Gen Digital's Earnings Surprise History and Positive Earnings ESP Indicate a Strong Possibility of Beating Estimates in Its Next Earnings Report.

Gen Digital (GEN) has a strong history of beating earnings estimates, with a 1.77% average beat over the last two quarters. The company is expected to report earnings of $0.59 per share in its next quarterly report, with a positive Earnings ESP of +1.67% and a Zacks Rank #2 (Buy), indicating a potential earnings beat. Historically, stocks with a positive Earnings ESP and a Zacks Rank #3 or higher have a 70% chance of beating consensus estimates.

Gen Digital Inc. (NASDAQ: GEN), a leading provider of cybersecurity solutions, is expected to report strong earnings in its Q2 2025 quarterly report. The company has a history of outperforming earnings estimates, with an average beat of 1.77% over the last two quarters. The latest estimates predict earnings of $0.59 per share, with a positive Earnings ESP of +1.67% and a Zacks Rank #2 (Buy), indicating a potential earnings beat.

Historically, stocks with a positive Earnings ESP and a Zacks Rank #3 or higher have a 70% chance of beating consensus estimates. This suggests that Gen Digital is likely to report earnings that exceed market expectations.

The company's strong performance is driven by its innovative approach to cybersecurity, which includes brands like Norton, Avast, and LifeLock. In April 2025, Gen Digital acquired MoneyLion, a fintech company, to merge cybersecurity with financial wellness. This strategic move positions Gen Digital as a leader in the "digital freedom" space, offering a comprehensive digital safety net for consumers.

Gen Digital's Q3 2025 results showed promising signs of the strategy's early traction. Revenue grew 4% year-over-year (YoY) to $986 million, with non-GAAP operating margins hitting 58.5%, up 3 percentage points. User metrics also improved, with direct customers rising to 40.1 million (up 3% YoY) and retention at 78%. The company's full-year revenue guidance was raised to $3.9 billion–$3.93 billion, with EPS projected at $2.20–$2.22.

However, the company faces challenges in integrating the two tech stacks and managing integration costs. The upcoming September 8 investor event will provide more insights into the progress and potential synergies from the MoneyLion acquisition.

References:

[1] https://www.marketbeat.com/instant-alerts/filing-edgestream-partners-lp-has-575-million-stock-holdings-in-gen-digital-inc-nasdaqgen-2025-07-15/
[2] https://www.ainvest.com/news/gen-digital-bold-play-cybersecurity-financial-wellness-create-digital-era-monopoly-2507/