Varonis Systems (NASDAQ:VRNS) Updates FY 2026 Earnings Guidance

Key Points

• Varonis updated its FY2026 guidance to EPS $0.110–$0.120 (vs. consensus -$0.130) and revenue of $731–$737 million, while setting Q2 guidance at EPS $0.000–$0.010.
• The company beat the latest-quarter estimates, reporting $0.06 EPS (vs. -$0.05 est.) and revenue of $173.13 million, and the stock climbed about 1.6% to $25.44.
• Analysts have a consensus rating of “Moderate Buy” with a $41.89 price target, and executives/insiders recently purchased shares (e.g., a director bought 17,800 shares at $22.29), indicating insider confidence.

Varonis Systems (NASDAQ:VRNS - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.110-0.120 for the period, compared to the consensus earnings per share estimate of -0.130. The company issued revenue guidance of $731.0 million-$737.0 million, compared to the consensus revenue estimate of $726.9 million. Varonis Systems also updated its Q2 2026 guidance to 0.000-0.010 EPS.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Piper Sandler upgraded shares of Varonis Systems from a "neutral" rating to an "overweight" rating and raised their price objective for the stock from $45.00 to $47.00 in a report on Monday, January 5th. Morgan Stanley restated an "equal weight" rating and issued a $41.00 price objective (down from $44.00) on shares of Varonis Systems in a report on Monday, January 26th. Wedbush lowered their price objective on shares of Varonis Systems from $53.00 to $35.00 and set an "outperform" rating for the company in a report on Wednesday, February 4th. B. Riley Financial lowered their price objective on shares of Varonis Systems from $58.00 to $45.00 and set a "buy" rating for the company in a report on Wednesday, February 4th. Finally, Stephens assumed coverage on shares of Varonis Systems in a report on Tuesday, December 30th. They issued an "equal weight" rating and a $40.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $41.89.

Varonis Systems Stock Up 1.6%

Shares of VRNS stock traded up $0.39 during trading hours on Tuesday, hitting $25.44. 3,555,812 shares of the company's stock traded hands, compared to its average volume of 2,959,016. The stock's fifty day simple moving average is $23.32 and its two-hundred day simple moving average is $31.80. Varonis Systems has a 12-month low of $19.70 and a 12-month high of $63.90. The stock has a market cap of $2.92 billion, a price-to-earnings ratio of -22.32 and a beta of 0.68. 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 earnings results on Tuesday, April 28th. The technology company reported $0.06 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analyst estimates of $165.52 million. 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, analysts expect that Varonis Systems will post -0.99 EPS for the current year.

Insider Activity

In other Varonis Systems news, Director Avrohom J. Kess bought 17,800 shares of the stock in a transaction dated Friday, February 6th. The stock was purchased at an average cost of $22.29 per share, for a total transaction of $396,762.00. Following the completion of the acquisition, 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 transaction 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 stock in a transaction dated Monday, February 9th. The shares were acquired at an average price of $23.47 per share, with a total value of $69,940.60. Following the completion of the acquisition, the executive vice president directly owned 1,042,924 shares of the company's stock, 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. Over the last ninety days, insiders acquired 25,780 shares of company stock worth $579,403. Insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On Varonis Systems

A number of hedge funds have recently added to or reduced their stakes in VRNS. Benjamin Edwards Inc. grew its position in shares of Varonis Systems by 5.5% during the 2nd quarter. Benjamin Edwards Inc. now owns 6,692 shares of the technology company's stock valued at $340,000 after acquiring an additional 351 shares during the period. Amundi grew its position in shares of Varonis Systems by 0.7% during the 3rd quarter. Amundi now owns 52,886 shares of the technology company's stock valued at $3,212,000 after acquiring an additional 387 shares during the period. Osaic Holdings Inc. grew its position in shares of Varonis Systems by 10.5% during the 2nd quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company's stock valued at $234,000 after acquiring an additional 440 shares during the period. Xponance LLC lifted its stake in shares of Varonis Systems by 6.2% during the 4th quarter. Xponance LLC now owns 9,212 shares of the technology company's stock valued at $302,000 after buying an additional 539 shares in the last quarter. Finally, Focus Partners Wealth boosted its holdings in Varonis Systems by 0.5% in the 3rd quarter. Focus Partners Wealth now owns 111,210 shares of the technology company's stock worth $6,351,000 after buying an additional 546 shares during the period. 95.65% of the stock is currently owned by hedge funds and other institutional investors.

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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