Varonis Systems (NASDAQ:VRNS) Updates Q3 2026 Earnings Guidance

Varonis Systems (NASDAQ:VRNS) updated its third quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.020-0.030 for the period, compared to the consensus estimate of -0.040. The company issued revenue guidance of $185.0 million-$188.0 million, compared to the consensus revenue estimate of $186.2 million. Varonis Systems also updated its FY 2026 guidance to 0.140-0.150 EPS.

Varonis Systems Trading Down 8.0%

Shares of NASDAQ:VRNS traded down $3.58 during trading on Wednesday, reaching $41.09. The stock had a trading volume of 1,729,217 shares, compared to its average volume of 2,680,985. Varonis Systems has a fifty-two week low of $19.70 and a fifty-two week high of $63.90. The business has a fifty day moving average price of $38.64 and a 200-day moving average price of $30.56. The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 1.00. The stock has a market cap of $4.72 billion, a P/E ratio of -36.00 and a beta of 0.83.

Varonis Systems (NASDAQ:VRNS) last released its quarterly earnings data on Tuesday, July 28th. The technology company reported $0.04 EPS for the quarter, beating the consensus estimate of $0.01 by $0.03. Varonis Systems had a negative return on equity of 20.27% and a negative net margin of 19.75%.The company had revenue of $180.02 million for the quarter, compared to analyst estimates of $176.83 million. During the same period last year, the company posted $0.03 earnings per share. The firm’s revenue was up 18.3% compared to the same quarter last year. 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. As a group, analysts anticipate that Varonis Systems will post -1.05 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on VRNS shares. B. Riley Financial increased their target price on shares of Varonis Systems from $45.00 to $55.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Robert W. Baird boosted their target price on Varonis Systems from $40.00 to $45.00 and gave the stock a “neutral” rating in a report on Wednesday. Wells Fargo & Company increased their price target on Varonis Systems from $35.00 to $50.00 and gave the company an “overweight” rating in a research note on Monday, July 20th. Stephens raised Varonis Systems from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $33.00 to $45.00 in a research note on Wednesday, June 24th. Finally, Weiss Ratings upgraded shares of Varonis Systems from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, June 30th. Eighteen equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $46.68.

Varonis Systems News Summary

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

• Positive Sentiment: Strong Q2 results: Varonis reported adjusted EPS of $0.04, exceeding the $0.01 consensus estimate, while revenue rose 18.3% year over year to $180.0 million, above expectations of $176.8 million. Varonis Announces Second Quarter 2026 Financial Results
• Positive Sentiment: SaaS momentum remained healthy: Total SaaS annual recurring revenue reached $726.0 million, up 52% year over year, while SaaS ARR excluding conversions increased 25%. Management also cited growth in new customer accounts and momentum in Atlas, Interceptor and Database Activity Monitoring. Q2 Financial Results
• Positive Sentiment: Guidance was raised well above analyst expectations: Varonis forecast third-quarter EPS of $0.02-$0.03 versus consensus for a $0.04 loss, and full-year EPS of $0.14-$0.15 versus a projected $0.11 loss. Full-year revenue guidance of $735 million-$739 million was also slightly above consensus. Analysts subsequently maintained or raised targets, including TD Cowen at $53, JPMorgan at $55, Needham at $50 and Rosenblatt at $55. Analyst Ratings and Price Targets
• Neutral Sentiment: Barclays lowered its price target from $52 to $50 but retained an “overweight” rating, while Baird raised its target from $40 to $45 and kept a “neutral” rating. These actions indicate continued confidence in the business, but also more measured expectations after the earnings release. Analyst Ratings
• Negative Sentiment: The market reaction has been unfavorable despite the headline beat. Varonis remains unprofitable, with a reported negative net margin of 19.75% and negative return on equity of 20.27%. Investors may also have expected an even stronger earnings outlook given the stock’s prior rally. Q2 Results and Stock Reaction

Institutional Investors Weigh In On Varonis Systems

A number of hedge funds have recently bought and sold shares of VRNS. First Trust Advisors LP lifted its holdings in shares of Varonis Systems by 40.6% during the fourth quarter. First Trust Advisors LP now owns 4,427,245 shares of the technology company’s stock valued at $145,214,000 after acquiring an additional 1,279,002 shares during the period. RGM Capital LLC increased its holdings in shares of Varonis Systems by 17.1% during the fourth quarter. RGM Capital LLC now owns 3,160,093 shares of the technology company’s stock worth $103,651,000 after buying an additional 460,580 shares in the last quarter. Cadian Capital Management LP raised its stake in shares of Varonis Systems by 25.7% in the fourth quarter. Cadian Capital Management LP now owns 2,282,581 shares of the technology company’s stock valued at $74,869,000 after acquiring an additional 466,481 shares during the last quarter. Soma Equity Partners LP raised its position in Varonis Systems by 4.8% in the 4th quarter. Soma Equity Partners LP now owns 2,255,117 shares of the technology company’s stock valued at $73,968,000 after purchasing an additional 102,498 shares during the last quarter. Finally, American Capital Management Inc. boosted its stake in Varonis Systems by 10.0% in the fourth quarter. American Capital Management Inc. now owns 1,509,039 shares of the technology company’s stock worth $49,496,000 after purchasing an additional 137,233 shares in the last quarter. 95.65% of the stock is currently owned by institutional investors.

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.