Varonis Systems (NASDAQ:VRNS) Releases Q3 2026 Earnings Guidance

Varonis Systems (NASDAQ:VRNS) updated its third quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 0.020-0.030 for the period, compared to the consensus estimate of -0.040. The company issued revenue guidance of $185.0 million-$188.0 million, compared to the consensus revenue estimate of $186.2 million. Varonis Systems also updated its FY 2026 guidance to 0.140-0.150 EPS.

Varonis Systems Price Performance

Shares of Varonis Systems stock traded down $2.00 on Tuesday, reaching $44.67. 4,481,597 shares of the stock were exchanged, compared to its average volume of 2,688,265. The firm’s 50 day moving average is $38.34 and its 200-day moving average is $30.50. The firm has a market cap of $5.13 billion, a PE 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 has a one year low of $19.70 and a one year high of $63.90.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, beating the consensus estimate of ($0.05) by $0.11. Varonis Systems had a negative net margin of 19.75% and a negative return on equity of 20.27%. The business had revenue of $173.13 million during the quarter, compared to the consensus estimate of $165.52 million. Varonis Systems’s quarterly revenue was up 26.9% on a year-over-year basis. As a group, analysts anticipate that Varonis Systems will post -1.05 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Truist Financial lifted their price target on Varonis Systems from $34.00 to $52.00 and gave the company a “buy” rating in a research note on Tuesday, July 21st. B. Riley Financial upped their price objective on Varonis Systems from $45.00 to $55.00 and gave the stock a “buy” rating in a research report on Friday. Weiss Ratings raised Varonis Systems from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, June 30th. JPMorgan Chase & Co. lifted their target price on Varonis Systems from $39.00 to $55.00 and gave the company an “overweight” rating in a research report on Monday. Finally, TD Cowen boosted their target price on Varonis Systems from $40.00 to $50.00 and gave the stock a “buy” rating in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $46.26.

Key Headlines Impacting Varonis Systems

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Varonis reported adjusted EPS of $0.04, above the $0.01 consensus estimate, while revenue of $180.02 million surpassed expectations of $176.83 million. Varonis Q2 2026 Press Release
• Positive Sentiment: Profitability guidance was raised well above analyst expectations. Third-quarter EPS is now expected at $0.02-$0.03, compared with the consensus estimate of a $0.04 loss. Full-year EPS guidance of $0.14-$0.15 also significantly exceeds the consensus estimate of a $0.11 loss.
• Positive Sentiment: SaaS momentum remained strong. Total SaaS annual recurring revenue reached $726 million, up 52% year over year, while SaaS ARR excluding conversions increased 25%. Management also cited growing contributions from Atlas, Interceptor and Database Activity Monitoring. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: JPMorgan raised its price target. JPMorgan lifted its target from $39 to $55 and maintained an “overweight” rating, supporting the bullish view on Varonis’ growth and SaaS transition. JPMorgan Raises Varonis Price Target
• Neutral Sentiment: Revenue guidance was essentially in line. Third-quarter revenue guidance of $185 million-$188 million brackets the $186.2 million consensus, while full-year guidance of $735 million-$739 million is only modestly above the $734.8 million estimate.
• Negative Sentiment: The market reaction suggests high expectations may already be reflected in the valuation. Although results and EPS guidance were strong, investors may have been disappointed that revenue guidance did not materially exceed forecasts, particularly after VRNS’ significant recent appreciation.

Institutional Investors Weigh In On Varonis Systems

Large investors have recently bought and sold shares of the stock. First Trust Advisors LP raised its position in shares of Varonis Systems by 40.6% during the fourth quarter. First Trust Advisors LP now owns 4,427,245 shares of the technology company’s stock worth $145,214,000 after purchasing an additional 1,279,002 shares during the period. RGM Capital LLC grew its position in Varonis Systems by 17.1% in the 4th quarter. RGM Capital LLC now owns 3,160,093 shares of the technology company’s stock valued at $103,651,000 after purchasing an additional 460,580 shares during the period. Cadian Capital Management LP grew its position in Varonis Systems by 25.7% in the 4th quarter. Cadian Capital Management LP now owns 2,282,581 shares of the technology company’s stock valued at $74,869,000 after purchasing an additional 466,481 shares during the period. Soma Equity Partners LP increased its stake in Varonis Systems by 4.8% during the 4th quarter. Soma Equity Partners LP now owns 2,255,117 shares of the technology company’s stock valued at $73,968,000 after purchasing an additional 102,498 shares in the last quarter. Finally, American Capital Management Inc. increased its stake in Varonis Systems by 10.0% during the 4th quarter. American Capital Management Inc. now owns 1,509,039 shares of the technology company’s stock valued at $49,496,000 after purchasing an additional 137,233 shares in the last quarter. 95.65% of the stock is currently owned by institutional investors and hedge funds.

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.