Gen Digital raises annual forecast on strong cybersecurity demand

Aug. 6 (Reuters) - Gen Digital raised its full-year revenue and profit forecast on Thursday, signaling robust demand for its family of cybersecurity products in the face of growing AI-powered online threats.

The digital security company has been capitalizing on a heightened threat environment, where generative AI tools are making it easier for criminals to create sophisticated phishing emails, scams and identity theft attacks.

• Consumer anxiety surrounding AI-enabled fraud has become the primary catalyst for new customer acquisitions, CEO Vincent Pilette told Reuters.
• Gen is seeing membership grow for its flagship Norton 360, which is its comprehensive digital safety and anti-malware suite of products, Pilette said.
• Looking ahead to fiscal 2027, Pilette pointed to monetization of financial wellness adoption as the key marker of success.
• Gen expects "$100 million incremental revenue coming from financial wellness adoption" over the next 18 months.
• The company expects fiscal 2027 revenue in the range of $5.38 billion to $5.48 billion, compared with its prior forecast of $5.33 billion to $5.43 billion.
• It sees adjusted earnings per share between $2.87 and $2.97, compared with a prior range of $2.85 to $2.95.
• Gen reported revenue of $1.34 billion for the quarter ended July 3, compared with analysts' average estimate of $1.31 billion, according to data compiled by LSEG.
• On an adjusted basis, Gen Digital earned 71 cents per share, ahead of the estimate of 69 cents.