Overview
US cybersecurity and financial wellness firm's fiscal Q4 revenue rose 27%, beating analyst expectations
Adjusted EPS for fiscal Q4 was $0.67, beating analyst expectations
Company raised FY27 guidance for revenue and EPS
Outlook
Gen Digital raises FY27 revenue guidance to $5.33 bln-$5.43 bln
Company expects FY27 non-GAAP EPS of $2.85-$2.95
Gen Digital sees Q1 FY27 revenue of $1.3 bln-$1.33 bln and EPS of $0.68-$0.70
Result Drivers
CYBER SAFETY DEMAND - Co said Q4 results were driven by healthy demand for its Cyber Safety Platform
TRUST-BASED SOLUTIONS GROWTH - Double-digit revenue growth in Trust-Based Solutions contributed to quarterly performance
EXECUTION AND CASH FLOW - Management cited strong execution and extraordinary free cash flow generation as supporting growth momentum
Company press release: ID:nPn4GS7LJa
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.28 bln
$1.25 bln (7 Analysts)
Q4 Adjusted EPS
Beat
$0.67
$0.65 (7 Analysts)
Q4 EPS
$0.84
Q4 Operating Cash Flow
$452 mln
Q4 Operating Income
$803 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Gen Digital Inc is $25.97, about 32.7% above its May 6 closing price of $19.56
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)