Gen Digital surges 13% on beat-and-raise quarter, kills GoDaddy acquisition speculation; a rare cybersecurity bright spot as Fortinet-led peers slide (Oct 29)
What happened
Gen Digital reported fiscal second-quarter results late Wednesday with revenue up 12% to $1.37 billion, above the $1.34 billion FactSet consensus, and adjusted earnings of 74 cents a share, topping the 72-cent estimate. Bookings rose 10% to $1.35 billion, the sixth straight quarter of double-digit growth. Management raised its fiscal 2027 outlook, lifting revenue guidance to $5.464–$5.515 billion (from $5.375–$5.475 billion) and adjusted EPS guidance to $2.93–$2.98 (from $2.87–$2.97). On the earnings call, CEO Vincent Pilette ended the GoDaddy takeover talk: 'we are not working on a transformative acquisition today.' Shares jumped 13% Thursday to $27.42, heading for their best single-day gain since May 8.
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Who’s affected
- Gen Digital (GEN) — surged 13% to $27.42, among the best S&P 500 performers Thursday and its best single-day gain since May 8, on the earnings beat, raised FY27 guidance, and removal of the M&A overhang.
- GoDaddy (GDDY) — fell 1.9% Thursday as the would-be-target premium from the takeover speculation unwound.
- Cybersecurity peers (FTNT, ZS, OKTA) — context only: Fortinet down ~22% and Zscaler/Okta down ~4%/3% the same day, making Gen's strength a stock-picking counterpoint in a beaten-down software/security tape.
Sources