Gen Digital Inc. (GEN) AI Stock Analysis

Gen Digital Inc. provides cyber safety solutions designed to protect consumers worldwide across regions including the United States, Europe, and Asia Pacific. Headquartered in Tempe, Arizona, the company delivers services under its flagship Norton brand, such as the Norton 360 integrated security platform for PCs, Macs, and mobile devices. It also offers identity theft protection via Norton and LifeLock, privacy tools including Norton Secure VPN and Privacy Monitor Assistant, and fraud alerts via Home Title Protect. Its portfolio further includes Avira Security, Dark Web Monitoring, and AntiTrack, distributed via retailers, telecom providers, hardware OEMs, employee benefit providers, and e-commerce platforms.

Gen Digital grew revenue from $2.80B in FY2022 to $5.00B in FY2026, achieving a 5-year revenue CAGR of 14.4%. Revenue expansion peaked in FY2026 with a 27.1% increase, while gross margin compressed from 85.4% in FY2022 to 78.5% in FY2026. Operating margin reached 43.1% in FY2026, up from 35.9% in FY2022, and net income rose to $973.0M. For the trailing twelve months ended June 30, 2026, revenue stood at $5.08B with a net profit margin of 20.7%. In the latest quarter ended June 30, 2026, quarterly revenue grew 6.3% year-over-year while quarterly earnings expanded 64.0%.

As of June 30, 2026, Gen Digital held $564.0M in cash and short-term investments alongside total debt of $8.18B, resulting in net debt of $7.61B. Shareholders' equity was $2.66B, producing a debt-to-equity ratio of 3.08 and a current ratio of 0.47. Operating cash flow reached $1.54B in FY2026, supporting $22.0M in capital expenditures. Cash allocation in FY2026 included $634.0M directed toward share buybacks and $312.0M paid in dividends.

GEN trades at a trailing P/E of 14.1x and a forward P/E of 9.3x, sitting below the median of its S&P 500 Technology peers of 31.5x and 20.9x, respectively. Its price-to-sales multiple is 2.8x compared to the peer median of 6.3x, and its EV-to-EBITDA stands at 9.4x against the peer median of 19.9x. Over the past year, GEN shares delivered a return of -6.9%, underperforming the S&P 500 benchmark return of 16.8%. Over a 5-year period, the stock generated a 6.0% return versus 83.0% for the S&P 500.

Gen Digital pays a quarterly dividend totaling an annualized forward rate of $0.50 per share, representing a 2.07% dividend yield and a 19.5% payout ratio. The company has paid dividends for 14 consecutive years. Its 5-year annualized dividend growth rate stands at -47.5%, and the most recent ex-dividend date occurred on August 17, 2026.

Wall Street coverage consists of 4 Strong Buy and 6 Hold ratings among 10 analysts. The mean price target is $32.33, implying upside of 33.8% over the last close of $24.16. Consensus expectations project FY2027 revenue of $5.45B and EPS of $2.94, representing 15.0% earnings growth. For FY2028, revenue is estimated at $5.79B with EPS of $3.31. Gen Digital has beaten EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for October 28, 2026.

This page is an AI-written research summary of Gen Digital Inc. (GEN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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