Varonis Systems, Inc. (NASDAQ:VRNS) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a Moderate Buy consensus: Eighteen of 24 analysts rate Varonis Systems a buy, with an average 12-month price target of approximately $48.26.
• Recent results exceeded expectations: Quarterly EPS came in at $0.04 versus $0.01 expected, while revenue rose 18.3% year over year to $180.02 million. Management guided to 2026 EPS of $0.14–$0.15 and raised its SaaS annual recurring revenue growth outlook to 20%–21%.
• Risks remain despite improving growth: Varonis is still unprofitable, with a negative net margin and return on equity, and its shares have experienced notable volatility after trading down 9% and remaining well below the 52-week high.

Varonis Systems, Inc. (NASDAQ:VRNS - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twenty-four analysts that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, five have given a hold rating and eighteen have given a buy rating to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $48.2632.

Several research firms recently weighed in on VRNS. Truist Financial boosted their price objective on shares of Varonis Systems from $34.00 to $52.00 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. KeyCorp started coverage on Varonis Systems in a research report on Tuesday, May 26th. They issued a "sector weight" rating on the stock. DA Davidson lifted their target price on Varonis Systems from $30.00 to $37.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. B. Riley Financial lifted their target price on Varonis Systems from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Finally, Royal Bank Of Canada boosted 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, April 29th.

Institutional Trading of Varonis Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP lifted its position in Varonis Systems by 201.3% during the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company's stock valued at $40,000 after purchasing an additional 463 shares during the period. Signaturefd LLC grew its position in shares of Varonis Systems by 47.8% during the 4th quarter. Signaturefd LLC now owns 995 shares of the technology company's stock worth $33,000 after buying an additional 322 shares during the period. Empowered Funds LLC bought a new stake in shares of Varonis Systems during the fourth quarter worth approximately $37,000. Harvest Fund Management Co. Ltd bought a new stake in shares of Varonis Systems during the third quarter worth approximately $68,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in 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 buying an additional 940 shares during the period. 95.65% of the stock is owned by institutional investors.

Varonis Systems Trading Down 9.0%

VRNS opened at $40.65 on Thursday. The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 1.00. The stock has a market capitalization of $4.67 billion, a PE ratio of -33.05 and a beta of 0.83. Varonis Systems has a 1-year low of $19.70 and a 1-year high of $63.90. The firm has a 50-day moving average price of $38.83 and a two-hundred day moving average price of $30.60.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last announced its earnings results on Tuesday, July 28th. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.03. Varonis Systems had a negative net margin of 20.55% and a negative return on equity of 18.24%. The company had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. During the same period in the prior year, the business earned $0.03 earnings per share. Varonis Systems's quarterly revenue was up 18.3% on a year-over-year basis. 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. As a group, equities analysts anticipate that Varonis Systems will post -1.05 earnings per share for the current fiscal year.

Key Varonis Systems News

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

• Positive Sentiment: Varonis reported second-quarter EPS of $0.04, above the $0.01 analyst consensus, while revenue of $180.0 million exceeded expectations of $176.8 million and increased 18.3% year over year. Varonis Q2 Earnings Surpass Expectations
• Positive Sentiment: Management raised its 2026 SaaS annual recurring revenue outlook to 20%-21% growth and indicated free cash flow of $105 million-$110 million, supporting the investment case for its recurring-revenue transition. Varonis Signals Free Cash Flow and SaaS ARR Outlook
• Positive Sentiment: SaaS ARR excluding conversions grew 25% year over year, while total SaaS ARR reached $726 million, up 52%. The company cited demand for AI and data security products, including Atlas, Interceptor and Database Activity Monitoring. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Full-year 2026 guidance calls for EPS of $0.14-$0.15 and revenue of $735 million-$739 million, while third-quarter guidance of $0.02-$0.03 EPS is well above the prior consensus loss estimate.
• Positive Sentiment: Analysts raised targets after the results: Piper Sandler to $58, Susquehanna to $55, TD Cowen to $53, Needham to $50 and JPMorgan to $55. Rosenblatt reaffirmed its buy rating with a $55 target.
• Neutral Sentiment: Barclays trimmed its target to $50 but retained an overweight rating, while Baird raised its target to $45 but maintained a neutral rating, indicating continued valuation and execution concerns.
• Negative Sentiment: Despite the earnings beats and improved outlook, VRNS remains unprofitable on a reported basis, with a negative net margin and negative return on equity. The elevated trading volume and recent share-price gains may also be encouraging investors to lock in profits.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.