Shares of Gen Digital (GEN +8.18%) climbed on Friday after the digital sentinel announced solid quarterly growth metrics and boosted its full-year profit forecast.
By the close of trading, Gen's stock price was up more than 8%.
Image source: Getty Images.
Gen Digital's strong growth momentum
Gen's revenue jumped 26% year over year to $1.2 billion in its fiscal 2026 third quarter ended Jan. 2. With brands like Norton and LifeLock, the cybersecurity company provides antivirus software, identity protection, and online privacy tools to almost 500 million users across over 150 countries.
"As AI transforms digital life and the threat landscape, consumers need protection and guidance they can trust," CEO Vincent Pilette said in a press release. "Our Q3 results confirm that Gen's platform strategy is resonating."
NASDAQ: GEN
Key Data Points
Better still, Gen's cash production is strengthening as it grows its revenue base. The company's year-to-date free cash flow surged 42% to over $1 billion, much of which Gen used to reward investors with dividends and stock buybacks.
"The strength of our financial model continues to generate substantial free cash flow enabling us to invest in growth and innovation while deploying nearly $700 million of capital to shareholders during the quarter," chief financial officer Natalie Derse said.
Management expects more AI-fueled gains
These robust results and positive ongoing sales trends prompted Gen to lift its full-year financial outlook. The company now projects revenue of $4.955 billion to $4.975 billion, up from a prior forecast of $4.92 billion to $4.97 billion. Gen also anticipates adjusted earnings per share of $2.54 to $2.56, up from $2.51 to $2.56.
"By uniting advanced intelligence and signals across security, identity, and financial wellness at unmatched scale, we're delivering personalized protection and contextual recommendations for our customers at the moments that matter the most," Pilette said.
