Upside case
Bull case
$63+219.0%
GEN would need investors to value it at roughly 25x earnings — about 17x more generous than today's 8x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Gen Digital Inc. (GEN) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
21
analysts
11 bullish · 1 bearish · 21 covering GEN
Strong Buy
0
Buy
11
Hold
9
Sell
1
Strong Sell
0
Consensus Target
$32
+62.4% vs today
Scenario Range
$1 – $63
Model bear to bull value window
Coverage
21
Published analyst ratings
Valuation Context
7.7x
Forward P/E · Market cap $12.2B
GEN price targets
Three scenarios for where GEN stock could go
Current
~$20
Confidence
37 / 100
Updated
May 1, 2026
Where we are now
Current · $20
Bear
$1
Base
$33
Bull
$63
Market caseClosest to today
Base case
$33+67.9%
At 13x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$1-92.9%
If investor confidence fades or macro conditions deteriorate, a 7x multiple contraction could push GEN down roughly 93% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Gen Digital Inc.
GEN · NASDAQTechnologySoftware - InfrastructureMarch year-end
Gen Digital is a consumer cybersecurity company that provides antivirus, identity theft protection, and online privacy solutions through brands like Norton and LifeLock. It generates revenue primarily from subscription services — with consumer cybersecurity subscriptions accounting for over 90% of sales — while also offering some direct-to-consumer hardware products. The company benefits from strong brand recognition in consumer security, cross-selling opportunities across its portfolio, and network effects as its threat intelligence improves with more users.
Market Cap
$12.2B
Revenue TTM
$4.7B
Net Income TTM
$603M
Net Margin
12.8%
GEN Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.59/$0.58
Revenue
$1.0B/$997M
Q3 2025
EPS
$0.64/$0.60
Revenue
$1.3B/$1.2B
Q4 2025
EPS
$0.62/$0.61
Revenue
$1.2B/$1.2B
Q1 2026
EPS
$0.64/$0.63
Revenue
$1.2B/$1.2B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.59/$0.58 | +1.7% | $1.0B/$997M | +1.3% |
| Q3 2025 | $0.64/$0.60 | +6.7% | $1.3B/$1.2B | +5.9% |
| Q4 2025 | $0.62/$0.61 | +1.6% | $1.2B/$1.2B | +2.2% |
| Q1 2026 | $0.64/$0.63 | +1.6% | $1.2B/$1.2B | +1.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$5.1B
+6.8% YoY
FY2
$5.4B
+7.1% YoY
EPS Outlook
FY1
$1.51
+55.5% YoY
FY2
$1.73
+14.7% YoY
Trailing FCF (TTM)$1.5B
FCF Margin: 32.1%
Next Earnings
May 7, 2026
Expected EPS
$0.65
Expected Revenue
$1.2B
GEN beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
GEN Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $3.9B
Product Mix
Latest annual revenue by segment or product family
Cyber Safety Revenues
98.7%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
65.7%
+3.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Cyber Safety Revenues is the largest disclosed segment at 98.7% of FY 2025 revenue, with no year-over-year comparison yet.
Americas is the largest reported region at 65.7%, up 3.8% YoY.
GEN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $66 — implies +241.4% from today's price.
Upside to Fair Value
241.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
GEN
19.1x
vs
S&P 500
25.1x
24% discount
vs Technology Trailing P/E
GEN
19.1x
vs
Technology
26.7x
28% discount
vs GEN 5Y Avg P/E
Today
19.1x
vs
5Y Average
19.8x
In line with benchmark
Forward PE
7.7x
S&P 500
19.1x
-59%
Technology
22.1x
-65%
5Y Avg
—
—
Trailing PE
19.1x
S&P 500
25.1x
-24%
Technology
26.7x
-28%
5Y Avg
19.8x
-3%
PEG Ratio
7.00x
S&P 500
1.72x
+308%
Technology
1.52x
+359%
5Y Avg
—
—
EV/EBITDA
9.6x
S&P 500
15.2x
-37%
Technology
17.5x
-45%
5Y Avg
13.6x
-30%
Price/FCF
10.1x
S&P 500
21.1x
-52%
Technology
19.5x
-48%
5Y Avg
13.9x
-27%
Price/Sales
3.1x
S&P 500
3.1x
-1%
Technology
2.4x
+27%
5Y Avg
4.4x
-29%
Dividend Yield
2.54%
S&P 500
1.87%
+36%
Technology
1.16%
+120%
5Y Avg
2.39%
+7%
| Metric | GEN | S&P 500 | Technology | 5Y Avg GEN |
|---|---|---|---|---|
| Forward PE | 7.7x | 19.1x-59% | 22.1x-65% | — |
| Trailing PE | 19.1x | 25.1x-24% | 26.7x-28% | 19.8x |
| PEG Ratio | 7.00x | 1.72x+308% | 1.52x+359% | — |
| EV/EBITDA | 9.6x | 15.2x-37% | 17.5x-45% | 13.6x-30% |
| Price/FCF | 10.1x | 21.1x-52% | 19.5x-48% | 13.9x-27% |
| Price/Sales | 3.1x | 3.1x | 2.4x+27% | 4.4x-29% |
| Dividend Yield | 2.54% | 1.87% | 1.16% | 2.39% |
GEN trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolGEN Financial Health
Verdict
Strong
GEN generates $1.5B in free cash flow at a 32.1% margin — 12.4% ROIC signals a durable competitive advantage · returns 4.8% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$4.7B
Revenue Growth
TTM vs prior year
+20.1%
Gross Margin
Gross profit as a share of revenue
77.7%
Operating Margin
Operating income divided by revenue
36.9%
Net Margin
Net income divided by revenue
12.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.97
Free Cash Flow (TTM)
Cash generation after capex
$1.5B
FCF Margin
FCF as share of revenue — the primary cash quality signal
32.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
12.4%
ROA
Return on assets, trailing twelve months
3.8%
Cash & Equivalents
Liquid assets on the balance sheet
$1.0B
Net Debt
Total debt minus cash
$7.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
4.8× FCF
~4.8 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
25.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.8%
Dividend
2.5%
Buyback
2.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$272M
Dividend / Share
Annualized trailing dividend per share
$0.50
Payout Ratio
Share of earnings distributed as dividends
48.7%
Shares Outstanding
Declining as buybacks retire shares
624M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageGEN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Long-Term Care (LTC) Portfolio
Genworth's legacy LTC insurance portfolio presents significant profitability challenges due to lower renewal premiums and elevated mortality rates. The future profitability of this segment relies on obtaining regulatory approvals for premium increases, which are uncertain and have led to ongoing legal actions by the company.
High Risk
Enact Holdings Dependence
Genworth's financial stability is heavily reliant on Enact Holdings' ability to return capital and pay dividends. Enact's performance is closely linked to the housing market, making it vulnerable to downturns, particularly as new insurance written has already seen a decrease.
High Risk
Debt Load and Financial Leverage
Gen Digital carries a significant debt load, reflected in a high debt-to-EBITDA ratio. This leverage, while potentially enhancing returns, poses risks as rising debt expenses threaten expected earnings per share synergies.
Medium
Technological and Cybersecurity Risks
Genworth faces operational risks from technology and cybersecurity failures, which could lead to financial losses and reputational damage. The emergence of new technologies and related legislation adds complexity to these risks.
Medium
Regulatory and Economic Uncertainties
The insurance industry is subject to stringent regulatory oversight, and changes in regulations could adversely affect Genworth's operations. Additionally, macroeconomic factors such as interest rate fluctuations and housing market dynamics pose ongoing risks.
Medium
Customer and Geographic Concentration
Genworth's reliance on a limited number of large lending customers within the Enact segment poses a risk of significant business loss if these relationships deteriorate. In 2025, a major customer accounted for a substantial portion of Enact's new insurance written.
Lower
Market Volatility
Genworth's investment portfolio is susceptible to market volatility, which can negatively impact its overall financial strength. A sudden downturn in the market could lead to significant financial repercussions.
Lower
Operational Risks from Integration
The integration of Avast into Gen Digital poses operational risks, particularly in the face of macroeconomic pressures that could increase customer churn and business volatility.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why GEN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Market Position and Growth Drivers
Generac is a global leader in energy technology solutions, including power generation and energy management devices. The company is well-positioned to capitalize on the increasing demand for backup power, driven by trends leading to poorer power quality.
Recent Strong Earnings Performance
Generac reported a 12% year-over-year increase in net sales for Q1 2026, reaching $1.06 billion. The company's earnings per share (EPS) of $1.80 significantly surpassed analyst expectations of $1.35.
Raised Full-Year Guidance
Following its strong Q1 results, Generac updated its full-year 2026 net sales growth guidance to the mid-to-high teens percent range, indicating confidence in continued growth.
Acquisition Growth Potential
The recent acquisition of Enercon is expected to contribute positively to Generac's sales growth, enhancing its market position and product offerings.
Innovative Product Portfolio Expansion
Generac is evolving its product portfolio by building ecosystems of energy technology products and solutions, which helps end-users manage their energy costs. The company continues to innovate with new additions to its commercial XD Series lineup.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
GEN Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$19.71
52W Range Position
13%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$17.78
+10.9% from the low
52-Week High
$32.22
-38.8% from the high
1 Month
+1.76%
3 Month
-12.13%
YTD
-24.4%
1 Year
-23.5%
3Y CAGR
+4.7%
5Y CAGR
-1.5%
10Y CAGR
+1.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
GEN vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
7.7x
vs 49.9x median
-85% below peer median
Revenue Growth
+6.8%
vs +15.3% median
-55% below peer median
Net Margin
12.8%
vs 13.0% median
-2% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
GEN GEN Gen Digital Inc. | $12.2B | 7.7x | +6.8% | 12.8% | Buy | +62.4% |
CHK CHKP Check Point Software Technologies Ltd. | $12.3B | 11.3x | +4.0% | 38.4% | Hold | +30.9% |
IDX IDXX IDEXX Laboratories, Inc. | $44.8B | 38.8x | +9.3% | 24.6% | Buy | +37.3% |
CRW CRWD CrowdStrike Holdings, Inc. | $120.7B | 97.9x | +23.5% | -3.8% | Buy | +10.9% |
PAN PANW Palo Alto Networks, Inc. | $129.3B | 49.9x | +15.3% | 13.0% | Buy | +13.0% |
S S SentinelOne, Inc. | $5.0B | 83.5x | +17.7% | -45.0% | Buy | +17.8% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
GEN Dividend and Capital Return
GEN returns 4.8% total yield, led by a 2.54% dividend. Buybacks add another 2.2%.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
4.8%
Dividend + buyback return per year
Buyback Yield
2.2%
Dividend Yield
2.54%
Payout Ratio
48.7%
How GEN Splits Its Return
Div 2.54%
Buyback 2.2%
Dividend 2.54%Buybacks 2.2%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.50
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
0.0%
5Y Div CAGR
-47.5%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$272M
Estimated Shares Retired
14M
Approx. Share Reduction
2.2%
Shares Outstanding
Current diluted share count from the screening snapshot
624M
At 2.2%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.13 | — | — | — |
| 2025 | $0.50 | 0.0% | 1.6% | 3.5% |
| 2024 | $0.50 | 0.0% | 3.1% | 5.3% |
| 2023 | $0.50 | 0.0% | 8.4% | 11.4% |
| 2022 | $0.50 | 0.0% | 0.1% | 2.0% |
FAQ
7 questionsGEN Investor Questions
Common questions answered from live analyst data and company financials.
01Is Gen Digital Inc. (GEN) stock a buy or sell in 2026?
Gen Digital Inc. (GEN) is rated Buy by Wall Street analysts as of 2026. Of 21 analysts covering the stock, 11 rate it Buy or Strong Buy, 9 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $32, implying +62.4% from the current price of $20. The bear case scenario is $1 and the bull case is $63.
02What is the GEN stock price target for 2026?
The Wall Street consensus price target for GEN is $32 based on 21 analyst estimates. The high-end target is $32 (+62.4% from today), and the low-end target is $32 (+62.4%). The base case model target is $33.
03Is Gen Digital Inc. (GEN) stock overvalued in 2026?
GEN trades at 7.7x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Gen Digital Inc. (GEN) stock in 2026?
The primary risks for GEN in 2026 are: (1) Long-Term Care (LTC) Portfolio — Genworth's legacy LTC insurance portfolio presents significant profitability challenges due to lower renewal premiums and elevated mortality rates. (2) Enact Holdings Dependence — Genworth's financial stability is heavily reliant on Enact Holdings' ability to return capital and pay dividends. (3) Debt Load and Financial Leverage — Gen Digital carries a significant debt load, reflected in a high debt-to-EBITDA ratio. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Gen Digital Inc.'s revenue and earnings forecast?
Analyst consensus estimates GEN will report consensus revenue of $5.1B (+6.8% year-over-year) and EPS of $1.51 (+55.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $5.4B in revenue.
06When does Gen Digital Inc. (GEN) report its next earnings?
Gen Digital Inc. is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $0.65 and revenue of $1.2B. Over recent quarters, GEN has beaten EPS estimates 83% of the time.
07How much free cash flow does Gen Digital Inc. generate?
Gen Digital Inc. (GEN) generated $1.5B in free cash flow over the trailing twelve months — a free cash flow margin of 32.1%. GEN returns capital to shareholders through dividends (2.5% yield) and share repurchases ($272M TTM).