Gen Digital to Report Q3 Earnings: What's in Store for the Stock?

Gen Digital Inc. GEN is scheduled to report third-quarter fiscal 2026 results on Feb. 5, after market close.

GEN expects non-GAAP revenues in the band of $1.22-$1.24 billion for the quarter. The Zacks Consensus Estimate for revenues is pegged at $1.23 billion, indicating 24.4% year-over-year growth.

For the fiscal third quarter, Gen Digital expects non-GAAP earnings in the range of 62-64 cents per share. The consensus mark for the same is pegged at 63 cents per share, suggesting a year-over-year rise of 12.5%. The estimate has been revised upward by a cent over the past 60 days.

GEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.9%.

Gen Digital Inc. Price and Consensus

Gen Digital Inc. price-consensus-chart | Gen Digital Inc. Quote

Factors Likely to Influence GEN’s Q3 Results

Gen Digital’s third-quarter fiscal 2026 performance is likely to have benefited from the rise in demand for cybersecurity-related products, driven by a massive increase in global hacking events. Its persistent effort to offer innovative solutions that meet the consumer needs for security, identity and privacy is enabling the company to gain new clients. In the second quarter, Gen Digital’s customer base increased approximately 1 million sequentially, which now comprises more than 77 million customers.

Product momentum in the quarter is likely to have been supported by continued adoption of Norton 360 and the AI-powered Genie Scam Protection feature, along with newer capabilities like Norton Deepfake Detection and Norton Neo, which strengthen GEN’s AI-first positioning. The Zacks Consensus Estimate for Gen Digital’s Cyber Safety Platform segment’s revenues is pegged at $824.91 million. The Zacks Consensus Estimate for the Trust-Based Solutions division is pegged at $401.95 million.

An increase in client bookings, supported by strong retention, international expansion and strategic partnerships, is likely to have aided top-line growth in the fiscal third quarter. Robust demand for identity theft protection solutions, dark web monitoring, social media monitoring, stolen wallet assistant and ID restoration is expected to have been positive for the quarter under review.

However, GEN’s fiscal third-quarter performance is likely to have been impacted by the ongoing macroeconomic and geopolitical challenges. The combination of persistently high interest rates and continuing inflation is expected to have affected consumer spending. Additionally, postponement of IT investments by enterprises due to ongoing macroeconomic uncertainties is expected to have weighed on the company's prospects in the to-be-reported quarter.

Earnings Whispers for GEN Stock

Our proven model does not conclusively predict an earnings beat for Gen Digital this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Gen Digital has an Earnings ESP of -0.40% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

IPG Photonics IPGP has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

IPG Photonics is slated to report fourth-quarter 2025 results on Feb. 12. The Zacks Consensus Estimate for IPGP’s fourth-quarter 2025 earnings is pegged at 25 cents per share, up by a penny over the past 30 days, indicating an increase of 38.9% from the year-ago quarter’s reported figure.

Microchip Technology MCHP has an Earnings ESP of +1.34% and sports a Zacks Rank #1 at present.

It is set to report third-quarter fiscal 2026 results on Feb. 5. The Zacks Consensus Estimate for Microchip’s third-quarter earnings is pegged at 43 cents per share, up by a penny over the past seven days, indicating a rise of 115% from the year-ago quarter’s reported figure.

AMETEK AME has an Earnings ESP of +0.38% and carries a Zacks Rank #2 at present.

AMETEK is scheduled to report fourth-quarter 2025 results on Feb. 3. The Zacks Consensus Estimate for AMETEK’s fourth-quarter 2025 earnings is pegged at $1.94 per share, up by a penny over the past 60 days, indicating a rise of 3.7% from the year-ago quarter’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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