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

Varonis Systems (NASDAQ:VRNS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.060-0.100 for the period, compared to the consensus EPS 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.

Analysts Set New Price Targets

A number of research analysts recently issued reports on VRNS shares. Morgan Stanley reiterated an “equal weight” rating and issued a $41.00 target price (down from $44.00) on shares of Varonis Systems in a research note on Monday, January 26th. Stephens started coverage on Varonis Systems in a research report on Tuesday, December 30th. They issued an “equal weight” rating and a $40.00 price target on the stock. JPMorgan Chase & Co. reduced their price objective on Varonis Systems from $50.00 to $38.00 and set an “overweight” rating for the company in a research report on Wednesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Finally, Robert W. Baird cut Varonis Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 29th. Sixteen equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $45.25.

Varonis Systems Stock Down 5.1%

Shares of NASDAQ:VRNS traded down $1.20 during midday trading on Thursday, reaching $22.47. 3,475,404 shares of the company were exchanged, compared to its average volume of 3,444,120. The firm has a market cap of $2.65 billion, a PE ratio of -19.69 and a beta of 0.58. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.75. Varonis Systems has a fifty-two week low of $20.06 and a fifty-two week high of $63.90. The stock has a fifty day simple moving average of $32.82 and a two-hundred day simple moving average of $45.61.

Varonis Systems (NASDAQ:VRNS) last released its earnings results on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.03 by $0.05. The firm had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. Varonis Systems had a negative return on equity of 25.05% and a negative net margin of 20.74%.The business’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $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. As a group, sell-side analysts forecast that Varonis Systems will post -0.83 earnings per share for the current year.

Varonis Systems News Summary

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

• Positive Sentiment: Beat on Q4 and SaaS momentum — Varonis reported Q4 revenue and EPS above estimates, strong ARR and SaaS ARR growth, and improved cash flow metrics, which support longer-term SaaS monetization trends. Varonis Announces Fourth Quarter 2025 and Full-Year 2025 Financial Results
• Positive Sentiment: Strategic AI acquisition — Varonis announced it will acquire AllTrue.ai (AI TRiSM) to add AI trust, risk and security capabilities to its data-security stack, which is strategically aligned with enterprise demand for AI governance. Varonis to Acquire AllTrue-ai to Manage and Secure AI Across the Enterprise
• Positive Sentiment: Analyst upgrade — DA Davidson upgraded VRNS from Neutral to Buy with a $30 price target, signaling at least one shop views the pullback as a buying opportunity given SaaS trends.
• Neutral Sentiment: Mixed guidance — Management raised FY?2026 revenue and issued FY EPS guidance that is positive versus prior consensus, but Q1 EPS guidance is slightly negative (in line with expectations). The guidance is mixed: supportive for the full year, while near-term profitability remains pressured.
• Negative Sentiment: Large cluster of securities?fraud class actions and law?firm solicitations — Multiple firms have filed or announced class actions alleging misstatements around the SaaS transition (class period cited Feb 4, 2025–Oct 28, 2025). Litigation risk and the wave of lead?plaintiff solicitations amplify uncertainty and sell?side pressure. SHAREHOLDER ALERT Bernstein Liebhard LLP Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Varonis Systems, Inc. (NASDAQ: VRNS)
• Negative Sentiment: Broad analyst price?target cuts — Several major firms (JPMorgan, Cantor, Citigroup, Wedbush, B. Riley, Needham, Truist, etc.) lowered price targets after the release, signaling reduced near?term expectations and contributing to downward pressure on the stock.
• Negative Sentiment: Options and short?term bearish bets — Unusually large put option activity was reported (several thousand puts traded), indicating elevated near?term bearish positioning by traders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC boosted its position in shares of Varonis Systems by 344.3% in the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company’s stock valued at $62,000 after acquiring an additional 940 shares during the period. Harvest Fund Management Co. Ltd bought a new stake in shares of Varonis Systems in the third quarter valued at approximately $68,000. Advisory Services Network LLC acquired a new stake in Varonis Systems during the third quarter worth approximately $75,000. Caxton Associates LLP acquired a new stake in shares of Varonis Systems during the 1st quarter worth approximately $200,000. Finally, Twin Tree Management LP bought a new stake in shares of Varonis Systems during the 3rd quarter worth $211,000. 95.65% of the stock is 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.