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

Key Points

• Analyst optimism: Wedbush raised its target for Varonis to $37 (an implied ~32.8% upside) and multiple firms have recently lifted ratings and price targets, leaving a consensus target of $41.84 and a "Moderate Buy" average rating (15 Buys, 6 Holds, 1 Sell).
• Earnings beat and stronger guidance: Varonis reported Q1 revenue of $173.1M (+26.9% YoY) and EPS of $0.06, topped estimates, and issued raised guidance — Q2 EPS $0.00–$0.01 and FY2026 EPS $0.110–$0.120 — while signaling accelerated SaaS ARR growth (guidance $814M–$845M; current SaaS ARR $683.2M) and new AI-driven product expansion.
• Profitability remains a concern: Despite the beat and upgraded outlook, Varonis still shows a negative net margin (~-20.7%) and negative ROE (~-22.9%), and analysts on average expect a negative full-year EPS, underscoring that sustained profitability is not yet proven.

Varonis Systems (NASDAQ:VRNS - Get Free Report) had its target price upped by stock analysts at Wedbush from $35.00 to $37.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the technology company's stock. Wedbush's target price indicates a potential upside of 32.78% from the stock's previous close.

Several other equities research analysts also recently weighed in on the stock. DA Davidson raised shares of Varonis Systems from a "neutral" rating to a "buy" rating and upped their target price for the stock from $25.00 to $30.00 in a research note on Thursday, February 5th. UBS Group set a $50.00 target price on shares of Varonis Systems in a research note on Monday, January 26th. B. Riley Financial cut their target price on shares of Varonis Systems from $58.00 to $45.00 and set a "buy" rating on the stock in a research note on Wednesday, February 4th. Piper Sandler raised shares of Varonis Systems from a "neutral" rating to an "overweight" rating and increased their price objective for the company from $45.00 to $47.00 in a research report on Monday, January 5th. Finally, Susquehanna increased their price objective on shares of Varonis Systems from $30.00 to $36.00 and gave the company a "positive" rating in a research report on Wednesday. Fifteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $41.84.

Varonis Systems Trading Up 9.5%

Shares of VRNS stock traded up $2.43 during trading hours on Wednesday, hitting $27.87. The company had a trading volume of 3,099,903 shares, compared to its average volume of 2,956,626. The company's fifty day moving average is $23.32 and its 200 day moving average is $31.54. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.97 and a quick ratio of 1.97. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90. The stock has a market capitalization of $3.20 billion, a PE ratio of -24.35 and a beta of 0.68.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The technology company reported $0.06 EPS for the quarter, topping the consensus estimate 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 firm had revenue of $173.13 million for the quarter, compared to analyst estimates of $165.52 million. Varonis Systems's quarterly 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. Research analysts expect that Varonis Systems will post -0.99 earnings per share for the current fiscal year.

Insider Activity at Varonis Systems

In related news, EVP David Bass bought 2,980 shares of the company's stock in a transaction that occurred on Monday, February 9th. The shares were purchased 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 of the company's stock, valued at approximately $24,477,426.28. This represents a 0.29% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director John J. Gavin, Jr. bought 5,000 shares of the company's stock in a transaction that occurred on Friday, February 6th. The stock was bought at an average cost of $22.54 per share, for a total transaction of $112,700.00. Following the completion of the transaction, the director directly owned 273,666 shares in the company, valued at approximately $6,168,431.64. The trade was a 1.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased 25,780 shares of company stock valued at $579,403 in the last ninety days. Insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of 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 purchasing an additional 322 shares during the last quarter. Empowered Funds LLC purchased a new position in Varonis Systems during the 4th quarter worth $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 purchasing an additional 463 shares during the last quarter. Neo Ivy Capital Management purchased a new position in Varonis Systems during the 3rd quarter worth $42,000. Finally, First Horizon Corp purchased a new position in Varonis Systems during the 3rd quarter worth $45,000. 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: Q1 beats — Varonis reported Q1 revenue of $173.1M (+26.9% YoY) and EPS of $0.06, beating consensus revenue and EPS estimates; management emphasized SaaS growth. Press Release
• Positive Sentiment: Raised guidance — Varonis updated Q2 EPS guidance to $0.00–$0.01 (vs. consensus -$0.04) and FY2026 EPS to $0.110–$0.120 (vs. consensus -$0.13); revenue outlook also topped Street expectations, signaling improved profitability trajectory. Earnings Release
• Positive Sentiment: SaaS ARR acceleration — Management signaled full-year total SaaS ARR of $814M–$845M (up materially vs. prior expectations) and disclosed total SaaS ARR of $683.2M; the company also launched Varonis Atlas after the AllTrue.ai acquisition, highlighting AI-driven product expansion. Seeking Alpha
• Positive Sentiment: Analyst upgrades and price-target raises — Multiple firms lifted targets and ratings after the print: Susquehanna to $36 (positive), Needham to $36 (buy) and Stephens to $33 (equal weight), reflecting renewed analyst confidence in growth and margin improvement. Analyst Notes
• Neutral Sentiment: Conference call and transcript available — The company provided detailed commentary in its Q1 call and slide deck for investors to assess ARR comps, cloud conversion cadence and margin path. Call Slides
• Negative Sentiment: Profitability still a concern — Despite beats, Varonis reports negative net margin (~-20.7%) and negative ROE (~-22.9%); analysts still project a negative full-year EPS on average, so sustained profitability is not yet proven. Zacks

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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