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

Varonis Systems (NASDAQ:VRNS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.110-0.120 for the period, compared to the consensus estimate of -0.130. The company issued revenue guidance of $731.0 million-$737.0 million, compared to the consensus revenue estimate of $726.9 million. Varonis Systems also updated its Q2 2026 guidance to 0.000-0.010 EPS.

Varonis Systems Stock Performance

VRNS traded down $0.70 during trading hours on Thursday, hitting $26.59. 1,857,532 shares of the stock were exchanged, compared to its average volume of 2,992,871. The stock has a 50-day simple moving average of $23.35 and a 200-day simple moving average of $31.51. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.90. The stock has a market cap of $3.05 billion, a price-to-earnings ratio of -23.39 and a beta of 0.68. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97.

Varonis Systems (NASDAQ:VRNS) last announced its quarterly earnings data on Tuesday, April 28th. The technology company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $173.13 million for the quarter, compared to analysts’ expectations of $165.52 million. The firm’s revenue for the quarter was up 26.9% compared to the same quarter last year. 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. Analysts anticipate that Varonis Systems will post -0.99 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on VRNS. Royal Bank Of Canada increased their target price on Varonis Systems from $30.00 to $36.00 and gave the stock an “outperform” rating in a research report on Wednesday. B. Riley Financial dropped 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. Cantor Fitzgerald dropped their target price on Varonis Systems from $50.00 to $35.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 4th. William Blair reaffirmed a “market perform” rating on shares of Varonis Systems in a research report on Monday, March 23rd. Finally, Needham & Company LLC increased their target price on Varonis Systems from $30.00 to $36.00 and gave the stock a “buy” rating in a research report on Wednesday. Fifteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $41.32.

Insider Transactions at Varonis Systems

In other Varonis Systems news, Director Avrohom J. Kess purchased 17,800 shares of the firm’s stock in a transaction dated Friday, February 6th. The stock was bought at an average price of $22.29 per share, with a total value of $396,762.00. Following the completion of the purchase, the director owned 49,403 shares in the company, valued at $1,101,192.87. This trade represents a 56.32% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP David Bass purchased 2,980 shares of the firm’s stock in a transaction dated Monday, February 9th. The stock was acquired at an average cost of $23.47 per share, with a total value of $69,940.60. Following the purchase, the executive vice president owned 1,042,924 shares of the company’s stock, valued at approximately $24,477,426.28. This represents a 0.29% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 25,780 shares of company stock valued at $579,403. 2.30% of the stock is currently owned by corporate insiders.

Varonis Systems News Summary

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

• Positive Sentiment: Q1 beat and raised guidance — Varonis reported Q1 revenue and EPS above consensus, strong SaaS ARR growth, and raised FY2026 guidance (EPS and ARR range), signaling accelerating SaaS monetization and better near‑term profitability outlook. GlobeNewswire Q1 Release
• Positive Sentiment: Analysts lift targets and ratings — A wave of upgrades and price‑target increases from major firms (JPMorgan, UBS, RBC, Wells Fargo, Barclays, Wedbush, Needham, Susquehanna, DA Davidson, etc.) reflects confidence that SaaS ARR acceleration and guidance justify higher valuation. Benzinga roundup
• Positive Sentiment: Product and SaaS transition momentum — Commentary and analysis highlight completion of the SaaS transition, accelerating recurring revenue (SaaS ARR ex‑conversions up ~29% y/y) and early traction for new offerings (Atlas, Interceptor), which could drive longer‑term upsells. Seeking Alpha analysis
• Negative Sentiment: Shareholder litigation probe — Kuehn Law announced an investigation alleging officers misled investors about the company’s ability to convert legacy customers to SaaS, introducing legal and reputational risk that can pressure the stock. PR Newswire
• Negative Sentiment: Profitability still challenges — Despite revenue growth, Varonis remains unprofitable on a GAAP basis (negative net margin and ROE noted in filings), leaving execution and margin improvement as investor focal points. MarketBeat earnings summary

Hedge Funds Weigh In On Varonis Systems

Several hedge funds have recently modified their holdings of the company. First Trust Advisors LP lifted its holdings in shares of 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 period. RGM Capital LLC grew its holdings 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 valued at $103,651,000 after buying an additional 460,580 shares in the last quarter. Cadian Capital Management LP grew 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 buying an additional 466,481 shares in the last quarter. Soma Equity Partners LP grew its holdings in shares of Varonis Systems by 4.8% during the fourth quarter. Soma Equity Partners LP now owns 2,255,117 shares of the technology company’s stock valued at $73,968,000 after buying an additional 102,498 shares in the last quarter. Finally, American Capital Management Inc. boosted its position in Varonis Systems by 10.0% during the fourth 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 during the last quarter. 95.65% of the stock is currently 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.