GEN Stock Forecast & Price Target

Gen Digital has demonstrated strong customer growth, with a consistent increase in direct customers for seven consecutive quarters and year-over-year growth spanning eight quarters. The company forecasts sustainable and balanced organic revenue growth in the mid-single digits over the next three years, accompanied by impressive operating margins that may exceed 60%, which is expected to drive non-GAAP EPS growth between 12% and 15%. Additionally, anticipated benefits from de-leveraging and improvements in interest rates are expected to further enhance EPS moving forward.

Gen Digital faces significant challenges that negatively impact its financial outlook, including estimated earnings per share (EPS) projected at $2.63 for CY/26, which represents a decline of 500 basis points from current estimates. Additionally, the integration of Avast poses operational risks, compounded by macroeconomic pressures that may lead to increased customer churn and overall business volatility. The company also faces rising debt expenses, which threaten to diminish expected EPS synergies over the next twelve months, further complicating its financial performance.