Gen Digital CEO Responds to GoDaddy Acquisition Rumors
Article excerpt
Investing.com - Shares of Gen Digital Inc. (NASDAQ:GEN) rose 5% in after-hours trading Monday, after CEO Vincent Pilette responded to recent acquisition speculation and highlighted the company's raised financial outlook for fiscal year 2027. In a LinkedIn post dated 09/28/2026, Pilette indicated that the cybersecurity company had recently raised its revenue growth forecast for fiscal year 2027 to 9%-11%, as well as its non-GAAP earnings per share growth outlook to a mid-to-high double-digit range. He also specified that both the quarter ending 10/02 and the annual outlook are trending towards the high end of forecasts. Pilette also addressed market rumors regarding a potential acquisition of GoDaddy, stating that he could not comment on rumors, but outlined the company's disciplined acquisition strategy. The CEO stated that Gen Digital evaluates potential acquisitions based on five criteria: strategic fit, price, efficiency creation, accretive effect, and whether the transaction offers better value than share buybacks while maintaining a strong balance sheet. Pilette highlighted the company's transformation from low single-digit growth to double-digit growth, citing successful past acquisitions, including Avast and MoneyLion. The acquisition of Avast added hundreds of millions of active users and improved monetization capabilities, while MoneyLion expanded the company's...
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Gen Digital has grown from $2 billion in revenue and less than $1 in EPS six years ago, to over $5 billion in revenue and nearly $3 in EPS currently.
