Varonis Systems (NASDAQ:VRNS) Price Target Raised to $58.00

Key Points

• Piper Sandler raised Varonis Systems’ price target from $47 to $58 and maintained an “overweight” rating, implying roughly 40% upside from the cited share price. The broader analyst consensus is “Moderate Buy,” with an average target of $48.26.
• Varonis exceeded second-quarter expectations, reporting adjusted EPS of $0.04 versus $0.01 expected and revenue of $180.0 million, up 18.3% year over year. Management also issued stronger-than-expected third-quarter and full-year EPS guidance.
• Despite the earnings beat and strong SaaS growth, the stock traded down to $41.32 and the company remains unprofitable, with a negative net margin of 19.75% and negative return on equity of 20.27%.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price objective lifted by analysts at Piper Sandler from $47.00 to $58.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the technology company's stock. Piper Sandler's target price suggests a potential upside of 40.36% from the company's previous close.

A number of other equities research analysts also recently weighed in on VRNS. Susquehanna lifted their price objective on Varonis Systems from $36.00 to $55.00 and gave the company a "positive" rating in a report on Wednesday. JPMorgan Chase & Co. lifted their price target on shares of Varonis Systems from $39.00 to $55.00 and gave the company an "overweight" rating in a report on Monday. Stephens raised shares of Varonis Systems from an "equal weight" rating to an "overweight" rating and upped their price objective for the stock from $33.00 to $45.00 in a research note on Wednesday, June 24th. Rosenblatt Securities reiterated a "buy" rating and issued a $55.00 target price on shares of Varonis Systems in a research note on Wednesday. Finally, UBS Group lifted their price objective on Varonis Systems from $37.00 to $58.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Eighteen 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's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.26.

Varonis Systems Stock Performance

Shares of VRNS stock traded down $3.35 during mid-day trading on Wednesday, reaching $41.32. The stock had a trading volume of 2,307,636 shares, compared to its average volume of 2,685,098. The firm has a market cap of $4.74 billion, a PE ratio of -36.04 and a beta of 0.83. The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 1.00. Varonis Systems has a one year low of $19.70 and a one year high of $63.90. The firm's 50 day simple moving average is $38.64 and its 200 day simple moving average is $30.56.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its earnings results on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.01 by $0.03. Varonis Systems had a negative return on equity of 20.27% and a negative net margin of 19.75%.The firm had revenue of $180.02 million during the quarter, compared to analysts' expectations of $176.83 million. During the same period last year, the business earned $0.03 earnings per share. Varonis Systems's quarterly revenue was up 18.3% compared to the same quarter last year. 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. On average, analysts forecast that Varonis Systems will post -1.05 EPS for the current year.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors and hedge funds have recently made changes to their positions in VRNS. Fideuram Asset Management Ireland dac bought a new position in shares of Varonis Systems during the fourth quarter worth $2,784,000. Vanguard Group Inc. raised its stake in Varonis Systems by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 13,418,273 shares of the technology company's stock worth $440,119,000 after buying an additional 822,925 shares during the period. Migdal Insurance & Financial Holdings Ltd. lifted its holdings in Varonis Systems by 127.2% during the fourth quarter. Migdal Insurance & Financial Holdings Ltd. now owns 732,189 shares of the technology company's stock worth $24,016,000 after acquiring an additional 409,966 shares in the last quarter. SG Americas Securities LLC lifted its holdings in Varonis Systems by 492.1% during the fourth quarter. SG Americas Securities LLC now owns 145,014 shares of the technology company's stock worth $4,756,000 after acquiring an additional 120,523 shares in the last quarter. Finally, Senvest Management LLC grew its stake in Varonis Systems by 406.1% in the first quarter. Senvest Management LLC now owns 1,448,943 shares of the technology company's stock valued at $31,109,000 after acquiring an additional 1,162,651 shares during the period. Institutional investors own 95.65% of the company's stock.

Varonis Systems News Roundup

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

• Positive Sentiment: Strong Q2 results: Varonis reported adjusted EPS of $0.04, exceeding the $0.01 consensus estimate, while revenue rose 18.3% year over year to $180.0 million, above expectations of $176.8 million. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: SaaS momentum remained healthy: Total SaaS annual recurring revenue reached $726.0 million, up 52% year over year, while SaaS ARR excluding conversions increased 25%. Management also cited growth in new customer accounts and momentum in Atlas, Interceptor and Database Activity Monitoring. Q2 Financial Results
• Positive Sentiment: Guidance was raised well above analyst expectations: Varonis forecast third-quarter EPS of $0.02-$0.03 versus consensus for a $0.04 loss, and full-year EPS of $0.14-$0.15 versus a projected $0.11 loss. Full-year revenue guidance of $735 million-$739 million was also slightly above consensus. Analysts subsequently maintained or raised targets, including TD Cowen at $53, JPMorgan at $55, Needham at $50 and Rosenblatt at $55. Analyst Ratings and Price Targets
• Neutral Sentiment: Barclays lowered its price target from $52 to $50 but retained an “overweight” rating, while Baird raised its target from $40 to $45 and kept a “neutral” rating. These actions indicate continued confidence in the business, but also more measured expectations after the earnings release. Analyst Ratings
• Negative Sentiment: The market reaction has been unfavorable despite the headline beat. Varonis remains unprofitable, with a reported negative net margin of 19.75% and negative return on equity of 20.27%. Investors may also have expected an even stronger earnings outlook given the stock’s prior rally. Q2 Results and Stock Reaction

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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