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(Reuters) - Gen Digital topped Wall Street estimates for third-quarter revenue and profit on Thursday, driven by strong demand for its cybersecurity tools.
A surge in digital scams and high-profile hacks is fueling demand for Gen Digital's cybersecurity solutions, as businesses adopt artificial intelligence (AI) technology and increasingly deploy robust security measures to protect their systems against evolving threats.
With its advancement, AI is enabling more sophisticated and complex hacking techniques, escalating risk. The growing threat is driving the need for the development of advanced cybersecurity solutions to counter these emerging threats.
Gen Digital's revenue for the third quarter ended Dec. 27 rose 4% to $986 million, beating estimates of $985.1 million, according to data compiled by LSEG.
Its adjusted profit per share came in at 56 cents, above analysts' estimates of 55 cents.
In December, Gen Digital agreed to buy fintech firm MoneyLion in an all-cash deal valued at about $1 billion, to expand its consumer financial offerings.
The company, which offers cybersecurity solutions including Norton, Avast and Avira, forecast an adjusted profit per share between 57 cents and 59 cents for the fourth quarter, compared to estimates of 58 cents.
The company expects fourth-quarter revenue to range between $990 million and $1.01 billion, the midpoint of which came in line with analysts' estimates.
(Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)