Varonis Systems (NASDAQ:VRNS) Issues Q1 2026 Earnings Guidance

05 Feb 2026, 18:10 by Mitch Edgeman · The Markets Daily

Varonis Systems (NASDAQ:VRNS – Get Free Report) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of -0.060–0.050 for the period, compared to the consensus estimate of -0.060. The company issued revenue guidance of $164.0 million-$166.0 million, compared to the consensus revenue estimate of $163.9 million. Varonis Systems also updated its FY 2026 guidance to 0.060-0.100 EPS.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. 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 on the stock. Susquehanna reduced their price target on Varonis Systems from $65.00 to $50.00 and set a “positive” rating on the stock in a research report on Wednesday, October 29th. Wedbush decreased their target price on shares of Varonis Systems from $53.00 to $35.00 and set an “outperform” rating on the stock in a report on Wednesday. JPMorgan Chase & Co. lowered their price target on Varonis Systems from $50.00 to $38.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, Truist Financial lowered their price objective on shares of Varonis Systems from $42.00 to $34.00 and set a “buy” rating for the company in a research report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $45.25.

Get Our Latest Stock Analysis on VRNS

Varonis Systems Stock Down 5.5%

Shares of NASDAQ:VRNS traded down $1.31 during mid-day trading on Thursday, hitting $22.36. 3,918,893 shares of the company traded hands, compared to its average volume of 3,470,242. The stock has a 50-day moving average price of $32.82 and a two-hundred day moving average price of $45.61. The stock has a market cap of $2.64 billion, a P/E ratio of -19.74 and a beta of 0.58. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.75. Varonis Systems has a 12-month low of $20.06 and a 12-month high of $63.90.

Varonis Systems (NASDAQ:VRNS – Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The technology company reported $0.08 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.05. Varonis Systems had a negative net margin of 20.74% and a negative return on equity of 25.05%. The company had revenue of $173.37 million for the quarter, compared to analysts’ expectations of $168.66 million. During the same quarter in the previous year, the firm posted $0.18 EPS. Varonis Systems’s revenue was up 9.4% on a year-over-year basis. Varonis Systems has set its FY 2026 guidance at 0.060-0.100 EPS and its Q1 2026 guidance at -0.060–0.050 EPS. On average, equities research analysts forecast that Varonis Systems will post -0.83 earnings per share for the current year.

More Varonis Systems News

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

Positive Sentiment: Beat on Q4 and SaaS momentum — Varonis reported Q4 revenue and EPS above estimates, strong ARR and SaaS ARR growth, and improved cash flow metrics, which support longer-term SaaS monetization trends. Varonis Announces Fourth Quarter 2025 and Full-Year 2025 Financial Results
Positive Sentiment: Strategic AI acquisition — Varonis announced it will acquire AllTrue.ai (AI TRiSM) to add AI trust, risk and security capabilities to its data-security stack, which is strategically aligned with enterprise demand for AI governance. Varonis to Acquire AllTrue-ai to Manage and Secure AI Across the Enterprise
Positive Sentiment: Analyst upgrade — DA Davidson upgraded VRNS from Neutral to Buy with a $30 price target, signaling at least one shop views the pullback as a buying opportunity given SaaS trends.
Neutral Sentiment: Mixed guidance — Management raised FY‑2026 revenue and issued FY EPS guidance that is positive versus prior consensus, but Q1 EPS guidance is slightly negative (in line with expectations). The guidance is mixed: supportive for the full year, while near-term profitability remains pressured.
Negative Sentiment: Large cluster of securities‑fraud class actions and law‑firm solicitations — Multiple firms have filed or announced class actions alleging misstatements around the SaaS transition (class period cited Feb 4, 2025–Oct 28, 2025). Litigation risk and the wave of lead‑plaintiff solicitations amplify uncertainty and sell‑side pressure. SHAREHOLDER ALERT Bernstein Liebhard LLP Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Varonis Systems, Inc. (NASDAQ: VRNS)
Negative Sentiment: Broad analyst price‑target cuts — Several major firms (JPMorgan, Cantor, Citigroup, Wedbush, B. Riley, Needham, Truist, etc.) lowered price targets after the release, signaling reduced near‑term expectations and contributing to downward pressure on the stock.
Negative Sentiment: Options and short‑term bearish bets — Unusually large put option activity was reported (several thousand puts traded), indicating elevated near‑term bearish positioning by traders.

Institutional Investors Weigh In On Varonis Systems

A number of institutional investors have recently bought and sold shares of the business. Harvest Fund Management Co. Ltd bought a new stake in shares of Varonis Systems in the third quarter valued at about $68,000. EverSource Wealth Advisors LLC boosted its stake in shares of Varonis Systems by 344.3% during the second quarter. EverSource Wealth Advisors LLC now owns 1,213 shares of the technology company’s stock valued at $62,000 after purchasing an additional 940 shares in the last quarter. Advisory Services Network LLC purchased a new stake in Varonis Systems during the third quarter worth $75,000. Twin Tree Management LP bought a new stake in Varonis Systems during the 3rd quarter valued at $211,000. Finally, Jain Global LLC purchased a new position in shares of Varonis Systems in the 3rd quarter valued at $224,000. Hedge funds and other institutional investors own 95.65% of the company’s stock.

Varonis Systems Company Profile

(Get Free Report)

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.