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

Varonis Systems (NASDAQ:VRNS) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.060-0.100 for the period, compared to the consensus earnings per share estimate of -0.060. The company issued revenue guidance of $722.0 million-$730.0 million, compared to the consensus revenue estimate of $718.1 million. Varonis Systems also updated its Q1 2026 guidance to -0.060–0.050 EPS.

Varonis Systems Trading Down 9.3%

Varonis Systems stock traded down $2.72 during midday trading on Tuesday, reaching $26.53. 10,359,081 shares of the stock traded hands, compared to its average volume of 2,723,924. The firm has a market cap of $3.13 billion, a PE ratio of -26.01 and a beta of 0.58. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.75. The company has a 50-day simple moving average of $32.99 and a two-hundred day simple moving average of $45.77. Varonis Systems has a 12-month low of $25.03 and a 12-month high of $63.90.

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

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. JPMorgan Chase & Co. cut their price objective on shares of Varonis Systems from $62.00 to $50.00 and set an “overweight” rating on the stock in a report on Monday, January 26th. Stephens started coverage on Varonis Systems in a research report on Tuesday, December 30th. They set an “equal weight” rating and a $40.00 price target on the stock. Truist Financial reiterated a “buy” rating and issued a $50.00 price target (down previously from $70.00) on shares of Varonis Systems in a research report on Wednesday, October 29th. TD Cowen increased their target price on shares of Varonis Systems from $62.00 to $68.00 and gave the stock a “buy” rating in a research note on Friday, October 17th. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Varonis Systems in a research note on Wednesday, January 7th. Fifteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $53.50.

Key Stories Impacting 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

Hedge Funds Weigh In On Varonis Systems

A number of institutional investors have recently made changes to their positions in VRNS. CIBC Bancorp USA Inc. acquired a new stake in Varonis Systems during the third quarter worth approximately $677,000. Advisory Services Network LLC purchased a new position in shares of Varonis Systems during the 3rd quarter worth about $75,000. Castleark Management LLC increased its position in Varonis Systems by 21.2% during the third quarter. Castleark Management LLC now owns 104,061 shares of the technology company’s stock worth $5,980,000 after purchasing an additional 18,171 shares during the last quarter. Caxton Associates LLP purchased a new stake in shares of Varonis Systems during the 3rd quarter valued at $1,344,000. Finally, Dark Forest Capital Management LP raised its position in shares of Varonis Systems by 133.6% in the 3rd quarter. Dark Forest Capital Management LP now owns 34,837 shares of the technology company’s stock worth $2,002,000 after buying an additional 19,925 shares during the period. 95.65% of the stock is owned by institutional investors and hedge funds.

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.