY 2027 guidance to 2.970-2.970 EPS.

Gen Digital Price Performance

NASDAQ:GEN opened at $20.85 on Wednesday. Gen Digital has a 52-week low of $17.78 and a 52-week high of $31.65. The stock has a fifty day moving average of $28.30 and a 200 day moving average of $24.68. The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.47 and a current ratio of 0.47. The firm has a market capitalization of $12.48 billion, a price-to-earnings ratio of 12.12, a P/E/G ratio of 0.65 and a beta of 1.22.

Gen Digital (NASDAQ:GEN) last announced its earnings results on Thursday, August 6th. The company reported $0.71 earnings per share for the quarter, topping analysts’ consensus estimates of $0.69 by $0.02. The business had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. Gen Digital had a return on equity of 55.93% and a net margin of 20.73%.The company’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.64 EPS. Gen Digital has set its FY 2027 guidance at 2.870-2.970 EPS and its Q2 2027 guidance at 0.710-0.730 EPS. On average, research analysts expect that Gen Digital will post 2.66 EPS for the current fiscal year.

Gen Digital Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 9th. Shareholders of record on Monday, August 17th were paid a $0.1250 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Monday, August 17th. Gen Digital’s payout ratio is currently 29.07%.

Analyst Ratings Changes

GEN has been the topic of several research reports. Weiss Ratings upgraded shares of Gen Digital from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. Wall Street Zen cut shares of Gen Digital from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. Royal Bank Of Canada reduced their price objective on shares of Gen Digital from $30.00 to $26.00 and set a “sector perform” rating on the stock in a research report on Friday, September 25th. Wells Fargo & Company lifted 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, August 7th. Finally, Barclays raised their target price on Gen Digital from $27.00 to $32.00 and gave the company an “equal weight” rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $30.80.

Insider Activity

In other Gen Digital news, Director Ondrej Vlcek sold 200,000 shares of Gen Digital stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $30.00, for a total transaction of $6,000,000.00. Following the completion of the transaction, the director owned 3,332,904 shares in the company, valued at approximately $99,987,120. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Bryan Seuk Ko sold 28,248 shares of the business’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $30.67, for a total value of $866,366.16. Following the completion of the sale, the chief operating officer directly owned 744,262 shares in the company, valued at $22,826,515.54. This trade represents a 3.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 558,508 shares of company stock worth $16,356,093. Insiders own 9.70% of the company’s stock.

Key Gen Digital News

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

• Positive Sentiment: Raised fiscal 2027 outlook: Gen Digital now expects fiscal 2027 EPS of $2.97, above the $2.87 analyst consensus, and revenue of approximately $5.5 billion versus the $5.4 billion consensus. The company also raised second-quarter fiscal 2027 guidance to $0.73 EPS and $1.4 billion in revenue, ahead of estimates of $0.70 and $1.3 billion, respectively. The stronger outlook could support investor confidence in the company’s underlying business.
• Positive Sentiment: Potentially oversold conditions: Gen Digital has lost 32.7% over four weeks, and technical analysis indicates the stock may be oversold. Analysts have also been revising earnings estimates higher, suggesting the recent selling could be nearing exhaustion and that a trend reversal is possible. Gen Digital Loses 32.7% in 4 Weeks
• Positive Sentiment: Management remains confident: Chief Executive Officer Vincent Pilette reportedly expects Gen Digital to reach the high end of its existing guidance, reinforcing the upgraded forecast.
• Neutral Sentiment: GoDaddy acquisition remains a major catalyst: Gen Digital reportedly submitted a preliminary offer to acquire GoDaddy and has addressed related acquisition rumors. The deal could expand Gen Digital’s digital-security and online-services footprint, but its ultimate effect depends on transaction terms, financing, regulatory review and execution. Gen Digital Submits Preliminary Offer for GoDaddy
• Negative Sentiment: Acquisition uncertainty has weighed on the stock: Reports indicate Gen Digital’s shares entered a sharp decline after the GoDaddy takeover bid. Investors appear concerned about the size, financing, potential leverage and integration risks associated with a large transaction, even though management has sought to address the rumors. Gen Digital CEO Addresses GoDaddy Rumors

Gen Digital Company Profile

Gen Digital Inc is a global cybersecurity and digital safety company that provides products and services designed to help consumers protect their devices, online privacy, personal information and digital identities. Its offerings include antivirus and malware protection, online privacy tools, identity theft protection, password management, scam and fraud protection, and utilities that support device performance and security.

The company markets its products under a portfolio of well-known brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner.