Gen Digital (GEN): Assessing Valuation Following New AI Cybersecurity Launches and Q2 2026 Earnings Anticipation

Gen Digital (GEN) is in the spotlight this week as investors watch the company’s Q2 2026 earnings release, which follows a string of major updates to its cybersecurity offerings. Recent product launches, including a global expansion of Norton Scam Protection and the addition of AI-driven tools like Deepfake Detection, are positioning Gen Digital for potential growth at a time when cyber threats remain a key concern across industries.

See our latest analysis for Gen Digital.

Gen Digital’s share price has pulled back in recent weeks, finishing at $25.87 and posting a 7.01% decline over the past month, even as investor anticipation builds around upcoming earnings and the strategic expansion of its AI-powered product lineup. While short-term price momentum has faded, the stock still boasts a three-year total shareholder return of 27.6% and an impressive 48.7% gain over five years. This suggests that long-term holders have been rewarded amid ongoing innovation and recent acquisitions.

Looking beyond Gen Digital, now is a great time to see what other tech and AI leaders are gaining traction. See the full list for free.

So with shares trading 26% below analyst price targets and optimism building around new AI-driven products, are investors looking at an undervalued cybersecurity leader, or has the market already priced in its future growth?

Most Popular Narrative: 23.3% Undervalued

Gen Digital’s most widely followed valuation narrative pins fair value at $33.74, notably above the recent closing price of $25.87. Analysts are pricing in a significant earnings inflection and operational transformation, creating the foundation for a bold outlook.

The transition to a high-margin, recurring-revenue subscription model, now bolstered by MoneyLion's rapidly scaling, soon-to-be-membership-based financial wellness business, enhances revenue predictability, boosts ARPU, and expands operating margins. There is further upside potential as financial wellness features and cross-segment bundling are integrated into the core offering.

Read the complete narrative.

How is this narrative justifying such a gap with the current share price? A huge part of the answer lies in forecasts for both margins and top-line expansion that defy typical industry patterns. Find out which financial levers and future improvements are built into this bullish scenario.

Result: Fair Value of $33.74 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition from industry giants and difficulties integrating new acquisitions could present challenges for Gen Digital's growth and put pressure on its long-term margins.

Find out about the key risks to this Gen Digital narrative.

Build Your Own Gen Digital Narrative

If the current outlook doesn’t match your own perspective, or you’d rather investigate the numbers independently, you can craft your own narrative in just minutes. Do it your way

A great starting point for your Gen Digital research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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