Gen Digital (NASDAQ: GEN) Crosses $5B Revenue as Growth Accelerates to Double-Digits

Gen Digital Inc. (NASDAQ: GEN) surpassed $5 billion in fiscal 2026 revenue with growth accelerating to double digits, as soaring demand for consumer and small-business cybersecurity solutions propelled the company's stock up 3.22% to $20.19.

By the Numbers

• Revenue growth: 25.8% year-over-year, accelerating from prior year to a double-digit clip
• Net income growth: 20.1% year-over-year, demonstrating improving profitability at scale
• Operating margin: 35.81%, one of the highest in the software security sector
• Gross margin: 78.84%, reflecting the high-margin nature of digital security products
• Forward P/E: 7.04x, a deeply discounted valuation for a 25%+ growth software company

What Drove the Results

Gen Digital's acceleration to 25.8% revenue growth was fueled by heightened corporate and consumer investment in cybersecurity tools following a spate of high-profile breaches. The company's Norton and Avast brand portfolio benefited from both organic demand and customer willingness to pay for enhanced protection, particularly in advanced malware detection and identity theft monitoring.

The 20.1% net income growth—trailing revenue growth only modestly—signals strong operating leverage. With an operating margin of 35.81%, Gen Digital is converting incremental revenue into profit at an exceptional rate, a hallmark of maturing software businesses with sticky, recurring revenue streams. The company's cyber safety brands won 28 industry testing lab honors, nearly double the prior year, validating product competitiveness and supporting customer acquisition and retention.

The $5 billion revenue milestone represents a psychological inflection point, positioning Gen Digital as a scaled cybersecurity powerhouse competing alongside pure-plays like CrowdStrike and Fortinet.

Wall Street View

The 7.04x forward P/E is exceptionally attractive for a software company growing at 25.8% annually. This valuation discount suggests either market skepticism about sustainability or an opportunity for re-rating as the street gains confidence in Gen Digital's ability to maintain double-digit growth while expanding operating margins.

Investor Takeaway

Gen Digital is delivering the holy grail for software investors: accelerating growth coupled with expanding margins. At 25.8% revenue growth and 35.81% operating margins, the company is proving it can scale profitably in a fragmented but growing cybersecurity market. The 7.04x forward P/E is a gift for growth-oriented investors; if management sustains double-digit growth and holds margins above 35%, the stock deserves a substantial multiple re-rating.