Truist Financial Issues Pessimistic Forecast for Varonis Systems (NASDAQ:VRNS) Stock Price

Varonis Systems (NASDAQ:VRNS) had its target price cut by analysts at Truist Financial from $42.00 to $34.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the technology company’s stock. Truist Financial’s target price indicates a potential upside of 28.16% from the company’s current price.

A number of other equities research analysts have also issued reports on VRNS. Citigroup dropped their price objective on shares of Varonis Systems from $58.00 to $40.00 and set a “neutral” rating for the company in a report on Monday, November 3rd. Royal Bank Of Canada dropped their price target on shares of Varonis Systems from $60.00 to $41.00 and set an “outperform” rating for the company in a research note on Monday, January 5th. Piper Sandler raised shares of Varonis Systems from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $45.00 to $47.00 in a research report on Monday, January 5th. Barclays decreased their price objective on Varonis Systems from $50.00 to $45.00 and set an “overweight” rating on the stock in a report on Monday, January 5th. Finally, DA Davidson cut their target price on Varonis Systems from $55.00 to $40.00 and set a “neutral” rating for the company in a research note on Wednesday, October 29th. Fifteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $51.45.

Varonis Systems Trading Down 9.3%

Shares of Varonis Systems stock opened at $26.53 on Wednesday. The company has a debt-to-equity ratio of 0.75, a current ratio of 1.81 and a quick ratio of 1.81. The stock’s 50 day simple moving average is $32.99 and its 200-day simple moving average is $45.77. The stock has a market cap of $3.13 billion, a P/E 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 announced its quarterly earnings data on Tuesday, February 3rd. The technology company reported $0.08 EPS 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 the consensus estimate of $168.66 million. Varonis Systems had a negative return on equity of 21.91% and a negative net margin of 18.82%.The firm’s revenue was up 9.4% compared to the same quarter last year. During the same quarter last 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. Analysts predict that Varonis Systems will post -0.83 EPS for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

Several hedge funds have recently bought and sold shares of VRNS. Norges Bank purchased a new stake in Varonis Systems during the second quarter worth about $65,161,000. Pictet Asset Management Holding SA grew its holdings in shares of Varonis Systems by 99.1% in the fourth quarter. Pictet Asset Management Holding SA now owns 2,178,380 shares of the technology company’s stock valued at $71,480,000 after purchasing an additional 1,084,267 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd increased its stake in Varonis Systems by 166.7% during the 3rd quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,360,000 shares of the technology company’s stock worth $78,159,000 after buying an additional 850,000 shares during the period. Vanguard Group Inc. lifted its holdings in Varonis Systems by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company’s stock worth $440,119,000 after buying an additional 822,925 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its position in Varonis Systems by 319.8% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 971,544 shares of the technology company’s stock valued at $48,606,000 after buying an additional 740,114 shares during the period. Institutional investors and hedge funds own 95.65% of the company’s stock.

Trending Headlines about Varonis Systems

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

About Varonis Systems

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.