GEN Stock Forecast & Price Target

Gen Digital has demonstrated consistent growth in its customer base, with direct customers increasing for seven consecutive quarters and year-over-year growth sustained for eight quarters. Looking ahead, the company anticipates sustainable organic revenue growth in the mid-single digits and operating margins exceeding 60%, which are projected to contribute to non-GAAP EPS growth of 12-15% over the next three fiscal years. Additionally, further improvements in de-leveraging and interest rates are expected to enhance EPS performance going forward.

Gen Digital faces significant challenges that contribute to a negative outlook on its stock, including projected earnings per share (EPS) of $2.63 for CY26, which reflects a downward revision of 500 basis points from previous estimates. Additional pressures arise from potential increased customer churn and macroeconomic challenges that may hinder business performance, along with risks related to the integration of Avast and rising debt expenses that could negatively affect financial synergies over the next year. Furthermore, recent contractions in peer group valuation multiples suggest deteriorating confidence in the company's market position, further exacerbating the precarious financial outlook.