GICS Sector : Technology
Gen Digital Inc.provides cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan.It offers Norton 360, an integrated platform provides extensive cyber safety coverage and a subscription service providing protection for PCs, Macs, and mobile devices against malware, viruses, adware, ransomware, and other online threats on various platforms; and Norton and LifeLock identity theft protection solution that offers monitoring, alerts, and restoration services to its customers.
Gen reported a robust Q3 FY2026, with bookings reaching $1.3 billion, up 27% year over year, and revenue of $1.2 billion, up 26% year over year. The company's non-GAAP EPS came in at 64¢, beating estimates of 63¢, representing a 14% year-over-year increase. Operating income was $629 million, with a 51% operating margin, while net income was $394 million. The company's financial performance was driven by strong growth in its trust-based solutions segment, which reported bookings and revenue growth of 23% and 22%, respectively, on a pro forma basis.
Publication Date: Feb -08
The cyber safety segment saw bookings growth of 5% and revenue growth of 3%, while the trust-based solutions segment continued to drive growth, with bookings and revenue up 23% and 22%, respectively. The company's MoneyLion business also demonstrated significant growth, with a 40% increase in business, driven by a growing ratio of personal consumer offerings and membership, savings accounts, and engine.
Gen is leveraging AI to drive innovation, with new features such as Genie Pro Scam Protection and Norton NEO, a safe AI browser. The company is focused on long-term value creation by earning customers' trust every day and is investing in strategic AI opportunities while driving efficiencies. The company's AI initiatives are focused on rebuilding applications with an AI lens and changing functions to be AI-first.
With a P/E Ratio of 24.73 and an ROE of 25.6%, Gen's valuation appears to be reasonable, considering its strong growth prospects. The company's ROIC is 6.96%, indicating a decent return on capital. The dividend yield is 2.06%, providing a relatively stable source of return for investors. The company's free cash flow yield is 10.14%, suggesting a strong ability to generate cash.
Gen raised its revenue and EPS guidance for FY2026, with full-year revenue expected to be in the range of $4.955 billion to $4.975 billion and non-GAAP EPS in the range of $2.54 to $2.56. The company is confident in its ability to drive profitable growth, generate strong free cash flow, and return capital to shareholders.
Gen generated $541 million in operating cash flow and $535 million in free cash flow in Q3, enabling the deployment of nearly $700 million of capital for shareholders. The company returned $300 million to shareholders through share repurchases and paid $300 million towards debt repayment. The Q3 ending cash balance was $619 million, representing over $2.1 billion of liquidity.
Gen Digital Inc. $GEN Shares Purchased by First Trust Advisors LP
Mar -07
The World's First AI-Powered Scam Detector, Norton Genie, Now in ChatGPT
Mar -04
Gen Digital Inc. (GEN) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Mar -03
NTT DATA to Power Georgia's Next-Gen Digital Government Experience
Mar -03
MoneyLion Now Offers Members Scam and Identity Protection Powered by LifeLock
Mar -02
Andra AP fonden Buys 177,300 Shares of Gen Digital Inc. $GEN
Feb -27
Cozad Asset Management Inc. Acquires 84,945 Shares of Gen Digital Inc. $GEN
Feb -25
Gen to Present at the Morgan Stanley Technology, Media & Telecom Conference
Feb -24
Gen Digital Inc.'s Consumer Security segment growth of 5.5% is driven by increasing cyber threats, rising demand for online protection, and growing adoption of digital payments. Additionally, the shift to remote work and online learning has boosted demand for security solutions, while the company's innovative products and strategic partnerships have enhanced its market position.
Gen Digital Inc.'s Identity and Information Protection segment growth of 5.8% is driven by increasing demand for cybersecurity solutions, rising threat of data breaches, and growing need for compliance with regulations such as GDPR and HIPAA. Additionally, the shift to cloud-based services and IoT devices has created new vulnerabilities, further fueling growth in this segment.
Gen Digital Inc.'s legacy segment growth of 4.2% is driven by increasing demand for cybersecurity solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and effective sales execution have contributed to this growth.
A comprehensive cybersecurity solution that protects devices from malware, viruses, and other online threats.
An all-in-one cybersecurity suite that offers antivirus protection, password management, and online backup.
A identity theft protection service that monitors and alerts users of potential identity theft.
A virtual private network (VPN) that encrypts internet connections and protects online privacy.
A PC optimization tool that improves computer performance, frees up storage, and fixes common issues.
Gen Digital Inc. faces moderate threat from substitutes, as customers have limited alternatives for digital transformation services.
Gen Digital Inc. has a diverse customer base, reducing the bargaining power of individual customers.
Gen Digital Inc. relies on a few key suppliers for technology and infrastructure, giving them moderate bargaining power.
The digital transformation industry is highly competitive, and new entrants can easily disrupt the market with innovative solutions.
The digital transformation industry is highly competitive, with many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 79.66% |
| Debt Cost | 5.79% |
| Equity Weight | 20.34% |
| Equity Cost | 9.48% |
| WACC | 6.54% |
| Leverage | 391.62% |
Value: 5.2
Growth: 4.9
Quality: 7.0
Yield: 5.0
Momentum: 3.0
Volatility: 9.7
1-Year Total Return ->
Value: 3.3
Growth: 6.6
Quality: 9.0
Yield: 0.0
Momentum: 5.0
Volatility: 7.7
1-Year Total Return ->
Value: 3.0
Growth: 4.6
Quality: 6.7
Yield: 4.0
Momentum: 4.0
Volatility: 8.7
1-Year Total Return ->
Value: 1.9
Growth: 7.9
Quality: 9.2
Yield: 0.0
Momentum: 4.0
Volatility: 5.7
1-Year Total Return ->
Value: 3.4
Growth: 8.6
Quality: 6.9
Yield: 0.0
Momentum: 1.0
Volatility: 7.3
1-Year Total Return ->
Value: 5.0
Growth: 6.9
Quality: 4.1
Yield: 0.0
Momentum: 1.5
Volatility: 3.0
1-Year Total Return ->