Wedbush Issues Positive Outlook for Varonis Systems Earnings

Key Points

• Wedbush has increased its Q3 2025 earnings per share estimate for Varonis Systems to ($0.18), up from the previous estimate of ($0.21), and maintains an "Outperform" rating with a price target of $65.00.
• Several analysts have raised their price objectives for Varonis Systems, with Barclays increasing theirs from $60.00 to $62.00, indicating a growing optimism in the stock's performance.
• Varonis reported a 16.7% year-over-year revenue growth with $152.16 million during the last quarter, significantly exceeding analyst estimates of $147.80 million.

Varonis Systems, Inc. (NASDAQ:VRNS - Free Report) - Equities research analysts at Wedbush raised their Q3 2025 earnings per share estimates for shares of Varonis Systems in a research note issued to investors on Wednesday, July 30th. Wedbush analyst D. Ives now expects that the technology company will post earnings per share of ($0.18) for the quarter, up from their prior estimate of ($0.21). Wedbush has a "Outperform" rating and a $65.00 price objective on the stock. The consensus estimate for Varonis Systems' current full-year earnings is ($0.83) per share. Wedbush also issued estimates for Varonis Systems' Q4 2025 earnings at ($0.19) EPS, Q1 2026 earnings at ($0.26) EPS, Q2 2026 earnings at ($0.20) EPS, Q3 2026 earnings at ($0.12) EPS, Q4 2026 earnings at ($0.12) EPS and FY2026 earnings at ($0.72) EPS.

Several other research firms also recently issued reports on VRNS. Wall Street Zen raised Varonis Systems from a "sell" rating to a "hold" rating in a report on Monday, April 28th. UBS Group raised their target price on shares of Varonis Systems from $60.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 30th. DA Davidson lifted their price objective on shares of Varonis Systems from $47.00 to $50.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. Royal Bank Of Canada upped their target price on Varonis Systems from $58.00 to $64.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Finally, Robert W. Baird upped their target price on shares of Varonis Systems from $58.00 to $63.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Five investment analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.31.

Varonis Systems Stock Down 4.0%

Shares of VRNS traded down $2.24 during trading hours on Monday, reaching $53.48. The company's stock had a trading volume of 582,345 shares, compared to its average volume of 1,562,129. The company has a 50 day moving average of $51.27 and a two-hundred day moving average of $45.73. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 1.32. The firm has a market cap of $5.99 billion, a price-to-earnings ratio of -58.15 and a beta of 0.71. Varonis Systems has a 1-year low of $36.53 and a 1-year high of $60.58.

Varonis Systems (NASDAQ:VRNS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The technology company reported $0.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.02. The company had revenue of $152.16 million for the quarter, compared to the consensus estimate of $147.80 million. Varonis Systems had a negative net margin of 17.30% and a negative return on equity of 23.06%. The company's revenue for the quarter was up 16.7% on a year-over-year basis. During the same period last year, the firm posted $0.05 EPS.

Hedge Funds Weigh In On Varonis Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brown Advisory Inc. acquired a new position in shares of Varonis Systems in the first quarter valued at $346,000. Mirae Asset Global Investments Co. Ltd. raised its holdings in Varonis Systems by 18.5% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 8,465 shares of the technology company's stock valued at $352,000 after buying an additional 1,323 shares during the last quarter. Stephens Investment Management Group LLC lifted its stake in shares of Varonis Systems by 14.7% in the first quarter. Stephens Investment Management Group LLC now owns 1,604,558 shares of the technology company's stock worth $64,904,000 after acquiring an additional 205,781 shares during the period. Penserra Capital Management LLC boosted its position in shares of Varonis Systems by 52.2% during the 1st quarter. Penserra Capital Management LLC now owns 1,542,071 shares of the technology company's stock valued at $62,376,000 after purchasing an additional 529,182 shares in the last quarter. Finally, Legacy Advisors LLC lifted its holdings in shares of Varonis Systems by 164.5% in the 1st quarter. Legacy Advisors LLC now owns 21,090 shares of the technology company's stock worth $853,000 after purchasing an additional 13,115 shares in the last quarter. 95.65% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Varonis Systems

In related news, Director Den Bosch Fred Van sold 6,000 shares of the business's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $50.00, for a total transaction of $300,000.00. Following the completion of the transaction, the director owned 131,666 shares of the company's stock, valued at approximately $6,583,300. The trade was a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Guy Melamed sold 51,889 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $55.10, for a total value of $2,859,083.90. Following the completion of the transaction, the chief financial officer directly owned 470,602 shares in the company, valued at $25,930,170.20. The trade was a 9.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 60,889 shares of company stock worth $3,324,324. 2.30% of the stock is currently owned by company insiders.

About Varonis Systems

Varonis Systems, Inc provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property.