# Gen Digital (GEN.US)

Canonical: https://gigainvestors.com/s/GEN

Analysis as of: 2026-10-16T07:35:10.681Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $24.82 per share; close as of 2026-10-15.

Estimated value: low $27.56 per share, central $31.25 per share, high $36.17 per share. Buy at or below the central value $31.25 per share. Valuation as of 2026-10-16T07:35:10.681Z; scenarios are not confidence intervals.

Expected annual return: 11.9% at the stated quote. About 11.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.68×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.02×

- FY2018: 0.01×

- FY2019: 0.08×

- FY2020: 0.14×

- FY2021: 0.35×

- FY2022: 0.36×

- FY2023: 0.36×

- FY2024: 0.29×

- FY2025: 0.41×

- FY2026: 0.43×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.1%

- ROIC, second-lowest year: 0.5%

- Typical minus recent gross margin: 2.1 pp

- Typical gross margin (annual median): 80.5%

- Recent gross margin (lower of latest and 3-year median): 78.5%

- Years with nonpositive capital: 8

- Capital spending / revenue: 0.5%

- ROIC including acquisitions, ten-year median: 10.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -0.7%

- FY2018: 0.5%

- FY2019: 4.5%

- FY2020: 5.8%

- FY2021: 22.4%

- FY2022: 21.6%

- FY2023: >100%

- FY2024: 10.3%

- FY2025: 9.9%

- FY2026: 12.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.41×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.2B

- Net income, five-year total: $4.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -8.1 pp

- Working capital / revenue, final three-year average: 4.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.18×

- FY2023: 1.24×

- FY2024: 1.77×

- FY2025: 1.63×

- FY2026: 1.48×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.5% vs 10.3%

- Per-share earnings: 1.74 to 1.03 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: -$7.4B

- Cumulative retained earnings: $1.0B

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -6.3%

- Per-share value change: -$0.71

- Per-share value, starting three-year median: $1.74

- Per-share value, ending three-year median: $1.03

- Buybacks concentrated in cheaper years (correlation): 0.48

- Average buyback yield: 4.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $18B

- Cumulative net income, 10 years: $9.9B

- ROIC, first three-year median: 0.5%

- ROIC, last three-year median: 10.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.17

- FY2018: $1.74

- FY2019: $0.05

- FY2020: $6.05

- FY2021: $0.92

- FY2022: $1.41

- FY2023: $2.14

- FY2024: $0.95

- FY2025: $1.03

- FY2026: $1.57

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.27×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 15.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.59×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 5.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.6%

- FY2018: 1.3%

- FY2019: -9.2%

- FY2020: 61.4%

- FY2021: -2.4%

- FY2022: -2.0%

- FY2023: 3.6%

- FY2024: -9.2%

- FY2025: -3.7%

- FY2026: -3.7%

## Holders

## Price story

Price needs cash profits to shrink 2.1% a year for ten years · sales +27.1%

Story as of 2026-10-16T10:00:03.885Z; price observation 2026-10-15.

Price needs cash profits to shrink 2.1% a year for ten years

- 2025-08-08: Gen Digital raises annual revenue guidance to $4.8–$4.9B as MoneyLion integration accelerates ([seekingalpha.com](https://seekingalpha.com/news/4482149-gen-digital-raises-annual-revenue-guidance-to-4_8-4_9b-as-moneylion-integration-accelerates?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-06: Gen Digital raises annual revenue forecast on MoneyLion integration, cybersecurity demand ([finance.yahoo.com](https://finance.yahoo.com/news/gen-digital-raises-annual-revenue-210646307.html))

- 2026-08-06: Gen Digital Fiscal Q1 Adjusted Earnings, Revenue Rise; Guides Q2, Lifts 2027 Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/gen-digital-fiscal-q1-adjusted-204817507.html))

### Sales · FY2025–2026

sales +27.1%; source https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm; observed 2026-05-21.

- FY2017: $4.0B 

- FY2018: $4.8B 

- FY2019: $4.7B 

- FY2020: $2.5B 

- FY2021: $2.6B 

- FY2022: $2.8B 

- FY2023: $3.3B 

- FY2024: $3.8B 

- FY2025: $3.9B 

- FY2026: $5.0B 

### Gross margin · FY2026

gross margin 78.5%; source https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm; observed 2026-05-21.

- FY2017: 78.8% 

- FY2018: 78.7% 

- FY2019: 77.8% 

- FY2020: 84.2% 

- FY2021: 85.8% 

- FY2022: 85.4% 

- FY2023: 82.2% 

- FY2024: 80.8% 

- FY2025: 80.3% 

- FY2026: 78.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm (filed 2026-05-21); FY2026: revenue 5000000000; grossProfit 3923000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GEN.US: Gen Digital Inc. engages in the provision of cyber safety and trust-based solutions for individuals, families, and small businesses. The company offers security and performance management, identity protection, and online privacy, as well as technology platforms. It also provides restoration support services, digital reputation, and secure financial wellness. The company offers its products under the Norton, Avast, LifeLock, MoneyLion, Avira, AVG, ReputationDefender, and CCleaner brands. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona.

### Why customers stay

Margins ranged from 78.5% to 80.8% during 2024–26; it earns 10.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2024: grossProfit / revenue = 80.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2025: grossProfit / revenue = 80.3%.

- Source: https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm (filed 2026-05-21); FY2026: grossProfit / revenue = 78.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); 10-year return on capital observations [[2017,-0.006767754647477084],[2018,0.004876107075330879],[2019,0.045155393053016454],[2020,0.057834081379787745],[2021,0.22397618643994746],[2022,0.21582301372340296],[2023,1.201195219123506],[2024,0.10282538212135248],[2025,0.09887566137566138],[2026,0.1288519915371171]]; median 0.10085052174850692. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 634 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2018: growth capex 0; upkeep 142000000; owner earnings 189000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2019: growth capex 0; upkeep 207000000; owner earnings 73000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2021: growth capex 0; upkeep 6000000; owner earnings 619000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2022: growth capex 0; upkeep 6000000; owner earnings 990000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2023: growth capex 0; upkeep 6000000; owner earnings 1657000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2024: growth capex 0; upkeep 20000000; owner earnings 1072000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2025: growth capex 0; upkeep 15000000; owner earnings 1047000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm (filed 2026-05-21); FY2026: growth capex 0; upkeep 22000000; owner earnings 1444000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); Dividend observations: [[2017,222000000],[2018,211000000],[2019,217000000],[2020,7481000000],[2021,373000000],[2022,303000000],[2023,314000000],[2024,323000000],[2025,313000000],[2026,312000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm (filed 2026-05-21); FY2026: cash repurchases 634000000 USD.

### What could break it

"We are dependent upon Broadcom for certain engineering and threat response services" (SEC filing, May 2026)

- Source: https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm (filed 2026-05-21); We are dependent upon Broadcom for certain engineering and threat response services

### What the price says

The price assumes cash profits shrink 2.1% yearly over ten years; actual decline was 4.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); Ten-year compound average after fade. Initial solved rate -0.042029988885854574. Price 24.82; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 3.753731343283582 → FY2026 2.332794830371567. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $25.03 per share

- 2016-11: $24.39 per share

- 2016-12: $23.89 per share

- 2017-01: $27.55 per share

- 2017-02: $28.57 per share

- 2017-03: $30.68 per share

- 2017-04: $31.63 per share

- 2017-05: $30.31 per share

- 2017-06: $28.25 per share

- 2017-07: $30.99 per share

- 2017-08: $29.98 per share

- 2017-09: $32.81 per share

- 2017-10: $32.50 per share

- 2017-11: $28.97 per share

- 2017-12: $28.06 per share

- 2018-01: $27.23 per share

- 2018-02: $26.29 per share

- 2018-03: $25.85 per share

- 2018-04: $27.79 per share

- 2018-05: $20.78 per share

- 2018-06: $20.65 per share

- 2018-07: $20.22 per share

- 2018-08: $20.16 per share

- 2018-09: $21.28 per share

- 2018-10: $18.15 per share

- 2018-11: $22.11 per share

- 2018-12: $18.90 per share

- 2019-01: $21.02 per share

- 2019-02: $22.49 per share

- 2019-03: $22.99 per share

- 2019-04: $24.21 per share

- 2019-05: $18.73 per share

- 2019-06: $21.76 per share

- 2019-07: $21.56 per share

- 2019-08: $23.25 per share

- 2019-09: $23.63 per share

- 2019-10: $22.88 per share

- 2019-11: $24.90 per share

- 2019-12: $25.52 per share

- 2020-01: $28.42 per share

- 2020-02: $19.03 per share

- 2020-03: $18.71 per share

- 2020-04: $21.27 per share

- 2020-05: $22.78 per share

- 2020-06: $19.83 per share

- 2020-07: $21.45 per share

- 2020-08: $23.52 per share

- 2020-09: $20.84 per share

- 2020-10: $20.57 per share

- 2020-11: $18.23 per share

- 2020-12: $20.78 per share

- 2021-01: $21.07 per share

- 2021-02: $19.51 per share

- 2021-03: $21.26 per share

- 2021-04: $21.61 per share

- 2021-05: $27.66 per share

- 2021-06: $27.22 per share

- 2021-07: $24.82 per share

- 2021-08: $26.56 per share

- 2021-09: $25.30 per share

- 2021-10: $25.45 per share

- 2021-11: $24.85 per share

- 2021-12: $25.98 per share

- 2022-01: $26.01 per share

- 2022-02: $28.98 per share

- 2022-03: $26.52 per share

- 2022-04: $25.04 per share

- 2022-05: $24.34 per share

- 2022-06: $21.96 per share

- 2022-07: $24.53 per share

- 2022-08: $22.59 per share

- 2022-09: $20.14 per share

- 2022-10: $22.53 per share

- 2022-11: $22.96 per share

- 2022-12: $21.43 per share

- 2023-01: $23.01 per share

- 2023-02: $19.51 per share

- 2023-03: $17.16 per share

- 2023-04: $17.67 per share

- 2023-05: $17.54 per share

- 2023-06: $18.55 per share

- 2023-07: $19.45 per share

- 2023-08: $20.25 per share

- 2023-09: $17.68 per share

- 2023-10: $16.66 per share

- 2023-11: $22.08 per share

- 2023-12: $22.82 per share

- 2024-01: $23.48 per share

- 2024-02: $21.49 per share

- 2024-03: $22.40 per share

- 2024-04: $20.14 per share

- 2024-05: $24.83 per share

- 2024-06: $24.98 per share

- 2024-07: $25.99 per share

- 2024-08: $26.46 per share

- 2024-09: $27.43 per share

- 2024-10: $29.11 per share

- 2024-11: $30.85 per share

- 2024-12: $27.38 per share

- 2025-01: $26.91 per share

- 2025-02: $27.33 per share

- 2025-03: $26.54 per share

- 2025-04: $25.87 per share

- 2025-05: $28.48 per share

- 2025-06: $29.40 per share

- 2025-07: $29.49 per share

- 2025-08: $30.20 per share

- 2025-09: $28.39 per share

- 2025-10: $26.36 per share

- 2025-11: $26.37 per share

- 2025-12: $27.19 per share

- 2026-01: $23.99 per share

- 2026-02: $22.57 per share

- 2026-03: $18.83 per share

- 2026-04: $19.29 per share

- 2026-05: $25.79 per share

- 2026-06: $24.89 per share

- 2026-07: $27.45 per share

- 2026-08: $31.00 per share

- 2026-09: $22.02 per share

- 2026-10: $24.82 per share

## Annual estimated value (USD per share)

- FY2017: low $17.72 per share, central $19.24 per share, high $21.25 per share

- FY2018: low $16.50 per share, central $18.35 per share, high $20.81 per share

- FY2019: low $14.85 per share, central $16.47 per share, high $18.63 per share

- FY2020: low $4.10 per share, central $4.19 per share, high $4.31 per share

- FY2021: low $2.22 per share, central $2.32 per share, high $2.45 per share

- FY2022: low $5.12 per share, central $5.40 per share, high $5.77 per share

- FY2023: low $15.19 per share, central $17.14 per share, high $19.73 per share

- FY2024: low $19.45 per share, central $21.97 per share, high $25.32 per share

- FY2025: low $20.93 per share, central $23.61 per share, high $27.18 per share

- FY2026: low $25.99 per share, central $29.50 per share, high $34.18 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/849399/000084939926000017/gen-20260403.htm); period 2026-04-03, filed 2026-05-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.