Varonis Systems (NASDAQ:VRNS) Price Target Raised to $50.00 at Needham & Company LLC

Key Points

• Needham raised Varonis Systems’ price target to $50 from $40 and maintained a “Buy” rating, implying 11.93% upside from the previous close. Other firms also lifted targets, while analysts’ consensus rating remained “Moderate Buy” with an average target of $46.63.
• Varonis reported quarterly revenue of $180.02 million, up 18.3% year over year, and EPS of $0.04, beating estimates of $176.83 million and $0.01, respectively. SaaS annual recurring revenue also showed strong growth, reaching $726 million, up 52%.
• Despite the earnings and guidance beats, the stock declined after the release, highlighting elevated investor expectations. The company remains unprofitable on a reported basis, with a negative net margin and return on equity.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its target price hoisted by research analysts at Needham & Company LLC from $40.00 to $50.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the technology company's stock. Needham & Company LLC's price target indicates a potential upside of 11.93% from the stock's previous close.

Several other research firms have also recently weighed in on VRNS. Truist Financial boosted their price objective on 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 report on Tuesday, May 26th. They set a "sector weight" rating for the company. Rosenblatt Securities reissued a "buy" rating and issued a $55.00 price objective on shares of Varonis Systems in a report on Wednesday. Cantor Fitzgerald reissued an "overweight" rating and issued a $55.00 price target (up from $35.00) on shares of Varonis Systems in a research report on Friday. Finally, Weiss Ratings raised Varonis Systems from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, June 30th. Seventeen equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Varonis Systems has a consensus rating of "Moderate Buy" and an average price target of $46.63.

Varonis Systems Price Performance

Shares of NASDAQ VRNS opened at $44.67 on Wednesday. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.69 and a current ratio of 1.69. The firm's 50-day simple moving average is $38.64 and its 200 day simple moving average is $30.56. The stock has a market cap of $5.13 billion, a price-to-earnings ratio of -39.18 and a beta of 0.83. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90.

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, beating the consensus estimate of $0.01 by $0.03. The company had revenue of $180.02 million for the quarter, compared to analysts' expectations of $176.83 million. Varonis Systems had a negative return on equity of 20.27% and a negative net margin of 19.75%.Varonis Systems's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.03 earnings per share. 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, research analysts anticipate that Varonis Systems will post -1.05 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Varonis Systems

Several hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its holdings in shares of Varonis Systems by 161.0% during the first quarter. EverSource Wealth Advisors LLC now owns 1,360 shares of the technology company's stock valued at $29,000 after acquiring an additional 839 shares in the last quarter. Signaturefd LLC boosted its holdings in Varonis Systems by 47.8% in the fourth quarter. Signaturefd LLC now owns 995 shares of the technology company's stock valued at $33,000 after acquiring an additional 322 shares in the last quarter. Empowered Funds LLC purchased a new position in Varonis Systems during the 4th quarter valued at $37,000. Fifth Third Bancorp increased its position in Varonis Systems by 10,694.1% during the 1st quarter. Fifth Third Bancorp now owns 1,835 shares of the technology company's stock valued at $39,000 after purchasing an additional 1,818 shares during the period. Finally, Allworth Financial LP raised its holdings in Varonis Systems by 201.3% in the 3rd quarter. Allworth Financial LP now owns 693 shares of the technology company's stock worth $40,000 after purchasing an additional 463 shares in the last quarter. 95.65% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Varonis Systems

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

• Positive Sentiment: JPMorgan raised its price target to $55 from $39 and maintained an Overweight rating, implying further upside from recent trading levels and signaling increased confidence in Varonis’ growth prospects. JPMorgan Chase & Co. Boosts Varonis Systems Price Target to $55.00
• Positive Sentiment: Q2 revenue rose 18.3% year over year to $180.0 million, exceeding the $176.8 million analyst estimate, while adjusted EPS of $0.04 topped the $0.01 consensus. EPS also improved from $0.03 in the year-ago quarter. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: SaaS annual recurring revenue excluding conversions increased 25% year over year, while total SaaS ARR reached $726 million, up 52%. Management also cited growth in new logos and momentum in Atlas, Interceptor and Database Activity Monitoring.
• Positive Sentiment: Management’s Q3 and full-year 2026 forecasts exceeded consensus EPS expectations. Q3 EPS is projected at $0.02-$0.03 versus an anticipated loss of $0.04, while full-year EPS is forecast at $0.14-$0.15 versus consensus for a $0.11 loss. Full-year revenue guidance of $735 million-$739 million was broadly in line with estimates.
• Neutral Sentiment: The earnings call provided additional commentary on SaaS adoption, newer products and the company’s data- and AI-security strategy, but investors will likely look for sustained growth as Varonis continues its transition toward a SaaS model. Varonis Q2 2026 Earnings Call Transcript
• Negative Sentiment: The stock declined following the earnings release despite the beats, indicating that elevated investor expectations may have outweighed the strong quarterly figures and guidance. Varonis also remains unprofitable on a reported basis, with a negative net margin and return on equity.

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.

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