Varonis Systems, Inc. (NASDAQ:VRNS) is a company that specializes in data security and analytics. It provides solutions to protect enterprise data from cyber threats and insider threats. Varonis is known for its innovative software that helps organizations manage and secure their data. The company competes with other cybersecurity firms like Palo Alto Networks and CrowdStrike.
On February 4, 2026, D.A. Davidson set a price target of $30 for Varonis, suggesting a potential upside of 26.74% from its current trading price of $23.67. This optimistic outlook is supported by Varonis' strong financial performance in the fourth quarter of 2025. The company reported earnings per share (EPS) of 8 cents, surpassing the Zacks Consensus Estimate by 166.7%.
Varonis' revenues for the fourth quarter reached $173.37 million, exceeding the Zacks Consensus Estimate by 2.87%. This represents a significant increase from the $158.5 million reported in the same quarter last year. A key factor in this growth was the substantial increase in SaaS revenues, which surged by 97.1% year over year, accounting for more than 82% of the total quarterly revenues.
The company's total annual recurring revenue (ARR) also saw a notable increase, reaching $745.4 million, up 16.1% from the previous year. This growth was primarily driven by strong SaaS ARR growth. Varonis' success can be attributed to the rising demand for automated data security solutions and the expanding adoption of artificial intelligence.
Despite the positive financial results, VRNS stock is currently priced at $23.67, reflecting a decrease of 10.78% with a change of $2.86. The stock has fluctuated between a low of $20.06 and a high of $24.50 today. Over the past year, VRNS has reached a high of $63.90 and a low of $20.06. The company's market capitalization stands at approximately $2.79 billion, with a trading volume of 19,810,692 shares on the NASDAQ.
