Varonis Systems (NASDAQ:VRNS) Issues FY 2026 Earnings Guidance

Varonis Systems (NASDAQ:VRNS) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.060-0.100 for the period, compared to the consensus estimate of -0.060. The company issued revenue guidance of $722.0 million-$730.0 million, compared to the consensus revenue estimate of $718.1 million. Varonis Systems also updated its Q1 2026 guidance to -0.060–0.050 EPS.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on VRNS. DA Davidson cut their price target on shares of Varonis Systems from $55.00 to $40.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 29th. JPMorgan Chase & Co. dropped their target price on Varonis Systems from $62.00 to $50.00 and set an “overweight” rating on the stock in a research report on Monday, January 26th. TD Cowen increased their price objective on shares of Varonis Systems from $62.00 to $68.00 and gave the stock a “buy” rating in a research note on Friday, October 17th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $41.00 price target (down from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Finally, Robert W. Baird cut Varonis Systems from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, October 29th. Fifteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Varonis Systems currently has an average rating of “Moderate Buy” and an average price target of $53.50.

Varonis Systems Price Performance

Shares of NASDAQ VRNS traded down $2.72 during midday trading on Tuesday, hitting $26.53. The stock had a trading volume of 10,359,081 shares, compared to its average volume of 2,723,924. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.75. The stock has a 50 day simple moving average of $32.99 and a 200-day simple moving average of $45.77. The company has a market capitalization of $3.13 billion, a PE ratio of -26.01 and a beta of 0.58. Varonis Systems has a 1 year low of $25.03 and a 1 year high of $63.90.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.05. The firm had revenue of $173.37 million for the quarter, compared to analyst estimates of $168.66 million. Varonis Systems had a negative net margin of 18.82% and a negative return on equity of 21.91%. Varonis Systems’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.18 earnings per share. Varonis Systems has set its FY 2026 guidance at 0.060-0.100 EPS and its Q1 2026 guidance at -0.060–0.050 EPS. On average, sell-side analysts expect that Varonis Systems will post -0.83 EPS for the current fiscal year.

Varonis Systems News Roundup

Here are the key news stories impacting Varonis Systems this week:

• Positive Sentiment: Varonis beat expectations on both EPS and revenue for the quarter (EPS $0.08 vs. $0.03 expected; revenue $173.4M vs. $168.7M consensus). The report also highlighted ARR growth and improved operating cash flow — results investors typically view as signs of operational strength. Quarterly Press Release
• Positive Sentiment: Management reported healthy SaaS ARR expansion (SaaS ARR ex‑conversions +32% YoY; SaaS ~86% of total ARR) and year‑to‑date free cash flow/cash from ops improved meaningfully — metrics supportive of a cloud transition thesis. Q4 & FY Release (company highlights)
• Positive Sentiment: Varonis announced the acquisition of AllTrue.ai to add AI TRiSM capabilities — a strategic bolt‑on to secure and monitor AI systems that complements Varonis’ data, identity and access capabilities and could help expand product addressable market. Acquisition Announcement
• Neutral Sentiment: Analyst / media commentary noted the company delivered better‑than‑expected results but questioned near‑term conversion cadence from on‑prem to SaaS customers — commentary may temper momentum but is informational rather than new company guidance. Media Coverage
• Negative Sentiment: Numerous law firms have filed or announced shareholder litigation and lead‑plaintiff deadlines alleging misstatements around the company’s SaaS transition and projections — this legal overhang is likely the main driver of the stock’s intraday weakness despite the beat. Representative notices from several firms and investor alerts are circulating. Hagens Berman Alert Bragar Eagel & Squire Notice

Institutional Trading of Varonis Systems

Several institutional investors have recently made changes to their positions in the company. American Capital Management Inc. lifted its position in Varonis Systems by 16.3% in the third quarter. American Capital Management Inc. now owns 1,371,806 shares of the technology company’s stock valued at $78,838,000 after buying an additional 191,929 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Varonis Systems by 1.0% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,224,986 shares of the technology company’s stock valued at $70,418,000 after acquiring an additional 12,581 shares during the period. AQR Capital Management LLC raised its stake in shares of Varonis Systems by 35.3% in the 3rd quarter. AQR Capital Management LLC now owns 763,148 shares of the technology company’s stock valued at $43,858,000 after acquiring an additional 199,310 shares during the period. Legal & General Group Plc lifted its holdings in shares of Varonis Systems by 6.6% in the 3rd quarter. Legal & General Group Plc now owns 755,799 shares of the technology company’s stock worth $43,436,000 after acquiring an additional 46,998 shares during the last quarter. Finally, Bamco Inc. NY boosted its position in shares of Varonis Systems by 2.6% during the 2nd quarter. Bamco Inc. NY now owns 623,886 shares of the technology company’s stock worth $31,662,000 after purchasing an additional 15,807 shares during the period. Hedge funds and other institutional investors own 95.65% of the company’s stock.

Varonis Systems Company Profile

Varonis Systems is a cybersecurity firm specializing in the protection and management of unstructured data. The company’s flagship Data Security Platform provides advanced analytics for monitoring file systems, email servers, collaboration platforms and cloud storage. By continuously mapping and analyzing data permissions and user behavior, Varonis enables organizations to detect insider threats, verify compliance and remediate exposed data in real time.

Founded in 2005 and headquartered in New York City, Varonis serves a diverse global customer base across financial services, healthcare, media, manufacturing and government.