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Stocks
Gen Digital Inc.
EL7 Factor Analysis
How we score this
Overall92
Excellent — top fifth of the marketSuper StockF 7/9DistressBetter than 92% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
75
17.0x▲17.6xTop tier
▸
Growth
81
20.2%▲7.1%Top tier
▸
Quality
95
14.5%▲4.5%Top tier
▸
Safety
49
3.0x▼2.6xAround median
▸
Capital Return
51
1.72%▼2.15%Around median
▸
Momentum
77
-2.1%▼2.3%Top tier
▸
Sentiment
40
7▲3Around median
GEN

GEN Gen Digital Inc.

Gen Digital Inc. · NASDAQ
Market Closed
29.01
▼ ⁦-3.97%⁩ (-1.20)
Market Cap$17.4B
Beta1.20
52w Low52w High
17.7831.65
Last Week
⁦-3.20%⁩
Last Month
⁦-1.89%⁩
Last 3 Months
⁦+5.38%⁩
Last Year
⁦-3.94%⁩
Fair Value
Current price$29
Analyst target · 3 analysts
$29
⁦-2%⁩
See it fairly priced
Range ⁦$27–$30⁩
vs
DCF (estimate)
$26
⁦-11%⁩
Sees it slightly overvalued
⁦9.7⁩% discount · ⁦4⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$26–$29⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Annual plan
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Monthly plan
$29/mo

Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 3 analysts setting price target
$28.50
⁦-1.8%⁩
Current Price $29.01·Median $28.50
Low
$27.00
High
$30.00
Current price
$29.01
Average target
$28.50
Street summary

Target Price Stability with Limited Dispersion

The consensus target price did not change over one, seven, or thirty days, remaining at 28.5 versus a current price of 29.01. The range is between 27 and 30 across three analysts, reflecting limited dispersion in estimates and no collective shift toward greater optimism or pessimism. The number of counted analysts increased from two to three during some periods, but this did not change the consensus.

As of 2026-09-18
Revisions momentum · 30d
⁦0.0%⁩
Average rating
★ 3.45
Hold
Analyst coverage
⁦11 (+1)⁩
New coverage
Buy conviction
45%
Mixed
Target dispersion
10%
Analyst ratings over time11 analysts rating
5
6
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.67 → 3.45
Recent analyst moves
  • = Reiterate2026-08-07
    RBC Capital
    Sector Perform
  • = Reiterate2026-07-16
    RBC Capital
    Sector Perform
  • = Reiterate2026-05-08
    Barclays
    —· $27.00
Premium content
Key Financials

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.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    16.96x
    7.02x56.18x
    Very cheap
  • Forward P/E
    9.67x
    5.21x41.67x
    Very cheap
  • EV / EBITDA
    9.66x
    4.43x35.48x
    Very cheap
  • FCF Yield
    8.9%
    -57.1%10.7%
    Strong
  • Revenue Growth YoY
    20.2%
    -18.1%67.2%
    Near median
  • EPS Growth YoY
    76.3%
    -155.6%189.9%
    Above average
  • Gross Margin
    78.0%
    13.2%79.5%
    Strong
  • ROIC
    14.5%
    -63.6%26.8%
    Strong
  • Net Debt / EBITDA
    3.00x
    0.26x3.23x
    Near median
  • Dividend Yield
    1.7%
    0.0%3.9%
    Moderate
  • Payout Ratio
    29.5%
    4.5%95.3%
    Moderate
  • Altman Z-Score
    1.49
    -9.8713.97
    Near median
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-08-06 data

Company Overview

Gen Digital operates through a consumer platform that combines digital security, privacy, identity protection, and financial wellness. The Cyber Safety segment includes the Norton, Avast, and Avira brands and generates revenue from subscriptions and multi-tier memberships that include malware and fraud protection, VPN services, and identity monitoring and restoration; the Trust-Based Solutions segment includes LifeLock and MoneyLion products such as Instacash and Credit Builder Plus, alongside Engine Marketplace, which connects consumers with financial and insurance offers in exchange for partnership and embedded marketplace revenue.

In Q1 fiscal 2027, revenue under EDGAR was approximately $1.3 billion, gross profit was $1.0 billion, net income was $215 million, and earnings per share were $0.36. On the non-GAAP basis used in the August 6, 2026 earnings call, the company recorded revenue of $1.34 billion, up 11%, net income of $431 million, and diluted earnings per share of $0.71, up 19%, while operating margin was 50% and gross margin was 82%.

The growth mix varied between the two segments in Q1 fiscal 2027: Cyber Safety revenue grew 4% with a segment margin of 61%, while Trust-Based Solutions revenue grew 24% and bookings grew 25%, with a segment margin of 30%. The number of paying customers reached 81 million, compared with 79 million in the previous quarter and 76 million a year earlier, while the partner business grew 31% and its annualized revenue exceeded $1 billion.

What's Driving the Stock

  • On August 6, 2026, management raised its fiscal 2027 revenue outlook to $5.375–$5.475 billion, representing growth of 9%–11% instead of 8%–10%, and raised its non-GAAP earnings-per-share outlook to $2.87–$2.97, representing growth of 14%–18%.
  • Engine Marketplace has become one of Gen Digital’s fastest-growing categories, with its annualized revenue exceeding $500 million, more than 30 partners added during Q1 fiscal 2027, and network inquiries increasing to more than 425 million annually, alongside new expansion into insurance through the Trellis infrastructure.
  • Customer spending within the protection ecosystem is expanding: Norton’s cross-sell rate rose to 27%, the highest Norton 360 tiers grew at double-digit rates, and membership penetration across Norton, Avast, and Avira exceeded 60%, while annual bookings for the highest Norton 360 tiers approached $500 million.
  • AI products are strengthening the core protection offering; the anti-scam engine blocked more than half a billion attacks during Q1 fiscal 2027, Sage became available to 25 million customers through Norton 360 and Avast One, and the number of daily active users of the Norton Neo browser doubled.
  • MoneyLion supports the company’s expansion into financial wellness; the number of connected financial accounts exceeded 110 million, compared with 75 million when MoneyLion was acquired, 35% of the paying customer base now engages with financial wellness services, and two-thirds of personal finance management revenue comes from repeat customers.
  • In Q1 fiscal 2027, the company generated operating cash flow of $434 million and free cash flow of $430 million, and used $45 million to reduce debt and $100 million to repurchase shares, while reducing the weighted share count to 603 million, down 21 million shares year over year.

Buying & Selling Case

▲ Buying Case4 pts

  • +Gen Digital’s model combines double-digit growth with high operating profitability; revenue grew 11% and non-GAAP earnings per share grew 19% in Q1 fiscal 2027, while operating margin remained stable at 50%.
  • +The differing growth rates of the two segments provide an attractive mix: Cyber Safety delivers mid-single-digit growth and a margin of 61%, while Trust-Based Solutions adds faster revenue growth of 24%, with its margin remaining at 30%.
  • +Retention and upselling indicators demonstrate the depth of customer relationships; LifeLock retention approached 90% and its Net Promoter Score exceeded 70, while average revenue per user across the ecosystem rose 8%–10% compared with its level two years earlier.
  • +Liquidity supports a policy that combines investment, deleveraging, and capital returns; the company ended Q1 fiscal 2027 with $564 million in cash and more than $2 billion in available liquidity, and returned $181 million to shareholders through repurchases and dividends.

▼ Selling Case6 pts

Valuation

The average analyst price target is $28.5, within a narrow range of $27 to $30, with a consensus rating of “Buy”; the average equals approximately 91% of the 52-week range high of $31.29, while the range low is $17.78. An August 9, 2026 article cited a price-to-earnings multiple of 17.1 times and a free cash flow yield of 8.8%, metrics that should be weighed against the fiscal 2027 revenue growth outlook of 9%–11% and earnings-per-share growth outlook of 14%–18%, as well as the risks of a lower gross margin and leverage of 2.95 times.

BuyAnalyst target: $28.5(-1.8%)

Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.

FAQ

What drove Gen Digital’s growth in Q1 fiscal 2027?

Non-GAAP revenue rose 11% to $1.34 billion, the fastest growth since Gen Digital was created, while bookings increased 11% to $1.28 billion. Cyber Safety grew 4%, while Trust-Based Solutions revenue rose 24% and its bookings increased 25%. Engine Marketplace, MoneyLion, and LifeLock contributed to the acceleration, alongside the number of paying customers reaching 81 million.

What is Gen Digital’s outlook for fiscal 2027?

On August 6, 2026, the company raised its fiscal 2027 revenue outlook to a range of $5.375–$5.475 billion, representing growth of 9%–11%. It also raised its non-GAAP earnings-per-share outlook to $2.87–$2.97, representing growth of 14%–18%. For Q2 fiscal 2027, it projected revenue between $1.325 billion and $1.35 billion and earnings per share between $0.71 and $0.73.

How does Gen Digital generate revenue from MoneyLion and Engine Marketplace?

MoneyLion generates revenue from personal finance management services, including Instacash and Credit Builder Plus, and two-thirds of this business’s revenue came from repeat customers in Q1 fiscal 2027. Engine Marketplace connects consumers with financial and insurance offers through an AI-powered matching engine and partner network, and its annualized revenue exceeded $500 million. Engine added more than 30 partners during the quarter and expanded into insurance using the Trellis infrastructure, with distribution partnerships that include Equifax.

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

−
The fastest-growing part of Gen Digital increasingly depends on Trust-Based Solutions and Engine Marketplace, which are less profitable than Cyber Safety; the segment margins were 30% and 61%, respectively, and gross margin declined to 82% because of the product mix and revenue sharing, with management expecting this effect to continue as new partners and categories are added.
  • −The contribution from newer products remains in the proof-of-concept stage: management described MoneyLion One as being in its early stages and said revenue from agentic AI solutions would be limited in fiscal 2027, making the return potential from Norton Neo, Family Assistant, ATH, and Sage less clear than their current usage growth.
  • −Financial wellness services are currently concentrated in the United States, while management described international expansion as a long-term path; therefore, a significant portion of the expected growth acceleration depends on the success of MoneyLion, Engine, and financial partnerships within a single primary geographic market before the repeatability of that growth is proven globally.
  • −Execution of synergy and investment targets remains a critical factor; management linked part of the guidance increase to greater confidence in $100 million of revenue synergy opportunities, while directing additional investment toward AI, research and development, marketing, product launches, and new categories.
  • −Net leverage was 2.95 times at the end of Q1 fiscal 2027, despite a $45 million reduction in debt, and the company recorded interest expense of $119 million during the quarter; this consumes a meaningful portion of profit and cash flow before they reach shareholders.
  • −Insider transactions during the three months ended August 27, 2026 showed net selling of $17.9 million, with seven sales compared with one purchase. This remains a weak signal on its own because insider sales may be prearranged, and the available information contains no evidence to the contrary.
  • What role does AI play in Gen Digital’s products?

    The company uses AI to detect fraud, personalize protection offers, and match consumers with financial products. During Q1 fiscal 2027, the anti-scam engine blocked more than half a billion attacks, while Sage provided multilayered protection to 25 million customers through Norton 360 and Avast One. The number of daily active users of the Norton Neo browser also doubled, but management clarified that revenue from agentic products would remain limited in fiscal 2027.

    What are Gen Digital’s key profitability and liquidity indicators?

    Non-GAAP operating margin was 50% in Q1 fiscal 2027, with a margin of 61% for Cyber Safety and 30% for Trust-Based Solutions. The company generated operating cash flow of $434 million and free cash flow of $430 million, and ended the quarter with $564 million in cash. It reduced debt by $45 million to net leverage of 2.95 times, then returned $181 million to shareholders through share repurchases and dividends.

    What cash dividend did Gen Digital announce for Q1 fiscal 2027?

    The board approved a regular quarterly cash dividend of $0.125 per common share. August 17, 2026 was set as the record date for eligible shareholders, and September 9, 2026 as the payment date. During Q1 fiscal 2027, the company paid $81 million in cash dividends, alongside $100 million in share repurchases.