Gen Digital Surpasses Q3 Expectations Amid Rising Demand for AI-Driven Cybersecurity Solutions
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Gen Digital Beats Third-Quarter Revenue Estimates on Strong Demand for Cybersecurity Tools
(Reuters) - Gen Digital topped Wall Street estimates for third-quarter revenue and profit on Thursday, driven by strong demand for its cybersecurity tools. A surge in digital scams and high-profile hacks is fueling demand for Gen Digital's cybersecurity solutions, as businesses adopt artificial intelligence (AI) technology and increasingly deploy robust security measures to protect their systems against evolving threats. With its advancement, AI is enabling more sophisticated and complex hacking techniques, escalating risk. The growing threat is driving the need for the development of advanced cybersecurity solutions to counter these emerging threats. Gen Digital's revenue for the third quarter ended Dec. 27 rose 4% to $986 million, beating estimates of $985.1 million, according to data compiled by LSEG. Its adjusted profit per share came in at 56 cents, above analysts' estimates of 55 cents. In December, Gen Digital agreed to buy fintech firm MoneyLion in an all-cash deal valued at about $1 billion, to expand its consumer financial offerings. The company, which offers cybersecurity solutions including Norton, Avast and Avira, forecast an adjusted profit per share between 57 cents and 59 cents for the fourth quarter, compared to estimates of 58 cents. The company expects fourth-quarter revenue to range between $990 million and $1.01 billion, the midpoint of which came in line with analysts' estimates. (Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)
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Gen Digital beats third-quarter revenue estimates on strong demand for cybersecurity tools
(Reuters) - Gen Digital topped Wall Street estimates for third-quarter revenue and profit on Thursday, driven by strong demand for its cybersecurity tools. A surge in digital scams and high-profile hacks is fueling demand for Gen Digital's cybersecurity solutions, as businesses adopt artificial intelligence (AI) technology and increasingly deploy robust security measures to protect their systems against evolving threats. With its advancement, AI is enabling more sophisticated and complex hacking techniques, escalating risk. The growing threat is driving the need for the development of advanced cybersecurity solutions to counter these emerging threats. Gen Digital's revenue for the third quarter ended Dec. 27 rose 4% to $986 million, beating estimates of $985.1 million, according to data compiled by LSEG. Its adjusted profit per share came in at 56 cents, above analysts' estimates of 55 cents. In December, Gen Digital agreed to buy fintech firm MoneyLion in an all-cash deal valued at about $1 billion, to expand its consumer financial offerings. The company, which offers cybersecurity solutions including Norton, Avast and Avira, forecast an adjusted profit per share between 57 cents and 59 cents for the fourth quarter, compared to estimates of 58 cents. The company expects fourth-quarter revenue to range between $990 million and $1.01 billion, the midpoint of which came in line with analysts' estimates. (Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)
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Gen Digital reports strong Q3 results, beating revenue and profit estimates. The company's success is attributed to increased demand for cybersecurity tools in response to AI-enabled threats and digital scams.
Gen Digital Exceeds Q3 Expectations
Gen Digital, a leading cybersecurity company, has reported impressive third-quarter results, surpassing Wall Street estimates for both revenue and profit. The company's success is largely attributed to the increasing demand for robust cybersecurity solutions in an era of rapidly evolving digital threats 12.
Strong Financial Performance
For the quarter ending December 27, Gen Digital reported a 4% increase in revenue, reaching $986 million. This figure exceeded analysts' expectations of $985.1 million, as compiled by LSEG. The company's adjusted profit per share stood at 56 cents, also surpassing the estimated 55 cents 12.
AI-Driven Cybersecurity Landscape
The surge in Gen Digital's performance comes amid a growing landscape of digital scams and high-profile hacks. As businesses increasingly adopt artificial intelligence (AI) technology, they are simultaneously ramping up their security measures to protect against evolving threats 12.
Paradoxically, while AI enhances cybersecurity capabilities, it also enables more sophisticated hacking techniques. This dual nature of AI in the cybersecurity realm is driving the development of advanced security solutions to counter emerging threats 12.
Product Portfolio and Future Outlook
Gen Digital offers a range of cybersecurity solutions, including well-known brands such as Norton, Avast, and Avira. Looking ahead to the fourth quarter, the company has forecast an adjusted profit per share between 57 and 59 cents, aligning with analysts' estimates of 58 cents 12.
Revenue projections for the upcoming quarter are set between $990 million and $1.01 billion, with the midpoint of this range meeting analysts' expectations 12.
Strategic Expansion
In a significant move to broaden its consumer financial offerings, Gen Digital announced in December its agreement to acquire fintech firm MoneyLion. This all-cash deal, valued at approximately $1 billion, signals the company's intent to diversify its services beyond traditional cybersecurity 12.
Industry Implications
The strong performance of Gen Digital underscores the critical importance of cybersecurity in today's digital landscape. As AI continues to reshape both offensive and defensive capabilities in the cyber realm, companies that can effectively leverage these technologies are likely to see increased demand for their services.
This trend suggests a growing market for AI-enhanced cybersecurity solutions, as businesses and individuals seek to protect themselves against increasingly sophisticated digital threats. The success of companies like Gen Digital may encourage further innovation and investment in this crucial sector of the technology industry.
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