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

Varonis Systems (NASDAQ:VRNS) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.140-0.150 for the period, compared to the consensus EPS estimate of -0.110. The company issued revenue guidance of $735.0 million-$739.0 million, compared to the consensus revenue estimate of $734.8 million. Varonis Systems also updated its Q3 2026 guidance to 0.020-0.030 EPS.

Varonis Systems Stock Performance

VRNS stock traded down $3.58 during midday trading on Wednesday, hitting $41.09. The company’s stock had a trading volume of 1,729,217 shares, compared to its average volume of 2,680,985. Varonis Systems has a 1 year low of $19.70 and a 1 year high of $63.90. The stock’s 50-day moving average price is $38.64 and its 200 day moving average price is $30.56. The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 1.00. The stock has a market cap of $4.72 billion, a price-to-earnings ratio of -36.00 and a beta of 0.83.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. The business had revenue of $180.02 million during the quarter, compared to analyst estimates of $176.83 million. Varonis Systems had a negative return on equity of 20.27% and a negative net margin of 19.75%.Varonis Systems’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter in the prior year, the company 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. On average, equities analysts forecast that Varonis Systems will post -1.05 EPS for the current year.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $55.00 price objective (up from $35.00) on shares of Varonis Systems in a research note on Friday, July 24th. KeyCorp began coverage on shares of Varonis Systems in a report on Tuesday, May 26th. They issued a “sector weight” rating on the stock. Wells Fargo & Company increased their price objective on shares of Varonis Systems from $35.00 to $50.00 and gave the company an “overweight” rating in a research report on Monday, July 20th. New Street Research reissued a “buy” rating on shares of Varonis Systems in a report on Wednesday. Finally, Citigroup reissued an “overweight” rating on shares of Varonis Systems in a research note on Friday, July 24th. Eighteen investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $46.68.

Varonis Systems News Roundup

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

• Positive Sentiment: Strong Q2 results: Varonis reported adjusted EPS of $0.04, exceeding the $0.01 consensus estimate, while revenue rose 18.3% year over year to $180.0 million, above expectations of $176.8 million. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: SaaS momentum remained healthy: Total SaaS annual recurring revenue reached $726.0 million, up 52% year over year, while SaaS ARR excluding conversions increased 25%. Management also cited growth in new customer accounts and momentum in Atlas, Interceptor and Database Activity Monitoring. Q2 Financial Results
• Positive Sentiment: Guidance was raised well above analyst expectations: Varonis forecast third-quarter EPS of $0.02-$0.03 versus consensus for a $0.04 loss, and full-year EPS of $0.14-$0.15 versus a projected $0.11 loss. Full-year revenue guidance of $735 million-$739 million was also slightly above consensus. Analysts subsequently maintained or raised targets, including TD Cowen at $53, JPMorgan at $55, Needham at $50 and Rosenblatt at $55. Analyst Ratings and Price Targets
• Neutral Sentiment: Barclays lowered its price target from $52 to $50 but retained an “overweight” rating, while Baird raised its target from $40 to $45 and kept a “neutral” rating. These actions indicate continued confidence in the business, but also more measured expectations after the earnings release. Analyst Ratings
• Negative Sentiment: The market reaction has been unfavorable despite the headline beat. Varonis remains unprofitable, with a reported negative net margin of 19.75% and negative return on equity of 20.27%. Investors may also have expected an even stronger earnings outlook given the stock’s prior rally. Q2 Results and Stock Reaction

Institutional Investors Weigh In On Varonis Systems

Hedge funds have recently made changes to their positions in the business. Jacobs Levy Equity Management Inc. bought a new stake in shares of Varonis Systems during the 4th quarter valued at $48,263,000. First Trust Advisors LP lifted its position in 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 valued at $145,214,000 after purchasing an additional 1,279,002 shares during the last quarter. Bamco Inc. NY boosted its stake in Varonis Systems by 119.3% during the fourth quarter. Bamco Inc. NY now owns 1,226,240 shares of the technology company’s stock worth $40,221,000 after buying an additional 666,990 shares during the period. ION Fund Management Ltd bought a new stake in shares of Varonis Systems during the fourth quarter worth $15,744,000. Finally, Cadian Capital Management LP increased its stake in shares of Varonis Systems by 25.7% during the fourth quarter. Cadian Capital Management LP now owns 2,282,581 shares of the technology company’s stock valued at $74,869,000 after buying an additional 466,481 shares during the period. 95.65% of the stock is currently owned by institutional investors.

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.