Is the business good?
How good a business is GEN?
Gen Digital earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.1 points above what the capital costs: growth creates value
- Operating margin
- 42%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q4 2026
- Cash conversion
- 1.56×
Cash conversion · 1.88× a year ago · every dollar of reported profit arrived as cash, and more
- R&D as % of revenue
- 8.2%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 35% |
| FY2022 | 36% |
| FY2023 | 36% |
| FY2024 | 29% |
| FY2025 | 41% |
| FY2026 | 42% |
Details›
- Gross margin12 months to Q4 2026
- 78%
- Operating margin12 months to Q4 2026
- 42%
- Net margin12 months to Q4 2026
- 19%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 8.2%
- Revenue, trailing twelve months
- $5.00B
- Free cash flow, trailing twelve months
- $1.52B
- Net income, trailing twelve months
- $973M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #15 of 78 by Smart Score