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Tempe, Arizona-based Gen Digital Inc. (GEN) is a cybersecurity and digital privacy company. With a market cap of $18.2 billion, it provides products and services under brands like Norton, Avast, and LifeLock to protect consumers from online threats, identity theft, and privacy breaches.
Shares of the security software maker have outperformed the broader market over the past 52 weeks. GEN has surged 53.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.4%. In 2024, shares of GEN are up 29.6%, compared to SPX’s 25.2% gain on a YTD basis.
Focusing more closely, Gen Digital has also outpaced the SPDR S&P Software & Services ETF’s (XSW) 44.6% gain over the past 52 weeks and a 22.4% YTD return.
Gen Digital’s shares climbed 8.2% following its Q2 2025 earnings release on Oct. 30, driven by stronger-than-expected revenue growth of 3% to $974 million, surpassing analyst expectations. The company also forecasted Q3 revenue guidance of $980 million to $990 million above Wall Street estimates, signaling robust demand fueled by the adoption of cybersecurity measures to support GenAI technology and data protection needs. Additionally, Gen Digital raised the lower end of its 2024 revenue forecast, reflecting confidence in sustained demand and growth. Investors were further encouraged by a stable adjusted profit of $0.54 per share, meeting analyst expectations.
For the current fiscal year, ending in March 2025, analysts expect GEN’s EPS to grow 13.3% year-over-year to $2.04. The company's earnings surprise history is mixed. It met the consensus estimates in three of the last four quarters while missing on another occasion.
Among the seven analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and three “Holds.”
This configuration is slightly more bullish than three months ago, with three “Strong Buy“ ratings on the stock.
On Oct. 31, Wells Fargo raised Gen Digital's price target to $37 - the Street-high price target and maintained an “Overweight" rating, citing strong Q2 results with 5% bookings growth, expected to drive revenue and mid-teens EPS growth amid increased demand from breach activity. This implies a potential upside of 25.2% from the current price levels. As of writing, GEN is trading below the mean price target of $31.43.
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.
