Needham & Company LLC Cuts Varonis Systems (NASDAQ:VRNS) Price Target to $30.00

Varonis Systems (NASDAQ:VRNS) had its target price dropped by equities researchers at Needham & Company LLC from $55.00 to $30.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s price objective points to a potential upside of 13.08% from the stock’s current price.

A number of other equities analysts have also issued reports on VRNS. Susquehanna cut their target price on shares of Varonis Systems from $65.00 to $50.00 and set a “positive” rating for the company in a research note on Wednesday, October 29th. Stephens began coverage on shares of Varonis Systems in a research report on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 price objective for the company. Citigroup decreased their target price on Varonis Systems from $58.00 to $40.00 and set a “neutral” rating on the stock in a research report on Monday, November 3rd. JPMorgan Chase & Co. cut their price target on Varonis Systems from $62.00 to $50.00 and set an “overweight” rating for the company in a report on Monday, January 26th. Finally, Robert W. Baird lowered Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 29th. Fifteen research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $51.45.

Varonis Systems Trading Down 9.3%

Shares of NASDAQ:VRNS opened at $26.53 on Wednesday. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.75. The stock 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. The firm has a fifty day moving average price of $32.99 and a 200 day moving average price of $45.77.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.05. The company 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%. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the firm 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. Analysts expect that Varonis Systems will post -0.83 EPS for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VRNS. Bessemer Group Inc. grew its stake in Varonis Systems by 179.1% during the second quarter. Bessemer Group Inc. now owns 494 shares of the technology company’s stock worth $25,000 after buying an additional 317 shares during the last quarter. Allworth Financial LP boosted its holdings in shares of Varonis Systems by 201.3% in the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company’s stock worth $40,000 after acquiring an additional 463 shares in the last quarter. Neo Ivy Capital Management acquired a new position in shares of Varonis Systems in the 3rd quarter worth approximately $42,000. First Horizon Corp bought a new stake in Varonis Systems during the 3rd quarter worth approximately $45,000. Finally, Westside Investment Management Inc. increased its holdings in Varonis Systems by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 844 shares of the technology company’s stock valued at $49,000 after purchasing an additional 422 shares in the last quarter. 95.65% of the stock is currently owned by institutional investors and hedge funds.

Key Varonis Systems News

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

• Positive Sentiment: Q4 beat on revenue and EPS; ARR and cash flow improved — Varonis reported $173.4M revenue (+9.4% YoY) and $0.08 EPS, topping consensus, with annual recurring revenue and SaaS ARR growth and stronger operating cash flow and free cash flow year‑to‑date. Varonis Announces Q4 and FY2025 Results
• Positive Sentiment: FY‑2026 guidance raised — management set FY‑2026 EPS guidance of $0.06–$0.10 and revenue $722M–$730M, above consensus revenue and materially better on EPS compared with street expectations for a loss, signaling expected margin recovery next year.
• Positive Sentiment: Strategic AI acquisition — Varonis is acquiring AllTrue.ai to add AI TRiSM capabilities, enhancing its ability to secure and monitor AI systems and strengthen its data‑security positioning as customers adopt AI. Varonis to Acquire AllTrue.ai
• Neutral Sentiment: Q1 2026 guidance still negative — management guided Q1 EPS to -$0.060 to -$0.050 and revenue $164M–$166M (about in line with consensus), indicating a near‑term earnings drag as the business completes the SaaS transition.
• Neutral Sentiment: Full earnings disclosure and call available — the transcript and slide deck provide detail on customer conversion cadence and margin plans; investors should review management commentary for cadence on SaaS conversions and subscription mix. Earnings Call Transcript
• Negative Sentiment: Multiple securities‑class action notices — several law firms and investor alerts announced potential suits alleging misleading statements about the SaaS transition (lead plaintiff deadline March 9), increasing legal risk and investor uncertainty. Shareholder Lawsuit Notice (PR Newswire)
• Negative Sentiment: Market reaction muted/negative despite beat — coverage notes the stock dipped after results, reflecting investor focus on legal overhang and the near‑term negative EPS guide even as FY outlook improved. Varonis Dipped Despite Strong Earnings

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.