Gen Digital forecasts annual results above estimates on strong cybersecurity demand

By Zaheer Kachwala

May ‌7 (Reuters) - Antivirus ​software ​provider Gen Digital forecast fiscal 2027 revenue and profit above Wall Street expectations on ‌Thursday, betting on strong demand as consumers ⁠spend extra to protect their online activity.

The threat of artificial ‌intelligence-driven hacks and data ‌breaches have spurred consumers to take a more serious approach to protecting their digital infrastructure, benefiting ​companies such as Gen, which also offers services like identity theft monitoring and privacy tools.

"We definitely ⁠have seen an increase in hacking, an increase in the complexity ​of the hacking, and real speed, real time, with real personalization," CEO Vincent Pilette ​told Reuters.

Pilette said consumer angst ‌around data protection in the AI age has also driven growth for the ⁠company.

Gen Digital owns well-known antivirus brands Avast, Avira, AVG and Norton.

It forecast annual revenue between $5.33 billion and $5.43 billion, ⁠compared with estimates of $5.23 billion, according to data compiled by ​LSEG.

The company expects full-year adjusted earnings between $2.85 and $2.95 per share, while analysts expect $2.86 per share.

It forecast first-quarter revenue between $1.3 billion ‌and $1.33 billion, compared with estimates of $1.27 billion.

Revenue for the fourth quarter came in ‌at $1.28 billion, beating estimates of $1.25 billion.

Gen reported quarterly ⁠earnings per share of ‌84 cents, more ​than tripling from a year ago.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Sahal ‌Muhammed)

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