Gen Digital Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
Gen Digital trades at 13.9x P/E and 9.6x EV/EBITDA — roughly 58% and 60% below the peer median — and FY2026 results showed revenue growing 27.1% to $5.0B with operating margin expanding to 43.1%.
However, Q1 FY2027 (ended 3 Jul) YoY revenue growth decelerated sharply to 6.3% from the 25–30% range posted across the four prior quarters, indicating that the lapped Avast merger tailwinds have faded. With the stock having rebounded from $20.85 to $24.16 as of 16 Oct and Q2 FY2027 results scheduled for October 28, the risk/reward is balanced; hold pending a clearer read on organic growth.
What could go wrong
- Growth deceleration. Q1 FY2027 YoY revenue growth of 6.3% versus 25–30% in the four prior quarters suggests lapped merger benefits have largely rolled off and organic growth is mid-single-digit.
- Leverage. Total debt of $8.26B against stockholders' equity of $2.61B as of fiscal year ended 3 Apr leaves limited balance-sheet flexibility.
- Persistent insider selling. Net insider disposition of 827,706 shares worth $23.6M over the trailing 24 months, against just 3 acquisition events in the same window.
- Catalyst event risk. Q2 FY2027 earnings release on October 28, 2026 could disappoint if the growth deceleration seen in Q1 FY2027 persists.
What would change my mind
Where this comes from: peer comparison · FY26 fundamentals · quarterly results · technicals. Orin's read on GEN; not advice.
How has the share price moved?
Down 9.6% over twelve months, from $26.84 on 27 Oct 2025 to $24.25 at the Tue 27 Oct 2026 close. Its highest close in that time was $31.41 on 14 Sep 2026; the last close is 22.8% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 36.1M, on 20 Mar 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All GEN filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $1.3B | 0.0% |
| FMR | $1.2B | 0.1% |
| Vanguard Capital Management | $887.9M | 0.0% |
| State Street | $777.6M | 0.0% |
| Vanguard Portfolio Management | $757.2M | 0.0% |
| Ameriprise Financial | $690.3M | 0.1% |
| Geode Capital Management | $391.8M | 0.0% |
| Invesco | $325.7M | 0.0% |
| Morgan Stanley | $207.6M | 0.0% |
| Norges Bank | $159.3M | 0.0% |
78 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 77 Form 4 filings; open-market trades net −$23.6M. Of the 50 on hand, 2 were open-market purchases and 10 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about GEN
Orin answers questions about GEN from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 13.9× its last 12 months of profit (Tue 27 Oct close) — higher than in 2 of its last 5 fiscal years (middle 18.7×); the typical Technology company on the NASDAQ is at 46.1×.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 13.9×below usual | 18.7× | 46.1× |
| P/S | 2.86×below usual | 3.75× | — |
| EV/EBITDA | 9.6×below usual | 13.5× | — |
| P/B | 5.5×near usual | 5.7× | — |
- "Its usual" is the middle of its own last 5 fiscal years.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
The analysts' average 12-month price target is $25.50 (from $24 to $27) — 5% above the Tue 27 Oct close price. That is their published opinion, not Orin's.
$25.50
$24 – $27 · +5% against the last close
- 1 buy or overweight
- 4 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 13.9× its last 12 months of profit. Only 1 of the 1 companies it is compared to made a profit (VRSN 32.7×), so there is no typical P/E.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| GENGen Digital Inc. | $15B | 13.9× | 9.6× | 78.0% | 20.7% | 42% |
| VRSNVeriSign, Inc. | $27B | 32.7× | 23.8× | 88.6% | 49.1% | n/m |
- VRSN: return on equity is not meaningful (n/m) — book value is below zero.
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 13.9× its last 12 months of profit (Tue 27 Oct close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now13.9×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Technology companies on the NASDAQ were priced at a typical 46.1× their yearly profit (Tue 27 Oct close).
- Now46.1×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $119 a share — 394% above the $24.13 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $119 | 394% above $24.13 |
| Levered | $104 | 332% above $24.13 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.