Gen Digital (GEN) Is Up 5.8% After Beating Q1 Estimates and Raising AI-Driven Guidance

• Gen Digital recently announced first-quarter fiscal 2026 results, reporting US$1.26 billion in revenue and US$0.64 in earnings per share, both ahead of analyst consensus, and raised its full-year guidance driven by heightened demand for AI-driven cyber safety products and the integration of MoneyLion.
• An important development was the launch of Norton Deepfake Protection on Norton 360 mobile apps, leveraging artificial intelligence to combat emerging AI-powered threats and further differentiate Gen Digital's product lineup.
• Next, we’ll explore how strong quarterly performance and new AI security offerings may reshape Gen Digital’s investment outlook.

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Gen Digital Investment Narrative Recap

The key investment belief for Gen Digital centers on the company’s ability to capitalize on strong demand for consumer cyber safety driven by its expanding AI-powered security solutions and the integration of MoneyLion’s financial wellness offerings. The recent earnings beat and upward guidance reinforce this catalyst, though the most pressing risk remains the potential for integration challenges with MoneyLion, which could add operational complexity; this risk was not materially affected by the latest results or product launches.

The introduction of Norton’s AI-powered Deepfake Protection is particularly relevant, addressing the rising tide of AI-enabled threats and reinforcing Gen Digital’s efforts to set its product suite apart in a competitive market. This highlights the near-term catalyst of growing consumer demand for advanced cyber safety, which management believes is supportive of future revenue and customer growth metrics.

By contrast, investors should be aware that unresolved integration risks remain around the MoneyLion acquisition and...

Read the full narrative on Gen Digital (it's free!)

Gen Digital's outlook anticipates $5.3 billion in revenue and $1.3 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 10.2% and a $657 million increase in earnings from the current $643.0 million level.

Uncover how Gen Digital's forecasts yield a $33.22 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community estimates place Gen Digital’s fair value between US$25 and US$45.34, illustrating broad differences in outlook. While many focus on the upside from AI-driven growth, others highlight how unresolved integration risks could impact the company's progress, suggesting more than one way to assess future performance.

Explore 4 other fair value estimates on Gen Digital - why the stock might be worth 18% less than the current price!

Build Your Own Gen Digital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Gen Digital research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Gen Digital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gen Digital's overall financial health at a glance.

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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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