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

Varonis Systems (NASDAQ:VRNS) updated its FY 2026 earnings guidance on Tuesday morning. 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.

Wall Street Analysts Forecast Growth

VRNS has been the topic of a number of recent analyst reports. UBS Group boosted their target price on Varonis Systems from $37.00 to $58.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. Royal Bank Of Canada increased their price target on Varonis Systems from $30.00 to $36.00 and gave the company an “outperform” rating in a research report on Wednesday, April 29th. DA Davidson lifted their price target on Varonis Systems from $30.00 to $37.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. Weiss Ratings upgraded Varonis Systems from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, June 30th. Finally, 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. Eighteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $48.26.

Varonis Systems Stock Down 1.1%

NASDAQ VRNS traded down $0.45 during trading on Thursday, reaching $40.20. 542,480 shares of the company’s stock were exchanged, compared to its average volume of 2,685,377. The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 1.00. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90. The company’s fifty day simple moving average is $38.83 and its 200-day simple moving average is $30.60. The firm has a market capitalization of $4.62 billion, a PE ratio of -32.58 and a beta of 0.83.

Varonis Systems (NASDAQ:VRNS) last issued its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.03. The company had revenue of $180.02 million for the quarter, compared to the consensus estimate of $176.83 million. Varonis Systems had a negative return on equity of 18.24% and a negative net margin of 20.55%.The firm’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $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. Sell-side analysts predict that Varonis Systems will post -1.05 EPS for the current year.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: Q2 results exceeded expectations: Varonis reported adjusted EPS of $0.04 versus the $0.01 consensus estimate, while revenue rose 18.3% year over year to $180.0 million, topping the $176.8 million forecast. Varonis Q2 earnings article
• Positive Sentiment: SaaS momentum remained strong: Total SaaS annual recurring revenue increased 52% to $726 million, while SaaS ARR excluding conversions grew 25%. Management also cited growing demand for AI security and momentum in Atlas, Interceptor and Database Activity Monitoring. Varonis second-quarter results
• Positive Sentiment: Outlook improved: Varonis raised its 2026 SaaS ARR growth outlook to 20%-21% and projected $105 million-$110 million in free cash flow. Full-year revenue guidance of $735 million-$739 million and EPS guidance of $0.14-$0.15 were also above consensus expectations. Varonis raises SaaS ARR outlook
• Positive Sentiment: Analyst sentiment strengthened: Piper Sandler, Susquehanna, TD Cowen, Needham and JPMorgan raised their price targets, with targets ranging from $50 to $58. The brokerage consensus remains “Moderate Buy.” Varonis consensus rating
• Neutral Sentiment: Mixed analyst view: Although most firms remain bullish, Barclays trimmed its target to $50 and Baird maintained a neutral rating, indicating some caution after the stock’s strong run.
• Negative Sentiment: Profitability remains a concern: Varonis continues to report a negative net margin and negative return on equity. The shares also initially declined after the earnings release, suggesting that investors may have been expecting an even stronger outlook despite the quarterly beat.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors have recently modified their holdings of VRNS. Empowered Funds LLC acquired a new position in shares of Varonis Systems in the fourth quarter worth $37,000. EverSource Wealth Advisors LLC boosted its position in Varonis Systems by 344.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company’s stock valued at $62,000 after purchasing an additional 940 shares during the last quarter. Harvest Fund Management Co. Ltd acquired a new stake in Varonis Systems during the third quarter valued at $68,000. Advisory Services Network LLC purchased a new position in Varonis Systems in the third quarter valued at about $75,000. Finally, Advisors Asset Management Inc. grew its stake in Varonis Systems by 684.9% in the fourth quarter. Advisors Asset Management Inc. now owns 3,650 shares of the technology company’s stock valued at $120,000 after purchasing an additional 3,185 shares in the last quarter. Institutional investors and hedge funds 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.