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

Varonis Systems (NASDAQ:VRNS) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 0.060-0.100 for the period, compared to the consensus EPS 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.

Analyst Ratings Changes

VRNS has been the subject of several research analyst reports. Stephens started coverage on shares of Varonis Systems in a research report on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 price target for the company. Needham & Company LLC decreased their target price on Varonis Systems from $55.00 to $30.00 and set a “buy” rating for the company in a research report on Wednesday. B. Riley lowered their price target on Varonis Systems from $58.00 to $45.00 and set a “buy” rating on the stock in a report on Wednesday. Susquehanna dropped their price target on Varonis Systems from $65.00 to $50.00 and set a “positive” rating on the stock in a research report on Wednesday, October 29th. Finally, Royal Bank Of Canada decreased their price objective on Varonis Systems from $60.00 to $41.00 and set an “outperform” rating for the company in a research report on Monday, January 5th. Fifteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Varonis Systems currently has a consensus rating of “Moderate Buy” and an average price target of $48.20.

Varonis Systems Stock Down 12.4%

Shares of NASDAQ VRNS traded down $3.29 during mid-day trading on Wednesday, reaching $23.24. The company had a trading volume of 2,817,579 shares, compared to its average volume of 2,620,894. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.81 and a current ratio of 1.81. Varonis Systems has a twelve month low of $20.06 and a twelve month high of $63.90. The stock’s 50 day moving average is $32.99 and its 200-day moving average is $45.77. The stock has a market capitalization of $2.74 billion, a PE ratio of -22.85 and a beta of 0.58.

Varonis Systems (NASDAQ:VRNS) last issued its 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. Varonis Systems had a negative return on equity of 21.91% and a negative net margin of 18.82%.The firm had revenue of $173.37 million for the quarter, compared to the consensus estimate of $168.66 million. During the same quarter in the previous year, the company posted $0.18 earnings per share. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. 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. As a group, equities analysts anticipate that Varonis Systems will post -0.83 earnings per share for the current fiscal year.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.08 vs. $0.03 expected and revenue $173.4M vs. $168.7M expected; ARR and SaaS metrics improved and cash flow rose year‑over‑year. Read More.
• Positive Sentiment: FY‑2026 guidance showed a pivot toward profitability (EPS $0.06–$0.10 vs. street at −$0.06) and raised revenue outlook ($722–$730M vs. $718M consensus) — this suggests management expects acceleration from the SaaS transition. Read More.
• Positive Sentiment: Acquisition of AllTrue.ai (AI TRiSM) to extend Varonis into AI security — reported valuation ~$150M, which could help monetize AI governance demand and complement data/access controls. Read More.
• Neutral Sentiment: Analysts trimmed price targets but kept buy ratings — Needham cut its target from $55 to $30; Truist cut from $42 to $34. These cuts reduce upside expectations even though the ratings remain constructive. Read More.
• Negative Sentiment: Multiple law firms have filed or solicited lead‑plaintiff cases alleging disclosure issues tied to the SaaS transition; an active litigation pipeline raises legal risk and potential distraction/costs. Read More.
• Negative Sentiment: Analyst/coverage and deep‑dive pieces highlight margin pressure from the SaaS transition and execution risk — investors remain sensitive to growth vs. margin tradeoffs as Varonis shifts revenue mix. Read More. Read More.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of VRNS. EverSource Wealth Advisors LLC boosted its holdings in Varonis Systems by 344.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company’s stock worth $62,000 after purchasing an additional 940 shares in the last quarter. Harvest Fund Management Co. Ltd acquired a new stake in shares of Varonis Systems in the third quarter worth about $68,000. Advisory Services Network LLC acquired a new stake in shares of Varonis Systems in the third quarter worth about $75,000. Caxton Associates LLP bought a new stake in shares of Varonis Systems during the 1st quarter worth about $200,000. Finally, Twin Tree Management LP acquired a new position in shares of Varonis Systems during the 3rd quarter valued at about $211,000. Institutional investors own 95.65% of the company’s stock.

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.