Sohini Mondal
2 min read
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Valued at a market cap of $18 billion, Tempe, Arizona-based Gen Digital Inc. (GEN) is a leading provider of cyber safety solutions for individuals, families, and small businesses. Its portfolio includes well-known brands such as Norton, Avast, LifeLock, Avira, AVG, CCleaner, and ReputationDefender.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Gen Digital fits this criterion perfectly, exceeding the mark. The company delivers trusted services in cybersecurity, online privacy, identity protection, and performance optimization.
Shares of Gen Digital have dipped 8.5% from its 52-week high of $31.72. GEN stock has increased 6.1% over the past three months, underperforming the broader iShares Expanded Tech-Software Sector ETF’s (IGV) return of 12.8% during the same period.
Longer term, GEN stock has soared 19.1% over the past 52 weeks, lagging behind IGV's 23.9% return over the same time frame. However, Gen Digital’s shares have risen 5.4% on a YTD basis, slightly outpacing IGV's 4.9% gain.
The stock has climbed above its 50-day and 200-day moving averages since early May.
Shares of Gen Digital surged 8.2% following its strong Q4 2025 results on May 6, with adjusted EPS of $0.59 exceeding estimates and rising 11.3% year-over-year. Revenue grew 5% to over $1 billion, driven by heightened demand for AI-powered cyber safety solutions amid rising digital threats. The company reported an increase in its direct customer base to 40.4 million and improved its customer retention rate to 78%.
Additionally, an upbeat fiscal 2026 guidance, projecting up to $4.8 billion in revenue and EPS as high as $2.56, fueled investor confidence.
In comparison, its rival, Microsoft Corporation (MSFT), has underperformed GEN stock, with shares of MSFT rising nearly 6% over the past 52 weeks. Nevertheless, MSFT stock has gained 13.1% on a YTD basis, exceeding GEN’s performance.
Despite the stock’s outperformance relative to its industry peers over the past year, analysts are cautiously optimistic, with a consensus rating of "Moderate Buy" from seven analysts. It is currently trading below the mean price target of $32.28.
On the date of publication, Sohini Mondal 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. This article was originally published on Barchart.com
