Gen Digital Stock Jumps Nearly 7% as Norton Owner Rebounds From GoDaddy Takeover Selloff on Upbeat Outlook

NEW YORK — Shares of Gen Digital Inc. climbed nearly 7% on Wednesday, extending a recovery for the maker of Norton antivirus software after a steep selloff triggered by reports that it had approached web-services company GoDaddy about a takeover.

Gen Digital stock rose $1.40, or 6.69%, to $22.24 as of 11:46 a.m. Eastern time on the Nasdaq, making it one of the stronger performers among large-cap technology stocks in morning trading.

The company did not release new information Wednesday, and no single catalyst was confirmed for the move. The gain follows a letter from Chief Executive Vincent Pilette earlier this week that sought to reassure investors about the company's acquisition discipline and said its business was tracking toward the high end of its financial forecasts.

Takeover report sparked a sell-off

Gen Digital shares tumbled last week after the Financial Times reported on Sept. 24 that the company had made a preliminary takeover approach to GoDaddy. The talks were described as early stage, with no guarantee of a deal, and financial terms were not disclosed.

GoDaddy shares surged as much as 11% on the report, while Gen Digital fell about 12% to $23.07, the biggest decline among large-cap stocks that day.

The reaction reflected investor concerns about the size and financing of a potential deal. Before the report, GoDaddy was valued at about $12.2 billion, compared with roughly $15.7 billion for Gen Digital, meaning any transaction would be large relative to the buyer.

Gen Digital already carries about $8 billion in net debt and had $564 million in cash and just over $2 billion in total liquidity, according to analysts at TIKR. GoDaddy has about $3.8 billion of its own debt. StoneX analysts said a deal of that size would likely require a meaningful stock component rather than cash alone, raising the prospect of shareholder dilution.

Investors also questioned the strategic fit between a consumer cybersecurity company and a business focused on domains, website hosting and small-business services.

The stock kept sliding after the initial report. It closed at $20.85 on Monday, down more than 34% from its 52-week high of $31.65.

CEO addresses acquisition questions

On Monday, Gen Digital filed a letter from Pilette with securities regulators that addressed the speculation directly.

"I can't comment on rumors, but I can explain how we think about acquisitions," Pilette wrote.

He said the company weighs any potential deal against five tests: whether it fits the company's strategy, whether the price is right, whether it can create real efficiencies, whether it adds to earnings, and whether it is a better use of capital than buying back Gen's own stock, all while maintaining a strong balance sheet.

Pilette pointed to the company's past acquisitions of Avast and MoneyLion as examples of that approach. He said MoneyLion, the fintech lender Gen acquired last year in a deal valued at about $1 billion, is on track to deliver more than a 30% return on invested capital in its second year.

He also offered an update on current trading, saying both the quarter ending Oct. 2 and the full-year outlook "are both tracking to the higher end of our guidance."

Gen Digital shares rose about 5% in after-hours trading Monday following the letter.

Raised outlook supports shares

The company recently raised its fiscal 2027 outlook, now forecasting revenue growth of 9% to 11% and non-GAAP earnings per share growth in the mid-to-high teens.

In its fiscal first quarter, Gen Digital reported revenue of $1.26 billion, up 30% from a year earlier, helped by the addition of MoneyLion. Pilette said the company has moved from low single-digit growth to double-digit growth.

The company pays a quarterly dividend of 13 cents per share.

Analysts divided

Wall Street has taken a mixed view of the potential GoDaddy deal. RBC Capital lowered its price target on Gen Digital to $26 from $30 while maintaining a sector perform rating, citing the potential acquisition.

Jefferies kept a hold rating but said the company deserves the "benefit of the doubt" on mergers and acquisitions, noting that a GoDaddy deal would be Gen's largest since the Avast merger. Another analyst maintained a $36 price target, arguing the potential acquisition offered an attractive risk-reward profile.

Based on MarketBeat data, the stock holds a consensus hold rating from eight analysts, with an average price target of $30.80, well above current trading levels.

Why GoDaddy?

Supporters of a potential deal point to GoDaddy's large customer base. The company serves more than 20 million small businesses, creators and entrepreneurs and manages about 81 million web domains, roughly one-fifth of all registered domains worldwide.

That could give Gen Digital a major new channel to sell its security, privacy and identity protection products. The two companies already have ties: both are based in Tempe, Arizona, and GoDaddy began selling Norton Small Business on its platform in September 2025.

GoDaddy, however, has faced its own challenges. Its shares have fallen sharply over the past year as it shifts toward its artificial intelligence platform, Airo, which is replacing some older, higher-priced products.

About Gen Digital

Gen Digital, formerly NortonLifeLock, adopted its current name after merging with Czech antivirus company Avast in 2022. Its brands include Norton, Avast, AVG, Avira, LifeLock, CCleaner, ReputationDefender and MoneyLion, serving nearly 500 million users in more than 150 countries.

The company has been expanding into protections for the age of artificial intelligence, including tools designed to secure AI agents that act on users' behalf.

What's next

Investors will watch for any official statements from Gen Digital or GoDaddy on the status of talks. GoDaddy is scheduled to hold an investor event in December, which could provide more clarity.

Gen Digital's fiscal second quarter ends Oct. 2, and the company is expected to report results in the coming weeks. Those numbers will offer the first test of Pilette's assurance that the business is tracking toward the top of its guidance.