Gen Digital slightly beats Q3 revenue estimates, lifts 2026 revenue forecast

Overview

• Digital freedom solutions provider's Q3 FY26 revenue slightly beat analyst expectations

• Company raised FY26 guidance for revenue and EPS

• Company deployed nearly $700 mln of capital to shareholders during Q3

Outlook

• Gen Digital raises FY26 revenue guidance to $4.955 bln-$4.975 bln

• Company expects Q4 FY26 revenue between $1.24 bln and $1.26 bln

• Gen Digital anticipates FY26 EPS of $2.54-$2.56

Result Drivers

• AI-POWERED PLATFORM - Gen Digital attributed its strong Q3 results to the success of its AI-powered platform strategy, integrating security, identity, and financial wellness

• FREE CASH FLOW - The company reported substantial free cash flow, enabling investments in growth and nearly $700 mln capital return to shareholders, per CFO Natalie Derse

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Gen Digital Inc is $32.50, about 41.7% above its February 4 closing price of $22.93

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn5RyXsPa

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