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Gen Digital Soars on AI-Driven Cyber Threat Demand
8 May
Summary
- Gen Digital forecasts fiscal 2027 revenue and profit above expectations.
- AI-driven hacks and data breaches are increasing consumer demand.
- The company owns popular brands like Norton and Avast.
Antivirus software provider Gen Digital has issued a positive forecast for fiscal year 2027, projecting revenue and profit that surpass Wall Street's expectations. This forward-looking guidance is built upon the anticipated sustained demand for digital protection services.
This increased consumer spending on cybersecurity is directly linked to heightened concerns surrounding artificial intelligence-driven hacking and data breaches. Gen Digital's CEO highlighted a significant rise in the frequency, complexity, and personalization of cyberattacks, contributing to consumer anxiety about data protection.
Gen Digital, the owner of prominent antivirus brands including Avast, Avira, AVG, and Norton, reported fourth-quarter revenue of $1.28 billion, surpassing analyst estimates of $1.25 billion. The company also announced a robust increase in quarterly earnings per share, which more than tripled compared to the previous year.
Looking ahead, Gen Digital anticipates fiscal 2027 revenue to range between $5.33 billion and $5.43 billion, exceeding the consensus estimate of $5.23 billion. Furthermore, the company expects full-year adjusted earnings per share between $2.85 and $2.95, aligning with or exceeding analyst expectations of $2.86.
