Varonis Systems (NASDAQ:VRNS) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Varonis Systems (NASDAQ:VRNS) had its price objective increased by equities research analysts at Needham & Company LLC from $40.00 to $50.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s target price suggests a potential upside of 11.93% from the stock’s previous close.

Other research analysts have also recently issued research reports about the company. Cantor Fitzgerald reissued an “overweight” rating and issued a $55.00 target price (up from $35.00) on shares of Varonis Systems in a report on Friday. Wedbush reissued an “outperform” rating and issued a $37.00 target price on shares of Varonis Systems in a research note on Wednesday, June 24th. TD Cowen raised their price target on Varonis Systems from $40.00 to $50.00 and gave the company a “buy” rating in a report on Monday, July 13th. JPMorgan Chase & Co. increased their price objective on shares of Varonis Systems from $39.00 to $55.00 and gave the company an “overweight” rating in a research report on Monday. Finally, UBS Group lifted their target price on shares of Varonis Systems from $37.00 to $58.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. Seventeen analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $46.63.

Varonis Systems Price Performance

Shares of NASDAQ VRNS opened at $44.67 on Wednesday. The company has a 50 day simple moving average of $38.64 and a two-hundred day simple moving average of $30.56. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90. The company has a market capitalization of $5.13 billion, a price-to-earnings ratio of -39.18 and a beta of 0.83. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.69 and a current ratio of 1.69.

Varonis Systems (NASDAQ:VRNS) last issued its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.01 by $0.03. The firm had revenue of $180.02 million for the quarter, compared to analysts’ expectations of $176.83 million. Varonis Systems had a negative return on equity of 20.27% and a negative net margin of 19.75%.The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.03 EPS. Varonis Systems has set its FY 2026 guidance at 0.140-0.150 EPS and its Q3 2026 guidance at 0.020-0.030 EPS. Analysts expect that Varonis Systems will post -1.05 EPS for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

Institutional investors and hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC grew its holdings in Varonis Systems by 76.2% during the second quarter. GAMMA Investing LLC now owns 2,408 shares of the technology company’s stock valued at $101,000 after purchasing an additional 1,041 shares during the period. Harbor Investment Advisory LLC bought a new position in shares of Varonis Systems in the second quarter worth about $71,000. Versant Capital Management Inc raised its stake in shares of Varonis Systems by 27.3% in the second quarter. Versant Capital Management Inc now owns 4,232 shares of the technology company’s stock worth $178,000 after buying an additional 907 shares during the period. Pacer Advisors Inc. lifted its position in shares of Varonis Systems by 26.2% during the 1st quarter. Pacer Advisors Inc. now owns 14,688 shares of the technology company’s stock valued at $315,000 after buying an additional 3,051 shares in the last quarter. Finally, Parallel Advisors LLC lifted its position in shares of Varonis Systems by 1,025.4% during the 1st quarter. Parallel Advisors LLC now owns 3,320 shares of the technology company’s stock valued at $71,000 after buying an additional 3,025 shares in the last quarter. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: JPMorgan raised its price target to $55 from $39 and maintained an Overweight rating, implying further upside from recent trading levels and signaling increased confidence in Varonis’ growth prospects. JPMorgan Chase & Co. Boosts Varonis Systems Price Target to $55.00
• Positive Sentiment: Q2 revenue rose 18.3% year over year to $180.0 million, exceeding the $176.8 million analyst estimate, while adjusted EPS of $0.04 topped the $0.01 consensus. EPS also improved from $0.03 in the year-ago quarter. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: SaaS annual recurring revenue excluding conversions increased 25% year over year, while total SaaS ARR reached $726 million, up 52%. Management also cited growth in new logos and momentum in Atlas, Interceptor and Database Activity Monitoring.
• Positive Sentiment: Management’s Q3 and full-year 2026 forecasts exceeded consensus EPS expectations. Q3 EPS is projected at $0.02-$0.03 versus an anticipated loss of $0.04, while full-year EPS is forecast at $0.14-$0.15 versus consensus for a $0.11 loss. Full-year revenue guidance of $735 million-$739 million was broadly in line with estimates.
• Neutral Sentiment: The earnings call provided additional commentary on SaaS adoption, newer products and the company’s data- and AI-security strategy, but investors will likely look for sustained growth as Varonis continues its transition toward a SaaS model. Varonis Q2 2026 Earnings Call Transcript
• Negative Sentiment: The stock declined following the earnings release despite the beats, indicating that elevated investor expectations may have outweighed the strong quarterly figures and guidance. Varonis also remains unprofitable on a reported basis, with a negative net margin and return on equity.

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.