Varonis Systems (NASDAQ:VRNS) Given New $36.00 Price Target at Needham & Company LLC

Key Points

• Needham & Company raised its price target on Varonis from $30 to $36 and maintains a "buy" rating, implying roughly 41.5% upside, while consensus remains a "Moderate Buy" with an average target of $42.21.
• Varonis topped Q1 expectations with $0.06 EPS (vs. -$0.05) and $173.1M in revenue, reported strong SaaS ARR expansion (total $683.2M, up 69% YoY) and raised Q2 and FY26 guidance, signaling improving growth momentum.
• Profitability is still a material risk—Varonis posted a ~-20.7% net margin and negative ROE—leaving execution and sustained margin improvement as key valuation drivers, even as insiders recently bought shares.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its target price raised by investment analysts at Needham & Company LLC from $30.00 to $36.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the technology company's stock. Needham & Company LLC's price objective would suggest a potential upside of 41.51% from the company's previous close.

Several other equities analysts have also recently commented on VRNS. Weiss Ratings reiterated a "sell (d-)" rating on shares of Varonis Systems in a research note on Wednesday, January 21st. Royal Bank Of Canada lowered their price target on Varonis Systems from $60.00 to $41.00 and set an "outperform" rating on the stock in a research note on Monday, January 5th. Citigroup lowered their price target on Varonis Systems from $37.00 to $28.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 4th. UBS Group set a $50.00 price target on Varonis Systems in a research note on Monday, January 26th. Finally, Morgan Stanley restated an "equal weight" rating and set a $41.00 price target (down from $44.00) on shares of Varonis Systems in a research note on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $42.21.

Varonis Systems Trading Up 1.6%

Varonis Systems stock opened at $25.44 on Wednesday. Varonis Systems has a 52 week low of $19.70 and a 52 week high of $63.90. The business's 50-day simple moving average is $23.32 and its 200-day simple moving average is $31.54. The firm has a market capitalization of $2.92 billion, a PE ratio of -22.32 and a beta of 0.68. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.97 and a current ratio of 1.97.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its earnings results on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, beating the consensus estimate of ($0.05) by $0.11. The firm had revenue of $173.13 million during the quarter, compared to analysts' expectations of $165.52 million. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 22.95%. The firm's 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. Equities research analysts forecast that Varonis Systems will post -0.99 earnings per share for the current year.

Insider Buying and Selling at Varonis Systems

In related news, Director Avrohom J. Kess acquired 17,800 shares of the firm's stock in a transaction on Friday, February 6th. The shares were bought at an average cost of $22.29 per share, with a total value of $396,762.00. Following the completion of the acquisition, the director owned 49,403 shares of the company's stock, valued at $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director John J. Gavin, Jr. acquired 5,000 shares of the firm's stock in a transaction on Friday, February 6th. The shares were bought at an average cost of $22.54 per share, for a total transaction of $112,700.00. Following the completion of the acquisition, the director directly owned 273,666 shares of the company's stock, valued at approximately $6,168,431.64. This represents a 1.86% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have purchased 25,780 shares of company stock valued at $579,403. 2.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors have recently added to or reduced their stakes in the stock. Signaturefd LLC grew its position in 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 acquiring an additional 322 shares during the last quarter. Empowered Funds LLC bought a new stake in Varonis Systems during the 4th quarter worth approximately $37,000. Allworth Financial LP grew 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 worth $40,000 after acquiring an additional 463 shares during the last quarter. Neo Ivy Capital Management bought a new stake in Varonis Systems during the 3rd quarter worth approximately $42,000. Finally, First Horizon Corp bought a new stake in Varonis Systems during the 3rd quarter worth approximately $45,000. 95.65% of the stock is owned by institutional investors and hedge funds.

Varonis Systems News Roundup

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

• Positive Sentiment: Q1 EPS and revenue topped estimates: Varonis reported $0.06 EPS versus a consensus loss and revenue of $173.1M above Street estimates, signaling stronger demand and better-than-expected operating leverage for the quarter. Varonis Systems (VRNS) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised guidance materially above consensus: Varonis set Q2 EPS guidance of $0.00–$0.01 (vs. consensus -$0.04) and FY26 EPS of $0.110–$0.120 (vs. consensus -$0.13), and raised revenue targets — a clear signal of improving profitability trajectory and confidence in growth. Varonis Announces First Quarter 2026 Financial Results
• Positive Sentiment: Strong SaaS ARR expansion and product momentum: Total SaaS ARR $683.2M (up 69% YoY) and SaaS ARR excluding conversions up 29% YoY; company launched Varonis Atlas (AI capability via AllTrue.ai acquisition) — supports recurring revenue durability and potential upsell/cross-sell. Varonis Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Earnings call transcript highlights execution details: Management discussed ARR dynamics, product adoption and integration of AI capabilities — useful for gauging sustainability of revenue growth but requires follow-up on sales efficiency and churn metrics. Varonis Systems, Inc. (VRNS) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst previews and metric comparisons: Coverage (Zacks/TipRanks/Yahoo) frames the quarter versus expectations and may drive short-term analyst reactions and re-ratings; watch revisions to estimates and model assumptions. Varonis (VRNS) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Profitability remains a concern: Despite revenue and ARR growth, Varonis still shows a negative net margin (~-20.7%) and negative ROE, leaving execution and path-to-consistent profitability as key risks that could cap valuation until sustained positive margins appear. Varonis Q1 Results and Metrics

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.