Gen Digital 2025 Q4 Earnings Strong Performance as Net Income Grows 8.4%

Gen Digital (GEN) reported its fiscal 2025 Q4 earnings on May 6th, 2025. The company posted a net income of $142 million, a rise of 8.4% from the previous year's Q4. While the earnings per share increased to $0.23, marking a 9.5% growth, the results met analysts' expectations. The company’s guidance for fiscal year 2026 suggests revenues between $4,700 million and $4,800 million, indicating optimism following the MoneyLion acquisition and continued Cyber Safety segment performance.

Revenue

Gen Digital's revenue for the fourth quarter of fiscal 2025 reached $1.01 billion, representing a 4.8% increase from the previous year's Q4 revenue of $964 million. This growth reflects the company's successful strategic initiatives and expanded market presence.

Earnings/Net Income

Gen Digital's EPS rose to $0.23 in 2025 Q4 from $0.21 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $142 million in 2025 Q4, marking 8.4% growth from $131 million in 2024 Q4. The EPS performance is indicative of solid financial management and positive operational outcomes.

Price Action

The stock price of Gen Digital has edged up 1.22% during the latest trading day, has edged up 0.19% during the most recent full trading week, and has edged down 1.08% month-to-date.

Post-Earnings Price Action Review

Over the past five years, the strategy of purchasing Gen Digital shares post-revenue increase and holding them for 30 days has yielded a modest 13.07% return. This performance has significantly underperformed the benchmark, which posted an 86.27% return. The strategy's Sharpe ratio stood at 0.29, reflecting moderate returns relative to risks taken, alongside a maximum drawdown of -10.77% and volatility of 8.71%. This suggests that while there is potential for gains, investors face notable risks and fluctuations in value, requiring careful consideration of market conditions and strategic positioning.

CEO Commentary

Vincent Pilette, CEO of Gen Digital Inc., remarked on the company's record results and accelerated growth, attributing this success to their mission of meeting the evolving needs of digital consumers. He highlighted the successful acquisition of MoneyLion as a significant step in building a comprehensive platform for trusted solutions, empowering millions to manage and protect their digital and financial lives. Pilette expressed confidence in the company's future, emphasizing the strong demand for Cyber Safety products despite macroeconomic challenges and the potential volatility introduced by MoneyLion's transactional revenue model.

Guidance

For the first quarter of fiscal year 2026, Gen Digital expects revenue to be between $1,180 million and $1,210 million, with EPS projected in the range of $0.59 to $0.61. For the full fiscal year 2026, the company anticipates revenue between $4,700 million and $4,800 million and EPS between $2.46 and $2.54, reflecting optimism in growth trajectories following the integration of MoneyLion and ongoing performance in their Cyber Safety segment.

Additional News

On April 17, 2025, Gen Digital successfully completed the acquisition of MoneyLion for approximately $1 billion, strengthening its position in financial wellness by integrating MoneyLion's financial ecosystem with its Consumer Cyber Safety Platform. Furthermore, MoneyLion stockholders approved the acquisition terms on April 10, 2025, allowing the fintech company to become a subsidiary of Gen Digital. Additionally, Gen Digital's Board of Directors declared a regular quarterly cash dividend of $0.125 per share, payable on June 11, 2025, to shareholders of record as of May 19, 2025.