Gen Digital Inc. (GEN) is a global frontrunner in consumer cyber protection, offering cutting-edge software through well-known brands such as Norton, Avast, LifeLock, and MoneyLion. These solutions emphasize cybersecurity, digital privacy, identity safeguards, and financial health, reaching users worldwide primarily through seamless online channels.
Headquartered in Tempe, Arizona, the firm manages broad operations from its core sites. Drawing on deep-rooted experience, Gen Digital fosters secure digital experiences. The company has a market capitalization of $16.95 billion, which classifies it as a “large-cap” stock.
Gen Digital’s shares had reached a 52-week high of $32.22 on Aug. 13, but are down 15% from that level. Amid tepid sentiment toward the company, the stock has declined 4.3% over the past three months. On the other hand, the broader Nasdaq Composite ($NASX) index gained 3.5% over the same period.
Over a more extended period, this underperformance persists. Over the past 52 weeks, Gen Digital’s stock has dropped 7.9%, while it has been down 8.8% over the past six months. Contrarily, the Nasdaq Composite has gained 14.6% and 17.3% over the same periods, respectively. The company’s stock has been trading below its 200-day moving average since early October, but above the 50-day moving average since early December.
On Nov. 6, Gen Digital reported its second-quarter results for fiscal 2026 (quarter ended Oct. 3), reporting a 25.3% year-over-year (YOY) increase in net revenues to $1.22 billion. This was also higher than the $1.19 billion that Wall Street analysts had expected.
Gen Digital also recorded $1.22 billion in bookings, up 26.8% YOY. As of Oct. 3, the company had 77 million paid customers. Its non-GAAP EPS increased 14.8% YOY to $0.62, beating the $0.61 analysts’ estimate.
The company raised its fiscal 2026 revenue guidance from $4.80 billion-$4.90 billion to $4.92 billion-$4.97 billion and its EPS guidance from $2.49-$2.56 to $2.51-$2.56. The stock gained 1.3% intraday on Nov. 7 based on these results.
We compare Gen Digital’s performance with that of another cybersecurity stock, Zscaler, Inc. (ZS), which has gained 13.9% over the past 52 weeks, outperforming Gen Digital, but declined 23.7% over the past six months, underperforming GEN.
Wall Street analysts are moderately bullish on Gen Digital’s stock. The stock has a consensus rating of “Moderate Buy” from the nine analysts covering it. The mean price target of $34.38 indicates a 25.6% upside compared to current levels. The Street-high price target of $46 indicates a 68% upside.
On the date of publication, Anushka Dutta 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.
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