Varonis Systems (NASDAQ:VRNS) Stock Price Expected to Rise, Susquehanna Analyst Says

Key Points

• Susquehanna raised its price target on Varonis to $36 and kept a "positive" rating, implying roughly a 36.9% upside from the prior close.
• Q1 earnings and revenue beat — Varonis reported $0.06 EPS vs. ($0.05) expected and $173.1M revenue (up ~26.9% YoY), and management raised FY26 and Q2 guidance, indicating accelerating top-line execution.
• Profitability remains a concern with a ~-20.7% net margin and negative ROE despite the beat, though recent insider purchases and a consensus "Moderate Buy" analyst view (average target ~$41.11) provide supportive signals.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its price target boosted by Susquehanna from $30.00 to $36.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has a "positive" rating on the technology company's stock. Susquehanna's price objective suggests a potential upside of 36.92% from the company's previous close.

Several other research firms have also commented on VRNS. Royal Bank Of Canada cut their price target on Varonis Systems from $60.00 to $41.00 and set an "outperform" rating on the stock in a research report on Monday, January 5th. Truist Financial cut their price target on Varonis Systems from $42.00 to $34.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. Cantor Fitzgerald cut their price target on Varonis Systems from $50.00 to $35.00 and set an "overweight" rating on the stock in a research report on Wednesday, February 4th. UBS Group set a $50.00 price target on Varonis Systems in a research report on Monday, January 26th. Finally, B. Riley Financial cut their price target on Varonis Systems from $58.00 to $45.00 and set a "buy" rating on the stock in a research report on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $41.11.

Varonis Systems Stock Performance

VRNS traded up $0.85 during trading on Wednesday, hitting $26.29. 746,367 shares of the stock were exchanged, compared to its average volume of 2,931,926. The firm has a market capitalization of $3.02 billion, a P/E ratio of -23.50 and a beta of 0.68. Varonis Systems has a 1-year low of $19.70 and a 1-year high of $63.90. The stock has a fifty day moving average price of $23.32 and a two-hundred day moving average price of $31.54. The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.76.

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

Insider Activity

In related news, Director John J. Gavin, Jr. bought 5,000 shares of the company's stock in a transaction dated Friday, February 6th. The shares were acquired at an average price of $22.54 per share, with a total value of $112,700.00. Following the completion of the acquisition, the director owned 273,666 shares in the company, valued at approximately $6,168,431.64. This trade represents a 1.86% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, for a total transaction of $69,940.60. Following the acquisition, the executive vice president owned 1,042,924 shares of the company's stock, valued at approximately $24,477,426.28. This trade represents a 0.29% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have purchased 25,780 shares of company stock valued at $579,403. Company insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Allworth Financial LP increased its holdings in shares of Varonis Systems by 201.3% in the third 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. Neo Ivy Capital Management purchased a new stake in shares of Varonis Systems in the third quarter valued at approximately $42,000. First Horizon Corp purchased a new stake in shares of Varonis Systems in the third quarter valued at approximately $45,000. Westside Investment Management Inc. boosted its stake in shares of Varonis Systems by 100.0% in the third quarter. Westside Investment Management Inc. now owns 844 shares of the technology company's stock valued at $49,000 after buying an additional 422 shares in the last quarter. Finally, Signaturefd LLC boosted its stake in shares of 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 buying an additional 322 shares in the last quarter. Institutional investors and hedge funds own 95.65% of the company's stock.

More Varonis Systems News

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

• Positive Sentiment: Q1 earnings and revenue beat expectations — Varonis reported $0.06 EPS vs. consensus of ($0.05) and revenue of $173.1M (up ~26.9% YoY), signaling accelerating top-line execution. Read More.
• Positive Sentiment: Raised FY26 and Q2 guidance above Street estimates — management set FY26 EPS $0.110–0.120 and Q2 EPS $0.000–0.010, with revenue ranges above consensus, implying improving profitability trajectory. Read More.
• Positive Sentiment: Analyst upgrade / price-target increase — Needham raised its price target to $36 and reiterated a Buy rating, signaling institutional confidence and ~40% upside vs. the prior reference price. Read More.
• Positive Sentiment: Strong ARR growth and product news — SaaS ARR (ex-conversions) grew ~29% YoY and total SaaS ARR jumped materially; Varonis launched "Varonis Atlas" (AI-driven product tied to AllTrue.ai acquisition), supporting long-term SaaS monetization. Read More.
• Neutral Sentiment: Earnings call transcript available — investors can review management commentary and Q&A for color on customer demand, churn, and AI roadmap. Read More.
• Neutral Sentiment: Analyst and media coverage — several outlets (Zacks, TipRanks, Yahoo) published analyses comparing metrics to estimates; useful for drilling into subscription metrics and margin trajectory. Read More.
• Negative Sentiment: Profitability remains a concern — despite the beat, Varonis still reported a negative net margin (~-20.7%) and negative return on equity, reminding investors that GAAP profitability and cash conversion remain works in progress. Read More.

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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