By Zaheer Kachwala
May 7 (Reuters) – Antivirus software provider Gen Digital forecast fiscal 2027 revenue and profit above Wall Street expectations on Thursday, betting on strong demand as consumers spend extra to protect their online activity.
The threat of artificial intelligence-driven hacks and data breaches have spurred consumers to take a more serious approach to protecting their digital infrastructure, benefiting companies such as Gen, which also offers services like identity theft monitoring and privacy tools.
“We definitely have seen an increase in hacking, an increase in the complexity of the hacking, and real speed, real time, with real personalization,” CEO Vincent Pilette told Reuters.
Pilette said consumer angst around data protection in the AI age has also driven growth for the company.
Gen Digital owns well-known antivirus brands Avast, Avira, AVG and Norton.
It forecast annual revenue between $5.33 billion and $5.43 billion, compared with estimates of $5.23 billion, according to data compiled by LSEG.
The company expects full-year adjusted earnings between $2.85 and $2.95 per share, while analysts expect $2.86 per share.
It forecast first-quarter revenue between $1.3 billion and $1.33 billion, compared with estimates of $1.27 billion.
Revenue for the fourth quarter came in at $1.28 billion, beating estimates of $1.25 billion.
Gen reported quarterly earnings per share of 84 cents, more than tripling from a year ago.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Sahal Muhammed)
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