The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 81 | 16.0x | 20.8x | Top tier | |
Growth | 83 | 27.1% | 6.1% | Top tier | |
Quality | 93 | 13.4% | 6.6% | Top tier | |
Safety | 45 | 3.0x | 0.7x | Around median | |
Capital Return | 65 | 1.93% | 2.02% | Around median | |
Momentum | 42 | -16.6% | 4.1% | Around median | |
Sentiment | 77 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Gen Digital Inc. is a company focused on consumer digital safety, privacy, identity, reputation, and financial protection, operating through brands and products such as Norton 360, Avast, Avira, LifeLock, MoneyLion, and Engine by Gen. Its revenue model relies on direct subscriptions for individuals, sales through partners, comprehensive protection memberships, as well as the Engine marketplace that connects consumers with personalized financial offers. In management’s presentation, the company is divided into Cyber Safety, with approximately $3.3 billion in revenue, and Trust-Based Solutions, approaching $1.7 billion, with a paid base of 79 million customers at the end of the fourth quarter of fiscal 2026.
In the fourth quarter of fiscal 2026, the company announced on the May 7, 2026 call non-GAAP revenue of $1.28 billion, up 27% on a reported basis and 9% on a pro forma basis, and bookings of $1.36 billion, up 27% reported and 10% pro forma. Non-GAAP operating income for the quarter was $641 million with an operating margin of 50%, while non-GAAP net income was $408 million and non-GAAP diluted EPS was $0.67, up 14% year over year. The latest quarterly EDGAR data available in the context for the third quarter of 2026 show revenue of $1.2 billion, gross profit of $972 million, net income of $192 million, and EPS of $0.31.
For fiscal 2026, management said revenue exceeded $5 billion for the first time, bookings reached $5.1 billion, and non-GAAP operating income was $2.5 billion with a 51% margin, while non-GAAP EPS reached $2.56, up 15%. The Cyber Safety segment grew revenue 3% pro forma with a 61% margin, while Trust-Based Solutions grew revenue 23% pro forma with a 30% margin. The company also generated free cash flow of $1.5 billion and reduced net leverage to 3 times, one year ahead of the planned schedule.
The analyst consensus in the provided data is Buy, with an average price target of $27, and both the high and low targets at the same level, indicating a very narrow expectation range from the analysts available in the context. Compared with the average target of $27, the live price quote accompanying the report indicates that the stock is below the consensus target, without needing to fix a variable price number in the text. The P/E multiple is not shown in the provided data, so the valuation reading appears more dependent on the expected non-GAAP EPS growth of 13% to 17% in fiscal 2027, and on the 52-week range of $17.78 to $32.22.
Figures in the text are as of 2026-07-07; the live price is shown at the top of the page.
Gen Digital sells consumer protection, privacy, identity, reputation, and financial protection services through products such as Norton 360, Avast, Avira, LifeLock, and MoneyLion. In Cyber Safety, the company focuses on protection from malware and fraud, VPN, and identity within comprehensive memberships. In Trust-Based Solutions, it combines LifeLock for identity and asset protection with MoneyLion for money management and Engine by Gen for delivering personalized financial offers. Management described this as a shift from protection alone to protection and financial empowerment within a single platform.
On the May 7, 2026 call, Gen reported non-GAAP revenue of $1.28 billion in the fourth quarter, up 27% reported and 9% pro forma. Bookings were $1.36 billion, and non-GAAP operating income was $641 million with a 50% margin. Non-GAAP net income was $408 million and diluted EPS was $0.67, up 14% year over year. This was the tenth consecutive quarter in which the company achieved or exceeded its targeted EPS growth range of 12% to 15%.
MoneyLion completed its first full fiscal year under Gen and delivered growth of more than 40%, while management said the business is quickly approaching $1 billion in annual revenue across personal financial management and Engine. Connected financial accounts reached 107 million in the fourth quarter, up 36% year over year. More than one-third of the paid customer base is now engaging with financial wellness, which is a metric management uses to assess synergy opportunities with Norton and LifeLock. Management also said that more than two-thirds of MoneyLion’s direct revenue comes from repeat customers, supporting the idea of stickiness and retention.
Automated analysis for informational purposes only — not investment advice.
Gen uses artificial intelligence in fraud protection through Genie, the fraud detection engine integrated into Norton 360, Avast, and partners such as ChatGPT. It also launched Agent Trust Hub and integrated agent protection into millions of Norton 360 users, with layers that include prompt injection detection, monitoring of agent connections, and checking agent skills before they are loaded. The company also announced work with OpenAI, Anthropic, xAI, Microsoft, and Google, and a partnership with xAI to develop AI native products. However, management explicitly said that Agentic revenue in fiscal 2027 will be modest but growing.
LifeLock is a pillar of the identity business within Trust-Based Solutions, and Gen redesigned the experience with three tiers that include stronger credit and financial monitoring and premium fraud protection. Management stated that the LifeLock mobile app now has a 4.9-star rating, and that the redesigned experience is available to about 3 million customers. LifeLock NPS reached 73, up 4 points year over year, and retention touched 90%. LifeLock Mobile revenue also grew by about 50%, and linked financial monitoring accounts increased by about 25%.
In fiscal 2026, Gen generated free cash flow of $1.5 billion, equivalent to more than 30% of revenue, and up 26% year over year. In the fourth quarter alone, operating cash flow was $452 million and free cash flow was $449 million. During that quarter, the company allocated about $200 million to repurchase 9 million shares and about $200 million to repay debt. Management also said it had $2.1 billion remaining under the repurchase authorization, and that net leverage reached 3 times EBITDA one year ahead of the planned schedule.