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Gen Digital forecasts strong Q3 revenue as GenAI adoption drives cybersecurity sales

Oct 30 (Reuters) – Gen Digital (GEN.O), opens new tab on Wednesday forecast third-quarter revenue above Wall Street estimates, signaling robust demand from customers who prioritize spending on its cybersecurity products while adopting data-intensive GenAI tech. Gen Digital, which provides consolidated cybersecurity platforms for one subscription fee, has benefited from businesses doubling down on data and enterprise protection as they look to integrate booming generative AI technology.
AI applications employ hoards of data, which could include companies’ internal information in the case of enterprise AI, necessitating cybersecurity guardrails. The company expects third-quarter revenue between $980 million to $990 million, compared with analysts’ average estimates of $978.3 million, according to data compiled by LSEG. The company’s shares rose about 2% in extended trading. Gen Digital forecast adjusted profit between 54 cents per share to 56 cents per share for the third quarter, in line with estimates of 55 cents.
A surge in digital scams, online threats and high-profile cybersecurity incidents has triggered robust demand for companies such as Gen Digital. Revenue for the second-quarter ended Sept. 27 rose 3% to $974 million, beating estimates of $969.9 million. Adjusted profit per share came in at 54 cents, in line with estimates. The company also raised the lower end of its 2024 revenue forecast. It now expects between $3.91 billion to $3.93 billion, compared to the prior range of $3.89 billion to $3.93 billion.
Source: Reuters