Orin
GENNasdaq·Software - Infrastructure

Gen Digital Inc.

Market cap $14.5BP/E 13.9× trailingGross margin 78.0%
$24.25
−0.16 (−0.66%)Tue 27 Oct close 16:00 ET
52-wk $17.78 – $31.65
Orin's take
6out of 10 — how sure Orin is of this read

Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.

Refreshed 18 Oct, the 9th take on GEN. A new filing or a print queues the next refresh.

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

Q2 FY2027 earnings. October 28 release shows YoY revenue growth re-accelerating above 10% with operating margin holding in the low-40% rangebullish
Q2 FY2027 earnings. YoY revenue growth slows further below 5% or full-year guidance is cutbearish
Technical breakout. Stock closes above the 50-day MA of $27.16 on rising volumebullish
Deleveraging. Visible paydown of total debt from $8.26B alongside sustained FCF near or above $1.5B annuallybullish

Where this comes from: peer comparison · FY26 fundamentals · quarterly results · technicals. Orin's read on GEN; not advice.

How has the share price moved?

27 Oct 2025 – 27 Oct 2026

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.

Jan 2026AprJulOct
    • 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).

    Largest holders · 13F Q2 2026

    Money flow
    FilerPositionOf fund
    BlackRock$1.3B0.0%
    FMR$1.2B0.1%
    Vanguard Capital Management$887.9M0.0%
    State Street$777.6M0.0%
    Vanguard Portfolio Management$757.2M0.0%
    Ameriprise Financial$690.3M0.1%
    Geode Capital Management$391.8M0.0%
    Invesco$325.7M0.0%
    Morgan Stanley$207.6M0.0%
    Norges Bank$159.3M0.0%

    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

    its filings · its transcripts · its numbers

    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?

    Tue 27 Oct close

    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×.

    MeasureNowIts usualSector
    P/E13.9×below usual18.7×46.1×
    P/S2.86×below usual3.75×—
    EV/EBITDA9.6×below usual13.5×—
    P/B5.5×near usual5.7×—
    • "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?

    5 firms rated it in the last 18 months · 27 Oct

    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.

    Average price target

    $25.50

    $24 – $27 · +5% against the last close

    Their ratings
    • 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?

    1 of 1 with a profit

    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.

    CompanyMarket valueP/EEV/EBITDAGross marginNet marginROE
    GENGen Digital Inc.$15B13.9×9.6×78.0%20.7%42%
    VRSNVeriSign, Inc.$27B32.7×23.8×88.6%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?

    Tue 27 Oct

    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?

    Now–Now · Tue 27 Oct

    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?

    computed 27 Oct at $24.13

    A standard cash-flow model puts it at $119 a share — 394% above the $24.13 price it was computed against (27 Oct).

    ModelValue a shareAgainst the price then
    Standard$119394% above $24.13
    Levered$104332% 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.