With a market cap. of $16.4 billion, Gen Digital Inc. (GEN) is a global digital safety company providing cybersecurity, online privacy, identity protection, reputation management, and financial wellness solutions through brands including Norton, Avast, LifeLock, and MoneyLion. Headquartered in Tempe, Arizona, the company serves nearly 500 million users worldwide and uses AI to deliver personalized, trusted digital and financial protection. It currently has.
Shares of the leading digital safety company have underperformed the broader market over the past 52 weeks. GEN stock has declined 2.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.6%. The stock is up 3.1% on a YTD basis, compared to the SPX's 10.9% gain over the same period.
Narrowing the comparison, GEN stock has lagged behind the Global X Cybersecurity ETF (BUG), which has gained nearly 16% over the past year.
Gen Digital has been underperforming due to competitive pressures in cybersecurity, customer-acquisition costs, and execution risks from integrating MoneyLion.
However, the stock soared 12.3% following its better-than-expected Q4 2026 results on May 7, with revenue of $1.28 billion (up 27%), operating income of $803 million (up 93%), EPS of $0.84 (up 269%), and free cash flow of $449 million, supported by strong demand for its Cyber Safety Platform and double-digit growth in Trust-Based Solutions. Gen Digital also reported a record fiscal 2026, with revenue crossing $5 billion for the first time, up 27%, while EPS surged 53% to $1.57 and operating income rose 32% to $2.12 billion.
Investor sentiment was further boosted by higher fiscal 2027 guidance, with revenue expected at $5.33 billion - 5.43 billion and adjusted EPS at $2.85 - $2.95.
For the fiscal year ending in March 2027, analysts expect GEN's EPS to increase 19.7% to $2.61. Nevertheless, the company’s earnings surprise history is weak. It missed the consensus estimates in each of the last four quarters.
Among the 10 analysts covering GEN stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and six “Hold” ratings.
This configuration is slightly more bullish than it was three months ago, when the stock had three "Strong Buy" ratings.
On Jul. 27, Wells Fargo analyst Richard Poland maintained a "Hold" rating on Gen Digital with a $22 price target.
The mean price target of $30.80 represents a premium of 12.2% to GEN’s current levels. The Street-high price target of $46 implies a potential upside of 67.6% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.