Varonis Systems (NASDAQ:VRNS) Price Target Raised to $39.00

Key Points

• JPMorgan raised its price target to $39 (from $38) with an "overweight" rating — implying roughly a 42.9% upside — and the consensus analyst price target sits at about $41.32 with a majority of analysts rating the stock a Buy.
• Varonis beat Q1 expectations (EPS $0.06 vs. -$0.05 est; revenue $173.1M vs. $165.5M est), raised Q2 and FY2026 guidance, and reported strong SaaS ARR growth of $683.2M (≈+69% YoY) with a 2026 ARR target of $814M–$845M.
• The company still remains unprofitable (negative net margin and ROE) and trades below its 200‑day moving average, although insiders purchased shares recently and institutional ownership is very high (~95.7%).

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price target upped by analysts at JPMorgan Chase & Co. from $38.00 to $39.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the technology company's stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 42.91% from the stock's previous close.

Other research analysts have also recently issued reports about the stock. Truist Financial dropped their price objective on shares of Varonis Systems from $42.00 to $34.00 and set a "buy" rating for the company in a research note on Wednesday, February 4th. Wedbush raised their price objective on shares of Varonis Systems from $35.00 to $37.00 and gave the stock an "outperform" rating in a research note on Wednesday. Barclays raised their price objective on shares of Varonis Systems from $28.00 to $33.00 and gave the stock an "overweight" rating in a research note on Wednesday. Weiss Ratings restated a "sell (d-)" rating on shares of Varonis Systems in a report on Wednesday, January 21st. Finally, Cantor Fitzgerald reduced their target price on shares of Varonis Systems from $50.00 to $35.00 and set an "overweight" rating on the stock in a 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 stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $41.32.

Varonis Systems Price Performance

Varonis Systems stock traded up $1.85 during mid-day trading on Wednesday, reaching $27.29. The company had a trading volume of 6,862,051 shares, compared to its average volume of 2,990,477. Varonis Systems has a 1 year low of $19.70 and a 1 year high of $63.90. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97. The company has a market capitalization of $3.13 billion, a P/E ratio of -23.94 and a beta of 0.68. The stock's 50-day simple moving average is $23.32 and its 200-day simple moving average is $31.54.

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

Insider Buying and Selling

In related news, Director Avrohom J. Kess bought 17,800 shares of the company'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 transaction, the director owned 49,403 shares of the company's stock, valued at approximately $1,101,192.87. This trade represents a 56.32% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP David Bass bought 2,980 shares of the company's stock in a transaction dated Monday, February 9th. The stock was bought at an average cost 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. The trade was a 0.29% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 25,780 shares of company stock valued at $579,403 in the last quarter. Company insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On Varonis Systems

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Stephens Inc. AR increased its position in shares of Varonis Systems by 53.7% in the 1st quarter. Stephens Inc. AR now owns 16,723 shares of the technology company's stock worth $359,000 after purchasing an additional 5,840 shares during the last quarter. Stephens Investment Management Group LLC increased its position in shares of Varonis Systems by 17.9% in the 1st quarter. Stephens Investment Management Group LLC now owns 1,992,760 shares of the technology company's stock worth $42,785,000 after purchasing an additional 302,411 shares during the last quarter. Y Intercept Hong Kong Ltd increased its position in shares of Varonis Systems by 160.1% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 282,767 shares of the technology company's stock worth $6,071,000 after purchasing an additional 174,036 shares during the last quarter. Peregrine Capital Management LLC increased its position in shares of Varonis Systems by 15.1% in the 1st quarter. Peregrine Capital Management LLC now owns 326,153 shares of the technology company's stock worth $7,003,000 after purchasing an additional 42,786 shares during the last quarter. Finally, Inspire Investing LLC increased its position in shares of Varonis Systems by 68.9% in the 1st quarter. Inspire Investing LLC now owns 24,023 shares of the technology company's stock worth $516,000 after purchasing an additional 9,804 shares during the last quarter. Institutional investors own 95.65% of the company's stock.

Trending Headlines about Varonis Systems

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

• Positive Sentiment: Q1 beat and raised outlook — Varonis reported $0.06 EPS (vs. consensus -$0.05) and revenue of $173.1M (vs. ~$165.5M est). Management raised Q2 and FY2026 guidance (Q2 EPS 0.000–0.010; FY EPS 0.110–0.120) and increased revenue targets, signaling improving profitability trajectory and stronger SaaS growth. Varonis Announces First Quarter 2026 Financial Results
• Positive Sentiment: SaaS ARR acceleration and outlook lift — Management signaled a 2026 total SaaS ARR range ($814M–$845M) and reported total SaaS ARR of $683.2M (up ~69% YoY), supporting recurring-revenue momentum that underpins higher margin potential. Varonis signals $814M-$845M 2026 total SaaS ARR
• Positive Sentiment: Multiple analyst price-target upgrades — Several brokers raised targets and ratings after the print (examples include Wedbush, RBC, Wells Fargo, Barclays, Needham, Susquehanna and others), reflecting consensus upward revisions to revenue/ARR assumptions and driving buy-side interest. These Analysts Increase Their Forecasts On Varonis Systems Following Q1 Results
• Neutral Sentiment: Product/strategy updates — Varonis launched Varonis Atlas (AI capabilities via the AllTrue.ai acquisition), which may expand product monetization over time but will require execution to move the needle. Q1 press release (product note)
• Negative Sentiment: Profitability and valuation caveats — Despite the beat and guidance, Varonis still shows negative net margin and negative ROE; shares remain well below the 52-week high and the 200‑day moving average, leaving scope for downside if ARR or margin conversion stalls. Earnings summary and metrics

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.

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