Varonis Systems' (VRNS) Buy Rating Reiterated at Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated its “Buy” rating on Varonis Systems and set a $55 price target, implying 23.13% upside from the prior close.
• Varonis reported strong quarterly results, with revenue up 18.3% year over year to $180.02 million and EPS of $0.04 versus the $0.01 consensus estimate. Management also issued full-year 2026 EPS guidance of $0.14–$0.15.
• Analyst sentiment remains favorable, with 17 Buy ratings and a consensus “Moderate Buy” rating alongside an average target price of $46.63; however, the company remains unprofitable on a reported basis and its shares declined after earnings.

Varonis Systems (NASDAQ:VRNS - Get Free Report)'s stock had its "buy" rating restated by research analysts at Rosenblatt Securities in a note issued to investors on Wednesday,Benzinga reports. They currently have a $55.00 target price on the technology company's stock. Rosenblatt Securities' price objective would indicate a potential upside of 23.13% from the stock's previous close.

Several other equities research analysts also recently issued reports on VRNS. Susquehanna increased their target price on Varonis Systems from $30.00 to $36.00 and gave the stock a "positive" rating in a research report on Wednesday, April 29th. Weiss Ratings upgraded Varonis Systems from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, June 30th. Truist Financial boosted their price objective on Varonis Systems from $34.00 to $52.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Needham & Company LLC increased their price objective on Varonis Systems from $36.00 to $40.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Finally, DA Davidson increased their target price on Varonis Systems from $30.00 to $37.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Seventeen investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $46.63.

Varonis Systems Stock Performance

Shares of VRNS stock opened at $44.67 on Wednesday. The stock has a market capitalization of $5.13 billion, a P/E ratio of -39.18 and a beta of 0.83. The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 1.00. The firm's 50 day moving average is $38.64 and its 200 day moving average is $30.56. Varonis Systems has a 12 month low of $19.70 and a 12 month high of $63.90.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last released its quarterly earnings data 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 net margin of 19.75% and a negative return on equity of 20.27%. The company had revenue of $180.02 million during the quarter, compared to the consensus estimate of $176.83 million. During the same period last year, the firm earned $0.03 EPS. Varonis Systems's revenue for the quarter was up 18.3% on a year-over-year basis. 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, sell-side analysts anticipate that Varonis Systems will post -1.05 earnings per share for the current year.

Hedge Funds Weigh In On Varonis Systems

Several institutional investors and hedge funds have recently made changes to their positions in VRNS. Signaturefd LLC raised its position in Varonis Systems by 47.8% in 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 period. Benjamin Edwards Inc. boosted its position in Varonis Systems by 5.5% during the second quarter. Benjamin Edwards Inc. now owns 6,692 shares of the technology company's stock valued at $340,000 after buying an additional 351 shares during the period. Amundi grew its stake in shares of Varonis Systems by 0.7% during the third quarter. Amundi now owns 52,886 shares of the technology company's stock valued at $3,212,000 after buying an additional 387 shares during the last quarter. Osaic Holdings Inc. increased its holdings in shares of Varonis Systems by 10.5% in the second quarter. Osaic Holdings Inc. now owns 4,647 shares of the technology company's stock worth $234,000 after buying an additional 440 shares during the period. Finally, 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 worth $40,000 after buying an additional 463 shares during the period. Institutional investors own 95.65% of the company's stock.

Key Headlines 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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