Varonis Systems, Inc. (VRNS) AI Stock Analysis

Varonis Systems, Inc. provides software products and services designed to help enterprises manage, analyze, alert, and secure data across on-premises and cloud environments. Its product suite includes DatAdvantage, which captures and analyzes data access events across servers, storage systems, email, and cloud applications. DatAlert utilizes behavioral analytics to detect deviations signaling potential data breaches, supported by a Web-based dashboard and investigative interface. The company also offers the Data Classification Engine for identifying and tagging sensitive information, as well as DataPrivilege, a self-service portal that automates data access requests and permissions management without direct IT intervention.

Varonis generated revenue of $623.5M in FY2025, up 13.2% year over year, contributing to a 5-year revenue CAGR of 16.3% from FY2020 through FY2025. Gross margin was 79.1% in FY2025, down from 83.0% in FY2024 and 85.6% in FY2023. Operating margin was -23.5% in FY2025, while net income was -$129.3M, reflecting a net margin of -20.7%. Annual diluted earnings per share were $0.18 in FY2025. Over the trailing twelve months, revenue reached $688.1M with an operating margin of -22.6% and a net loss per share of -$1.22. In the latest quarter ended June 30, 2026, revenue increased 18.3% compared to the prior-year period.

As of June 30, 2026, Varonis held $660.1M in cash and short-term investments alongside total debt of $516.1M, yielding a net cash balance of $144.0M. Total assets stood at $1.65B against shareholders' equity of $444.5M, with a current ratio of 1.65 and a debt-to-equity ratio of 1.16. In FY2025, the company generated $147.4M in operating cash flow and invested $12.6M in capital expenditures, delivering $134.8M in free cash flow. Cash was deployed into $115.0M of share buybacks, and share count expanded 7.3% over five years.

Varonis trades at a forward P/E of 140.8x and an enterprise value to revenue multiple of 7.8x, based on an enterprise value of $5.37B. Its price-to-sales ratio is 8.1x, higher than the 2.8x median of its US-listed Technology peers, while its forward P/E exceeds the peer median of 18.8x. Over the past year, VRNS fell 19.2% compared to a 16.8% gain for the S&P 500 (SPY). Over a five-year period, the stock declined 22.3% versus an 83.0% increase for SPY, though it has gained 48.5% year-to-date through October 16, 2026.

Wall Street coverage includes 10 Strong Buy, 4 Buy, 9 Hold, and 1 Sell ratings. The mean price target of $51.07 implies upside of 4.8% from the October 16, 2026 closing price of $48.72. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $737.8M and EPS of $0.15. For the following fiscal year, 24 analysts forecast revenue of $875.3M and EPS of $0.41, representing 170.0% EPS growth. Varonis beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 27, 2026.

This page is an AI-written research summary of Varonis Systems, Inc. (VRNS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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