Varonis Systems (NASDAQ:VRNS) Releases Q2 2026 Earnings Guidance

Varonis Systems (NASDAQ:VRNS) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.000-0.010 for the period, compared to the consensus earnings per share estimate of -0.040. The company issued revenue guidance of $175.0 million-$178.0 million, compared to the consensus revenue estimate of $176.5 million. Varonis Systems also updated its FY 2026 guidance to 0.110-0.120 EPS.

Varonis Systems Price Performance

NASDAQ VRNS traded up $2.29 during trading hours on Wednesday, reaching $27.73. The company’s stock had a trading volume of 3,392,475 shares, compared to its average volume of 2,963,155. The firm’s 50-day moving average price is $23.32 and its 200-day moving average price is $31.54. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76. Varonis Systems has a 1 year low of $19.70 and a 1 year high of $63.90. The company has a market capitalization of $3.18 billion, a price-to-earnings ratio of -24.44 and a beta of 0.68.

Varonis Systems (NASDAQ:VRNS) last posted its quarterly earnings results on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.11. Varonis Systems had a negative return on equity of 22.95% and a negative net margin of 20.74%.The company had revenue of $173.13 million for the quarter, compared to analysts’ expectations of $165.52 million. Varonis Systems’s quarterly revenue was up 26.9% on a year-over-year basis. Varonis Systems has set its FY 2026 guidance at 0.110-0.120 EPS and its Q2 2026 guidance at 0.000-0.010 EPS. On average, equities research analysts predict that Varonis Systems will post -0.99 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Varonis Systems in a research report on Wednesday, January 21st. Citigroup cut their target price on Varonis Systems from $37.00 to $28.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 4th. Stephens boosted their target price on Varonis Systems from $30.00 to $33.00 and gave the company an “equal weight” rating in a research report on Wednesday. Wedbush boosted their target price on Varonis Systems from $35.00 to $37.00 and gave the company an “outperform” rating in a research report on Wednesday. Finally, B. Riley Financial cut their target price on Varonis Systems from $58.00 to $45.00 and set a “buy” rating on the stock in a research report on Wednesday, February 4th. Fifteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $41.84.

Insider Activity

In other news, EVP David Bass acquired 2,980 shares of the business’s stock in a transaction dated Monday, February 9th. The shares were purchased at an average price of $23.47 per share, with a total value of $69,940.60. Following the transaction, the executive vice president directly owned 1,042,924 shares in the company, valued at approximately $24,477,426.28. This represents a 0.29% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Avrohom J. Kess acquired 17,800 shares of Varonis Systems stock in a transaction that occurred on Friday, February 6th. The shares were purchased at an average price of $22.29 per share, with a total value of $396,762.00. Following the purchase, the director owned 49,403 shares in the company, valued at $1,101,192.87. This represents a 56.32% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have bought 25,780 shares of company stock worth $579,403. Corporate insiders own 2.30% of the company’s stock.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Q1 beats — Varonis reported Q1 revenue of $173.1M (+26.9% YoY) and EPS of $0.06, beating consensus revenue and EPS estimates; management emphasized SaaS growth. Press Release
• Positive Sentiment: Raised guidance — Varonis updated Q2 EPS guidance to $0.00–$0.01 (vs. consensus -$0.04) and FY2026 EPS to $0.110–$0.120 (vs. consensus -$0.13); revenue outlook also topped Street expectations, signaling improved profitability trajectory. Earnings Release
• Positive Sentiment: SaaS ARR acceleration — Management signaled full-year total SaaS ARR of $814M–$845M (up materially vs. prior expectations) and disclosed total SaaS ARR of $683.2M; the company also launched Varonis Atlas after the AllTrue.ai acquisition, highlighting AI-driven product expansion. Seeking Alpha
• Positive Sentiment: Analyst upgrades and price-target raises — Multiple firms lifted targets and ratings after the print: Susquehanna to $36 (positive), Needham to $36 (buy) and Stephens to $33 (equal weight), reflecting renewed analyst confidence in growth and margin improvement. Analyst Notes
• Neutral Sentiment: Conference call and transcript available — The company provided detailed commentary in its Q1 call and slide deck for investors to assess ARR comps, cloud conversion cadence and margin path. Call Slides
• Negative Sentiment: Profitability still a concern — Despite beats, Varonis reports negative net margin (~-20.7%) and negative ROE (~-22.9%); analysts still project a negative full-year EPS on average, so sustained profitability is not yet proven. Zacks

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in VRNS. First Trust Advisors LP raised its stake in Varonis Systems by 40.6% in 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 buying an additional 1,279,002 shares during the last quarter. RGM Capital LLC grew its stake in shares of Varonis Systems by 17.1% during the fourth quarter. RGM Capital LLC now owns 3,160,093 shares of the technology company’s stock worth $103,651,000 after acquiring an additional 460,580 shares during the last quarter. Cadian Capital Management LP increased its holdings 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 acquiring an additional 466,481 shares in the last quarter. Soma Equity Partners LP raised its position in shares of Varonis Systems by 4.8% in 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 during the last quarter. Finally, American Capital Management Inc. boosted its stake in Varonis Systems by 10.0% in the 4th quarter. American Capital Management Inc. now owns 1,509,039 shares of the technology company’s stock worth $49,496,000 after purchasing an additional 137,233 shares in the last quarter. 95.65% of the stock is currently 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.