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Gen Digital to Report Q1 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • Gen Digital expects fiscal first-quarter 2027 revenues of $1.3-$1.325 billion and EPS of 68-70 cents.
  • GEN benefits from demand for AI-powered cybersecurity, identity protection and financial safety solutions.
  • Macroeconomic uncertainty and weak consumer sentiment could hurt GEN's prospects in the near term.

Gen Digital (GEN - Free Report) is scheduled to report first-quarter fiscal 2027 results on Aug. 6, after market close.

GEN expects non-GAAP revenues in the band of $1.3-$1.325 billion for the quarter. The Zacks Consensus Estimate for revenues is pegged at $1.30 billion, indicating 3.7% year-over-year growth.

For the fiscal first quarter, Gen Digital expects non-GAAP earnings in the range of 68-70 cents per share. The consensus mark for the same is pegged at 69 cents per share, suggesting a year-over-year rise of 7.8%. The estimate has remained unchanged over the past 30 days.

GEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.25%.

Gen Digital Inc. Price and EPS Surprise

Gen Digital Inc. Price and EPS Surprise

Gen Digital Inc. price-eps-surprise | Gen Digital Inc. Quote

Factors to Note for GEN's Q1 Earnings

Gen Digital is expected to have gained from sustained demand for cybersecurity, identity protection and financial safety solutions due to the rapid rise in cyber threats, particularly AI-enabled scams. The emergence of cyber safety and financial wellness is likely to have been a tailwind for Gen Digital in the to-be-reported quarter.

Robust demand for identity theft protection solutions, dark web monitoring, social media monitoring, stolen wallet assistant and ID restoration is expected to have been positive for the quarter under review. Traction in Gen Digital’s unified AI-driven platform, combining data from security, identity and financial behavior and innovation in higher-tier subscriptions like Norton 360 and strong momentum in MoneyLion, is likely to have reinforced monetization tailwinds in the first quarter of fiscal 2027.

Momentum in the quarter is likely to have been supported by the AI-powered Genie Scam Protection feature, Norton Deepfake Detection and Norton Neo. An increase in client bookings, supported by strong retention, international expansion and strategic partnerships, is likely to have aided top-line growth in the fiscal first quarter.

However, Gen Digital’s near-term prospects might have been hurt by growing global economic slowdown concerns amid ongoing macroeconomic uncertainties and geopolitical issues. Weak consumer sentiment could impact discretionary spending on subscriptions. This does not bode well for Gen Digital’s prospects in the near term.

What Our Model Says About GEN

Our proven model does not conclusively predict an earnings beat for GEN this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

GEN has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Arista Networks, Inc. (ANET - Free Report) has an Earnings ESP of +3.08% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks is set to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for Arista Networks’ second-quarter 2026 earnings is pegged at 89 cents per share, unchanged over the past 30 days, indicating a rise of 21.9% from the year-ago quarter’s reported figure.

AMETEK (AME - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #2 at present.

AMETEK is slated to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for AMETEK’s second-quarter 2026 earnings is pegged at $1.99 per share, unchanged over the past 30 days, indicating a rise of 11.8% from the year-ago quarter’s reported figure.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +1.56% and carries a Zacks Rank #2 at present.

Advanced Micro Devices is set to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for Advanced Micro Devices’ second-quarter earnings is pegged at $1.61 per share, up by a penny over the past 30 days, indicating a rise of 235.4% from the year-ago quarter’s reported figure.

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