Gen Digital Inc. (GEN)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look reasonably priced because strong cash generation is offset by heavy debt.

At $28.25, roughly 599 million shares imply a $16.9 billion equity value; adding $7.59 billion of net debt produces a $24.5 billion total business value. Trailing net income was about $1.05 billion, while free cash flow—cash left after operations and equipment spending—was approximately $1.55 billion. That equals about 16 times earnings and 11 times free cash flow. The lower 9.7 times management-adjusted earnings figure excludes significant costs, supporting a fair-priced verdict rather than clear undervaluation.

Big pictureGrowth is improving, but newer financial products make results somewhat less predictable.

Fiscal 2026 revenue rose 27% to $5.00 billion, largely reflecting MoneyLion’s addition. First-quarter 2027 reported growth slowed to 6%, partly because the quarter had 13 weeks versus 14 previously; management’s comparable measure showed 11% growth. Financial-wellness and identity revenue increased 26% to $490 million, while core cyber-safety revenue fell 3% to $846 million. Partner revenue grew 34%, versus 1% for direct revenue. The bull case is successful cross-selling; the bear case is greater exposure to consumer transactions and partner activity.

Business strengthSubscriptions produce durable cash, while buybacks are now reducing the share count.

Trailing operating cash flow reached about $1.57 billion and equipment spending was only $22 million, showing a cash-rich, low-investment model. However, July debt remained $8.16 billion against just $564 million of cash; net debt was about 2.9 times trailing earnings before interest, taxes and non-cash charges. During the trailing year, Gen spent roughly $600 million on buybacks and $311 million on dividends. Shares fell from 616 million to 599 million despite about $225 million of stock compensation, so repurchases more than offset employee-share dilution.

What could change the storyFaster debt reduction would create upside, while weaker financial-wellness growth would expose downside.

Management now expects fiscal 2027 revenue of $5.375–$5.475 billion and adjusted earnings of $2.87–$2.97 per share. The current price requires roughly $1.5 billion of annual free cash flow to remain durable and comparable revenue growth to stay near the high single digits. The valuation would look more attractive if quarterly free cash flow remains above roughly $350 million, net debt falls below $7 billion, and cyber-safety revenue resumes growth. Slowing partner activity or persistent core-product contraction would weaken those assumptions and make the debt burden more important.

$28.25 price considered

AI: News

First-quarter beat and raiseQuarterly sales beat guidance, cash stayed strong, and management raised the full-year outlook.

On August 6, Gen reported first-quarter revenue of $1.336 billion, diluted earnings of $0.36 per share and $430 million of free cash flow. It raised fiscal 2027 revenue guidance by $50 million at both ends, to $5.375–$5.475 billion, and adjusted earnings guidance to $2.87–$2.97. Shares closed 3.81% higher at $29.17 on August 7, with 11.2 million shares traded. The timing suggests the report influenced sentiment, although it does not prove sole causation.

Annual outlook resetRecord annual results and ambitious new guidance sharply lifted expectations for future growth.

On May 7, Gen reported fiscal 2026 revenue of $5.00 billion, up 27%, and free cash flow of $1.523 billion. Its initial fiscal 2027 forecast called for $5.325–$5.425 billion of revenue and adjusted earnings of $2.85–$2.95 per share. The following session, the stock climbed 12.33%, from $20.19 to $22.68, on 17.3 million shares. That reaction followed the announcement closely, though broader market forces may also have contributed.

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Free cash flow

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Total cash / debt

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$5.00B	$3.94B	$3.80B	$3.32B	$2.80B	$2.55B	$2.49B	$2.46B	$2.56B	$4.02B	$3.60B	$3.96B	$6.68B	$6.91B	$6.73B	$6.19B	$5.99B	$6.15B	$5.87B
Gross profit	$3.92B	$3.16B	$3.07B	$2.73B	$2.39B	$2.19B	$2.10B	$2.00B	$2.10B	$3.17B	$2.98B	$3.23B	$3.39B	$5.73B	$5.65B	$5.14B	$4.88B	$4.92B	$4.65B
Research & development	$409.0M	$329.0M	$332.0M	$313.0M	$253.0M	$267.0M	$328.0M	$420.0M	$455.0M	$823.0M	$748.0M	$812.0M	$722.0M	$1.03B	$969.0M	$862.0M	$857.0M	$870.0M	$895.0M
Operating expenses	$1.80B	$1.55B	$1.96B	$1.52B	$1.38B	$1.29B	$1.74B	$1.84B	$2.25B	$3.27B	$2.53B	$3.08B	$3.25B	$4.63B	$4.54B	$4.26B	$3.95B	$11.39B	$4.05B
Operating income	$2.12B	$1.61B	$1.11B	$1.21B	$1.00B	$896.0M	$355.0M	$158.0M	−$154.0M	−$100.0M	$457.0M	$154.0M	$144.0M	$1.11B	$1.10B	$880.0M	$933.0M	−$6.47B	$602.0M
EBITDAderived	$2.61B	$2.03B	$1.59B	$1.53B	$1.15B	$1.05B	$716.0M	$773.0M	$486.0M	$392.0M	$756.0M	$509.0M	$511.0M	$1.74B	$1.76B	$1.53B	$1.67B	−$5.63B	—
Net income	$973.0M	$643.0M	$607.0M	$1.33B	$836.0M	$554.0M	$3.89B	$31.0M	$1.14B	−$106.0M	$2.49B	$878.0M	$898.0M	$755.0M	$1.19B	$597.0M	$714.0M	−$6.79B	$410.0M
Basic EPSper diluted share	$1.59	$1.04	$0.95	$2.17	$1.44	$0.94	$6.32	$0.05	$1.85	-$0.17	$3.71	$1.27	$1.29	$1.08	$1.60	$0.77	$0.88	-$8.17	$0.47
Diluted EPSper diluted share	$1.57	$1.03	$0.95	$2.14	$1.41	$0.92	$6.05	$0.05	$1.70	-$0.17	$3.71	$1.26	$1.28	$1.06	$1.59	$0.76	$0.87	-$8.17	$0.46

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$537.9K disclosed value

Sells (SEC code S)9$13.88M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 10, 2026Form 4	Vlcek OndrejDirector	SellCommon Stock	100.0K	$24.78	$2.48M	3.83M
Jun 4, 2026Form 4	Chrystal John CDirector	BuyCommon Stock	3.0K	$27.06	$81.2K	31.4K
Feb 17, 2026Form 4	DERSE NATALIE MARIECFO	SellCommon Stock	794	$23.62	$18.8K	456.7K
Dec 10, 2025Form 4	Vlcek OndrejDirector	SellCommon Stock	113.7K	$27.12	$3.08M	3.93M
Nov 13, 2025Form 4	Chrystal John CDirector	BuyCommon Stock	5.0K	$27.14	$135.7K	28.4K

Review ownership filings at SEC.gov ↗

Gen Digital Inc. (GEN)

Financial charts

Financial statements

Insider buys & sells