What Gen Digital (GEN)'s AI-Powered Scam Protection Launch and Mixed Earnings Mean For Shareholders

• Gen Digital reported its second-quarter 2026 results on November 6, 2025, highlighting sales growth to US$1.22 billion and continued innovation in AI-powered cybersecurity, despite a decline in net income to US$134 million and lower earnings per share.
• A noteworthy insight is the company's global rollout of advanced scam protection features and the affirmation of its regular dividend amid near-term profitability pressures.
• We'll examine how the global expansion of Norton's AI scam protection further shapes Gen Digital's investment narrative and growth prospects.

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Gen Digital Investment Narrative Recap

To be a Gen Digital shareholder, you need to believe the company can leverage ongoing digitization and demand for cybersecurity, especially through the continued rollout of AI-powered protections, to achieve sustainable revenue and earnings growth. The recent quarterly results, marked by robust sales gains but lower net income, do not appear to materially change the near-term focus on product innovation as the main catalyst; integration risk from recent acquisitions, particularly MoneyLion, remains the key concern for margins and execution in the months ahead.

Among the latest developments, Norton's global expansion of AI-driven Scam Protection stands out. This broadening of advanced, real-time scam defenses across devices and channels could further support Gen Digital’s ability to cross-sell and retain customers, reinforcing the business case for its platform approach and potentially helping to offset pressures from price competition and shifting customer preferences.

Yet, it is important to remember, in contrast to these innovation milestones, integration risk from new acquisitions is still a factor that investors should be aware of...

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

Gen Digital's outlook foresees $5.3 billion in revenue and $1.2 billion in earnings by 2028. This is based on analysts' assumptions of 7.7% annual revenue growth and a $603 million increase in earnings from the current $597 million.

Uncover how Gen Digital's forecasts yield a $33.74 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span from US$25.00 to US$34.25 per share, revealing broad disagreement. While many focus on growth, integration risk from acquisitions remains a central challenge shaping future performance.

Explore 6 other fair value estimates on Gen Digital - why the stock might be worth just $25.00!

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 2 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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