Wall Street’s Outlook: Are Analysts Positive on Gen Digital Stock?

Published On: May 7, 2025 9:26 am

Gen Digital Inc. Reports Strong Q4 Results Despite Year-to-Date Decline

With a market cap of $15.9 billion, Gen Digital Inc. (GEN) specializes in cyber safety solutions encompassing cybersecurity, online privacy, and identity protection. The company operates under renowned brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner, offering products designed to safeguard and enhance digital freedom for consumers.

Market Performance Overview

In the past 52 weeks, shares of the Tempe, Arizona-based company have outperformed the broader market. GEN’s stock has risen 30.6% during this period, while the S&P 500 Index ($SPX) has only gained 8.2%. However, on a year-to-date (YTD) basis, Gen Digital’s shares have declined by 6.1%, lagging behind the S&P’s 4.7% drop.

Moreover, Gen Digital’s performance has surpassed that of the Technology Select Sector SPDR Fund’s (XLK) 4.3% return over the same timeframe.

Q4 Earnings and Future Outlook

Gen Digital recently released strong Q4 2025 results on May 6, reporting revenue of $1 billion and adjusted earnings per share (EPS) of $0.59, both exceeding expectations. The company also forecasted full-year 2026 revenue in the range of $4.7 billion to $4.8 billion, alongside adjusted EPS of $2.46 to $2.54, surpassing analyst estimates. This positive outlook indicates solid demand for its cybersecurity solutions, including Norton, Avast, and Avira, especially given the increasing online threats and AI-driven hacking.

Analysts project that for the fiscal year ending in March 2026, GEN’s EPS is expected to grow nearly 10% year-over-year to $2.21. The company’s earnings surprise history, however, is mixed; it has met or beaten consensus estimates in two of the last four quarters, but fell short in the other two.

Analyst Sentiment

Among the seven analysts covering GEN, the consensus rating is a “Moderate Buy.” This assessment includes four “Strong Buy” ratings and three “Holds.” This rating is slightly less bullish compared to three months ago, which had five “Strong Buy” ratings.

On April 10, RBC Capital adjusted Gen Digital’s price target to $28 while maintaining a “Sector Perform” rating. The revision stemmed from concerns regarding uncertain software buying cycles and macroeconomic instability, despite a temporary halt in tariffs.

Currently, GEN is trading below the average price target of $32. The highest price target of $37 suggests a potential upside of 43.9% from current levels.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.