Varonis Systems (NASDAQ:VRNS) Issues Q1 2026 Earnings Guidance

Varonis Systems (NASDAQ:VRNS) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of -0.060–0.050 for the period, compared to the consensus earnings per share estimate of -0.060. The company issued revenue guidance of $164.0 million-$166.0 million, compared to the consensus revenue estimate of $163.9 million. Varonis Systems also updated its FY 2026 guidance to 0.060-0.100 EPS.

Varonis Systems Trading Down 9.3%

VRNS stock traded down $2.72 during trading on Tuesday, reaching $26.53. The company had a trading volume of 10,359,081 shares, compared to its average volume of 2,723,924. Varonis Systems has a 52 week low of $25.03 and a 52 week high of $63.90. The business has a 50 day moving average of $32.99 and a 200 day moving average of $45.77. 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 company has a market cap of $3.13 billion, a P/E ratio of -26.01 and a beta of 0.58.

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

Analyst Ratings Changes

VRNS has been the topic of several analyst reports. JPMorgan Chase & Co. lowered their price objective 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 boosted their price target on Varonis Systems from $62.00 to $68.00 and gave the stock a “buy” rating in a research note on Friday, October 17th. DA Davidson dropped their price objective on Varonis Systems from $55.00 to $40.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 29th. Stephens started coverage on Varonis Systems in a report on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 price objective for the company. Finally, Morgan Stanley restated an “equal weight” rating and set a $41.00 target price (down previously from $44.00) on shares of Varonis Systems in a research note on Monday, January 26th. Fifteen research 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 has an average rating of “Moderate Buy” and an average target price of $53.50.

Trending Headlines about Varonis Systems

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 Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Caption Management LLC grew its stake in Varonis Systems by 130.4% in the third quarter. Caption Management LLC now owns 5,750 shares of the technology company’s stock worth $330,000 after purchasing an additional 24,650 shares in the last quarter. Merit Financial Group LLC raised its position in Varonis Systems by 14.7% during the 3rd quarter. Merit Financial Group LLC now owns 5,679 shares of the technology company’s stock valued at $326,000 after purchasing an additional 728 shares in the last quarter. Osaic Holdings Inc. lifted its holdings in shares of Varonis Systems by 10.5% in the 2nd quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company’s stock worth $234,000 after buying an additional 440 shares during the period. Benjamin Edwards Inc. grew its position in shares of Varonis Systems by 5.5% during the 2nd quarter. Benjamin Edwards Inc. now owns 6,692 shares of the technology company’s stock worth $340,000 after buying an additional 351 shares in the last quarter. Finally, Main Street Financial Solutions LLC purchased a new position in shares of Varonis Systems during the second quarter valued at $228,000. 95.65% of the stock is owned by hedge funds and other institutional investors.

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.