These Analysts Cut Their Forecasts On Varonis Systems Following Q3 Results

Author: Avi Kapoor | October 29, 2025 11:28am

Varonis Systems Inc (NASDAQ:VRNS) reported downbeat third-quarter revenue and provided fourth-quarter guidance below expectations.

Varonis Systems reported quarterly earnings of 6 cents per share which met the analyst consensus estimate. The company reported quarterly sales of $161.577 million which missed the analyst consensus estimate of $166.149 million.

Varonis Systems said it sees fourth-quarter adjusted EPS of 2 cents to 4 cents versus market estimates of 5 cents. The company expects sales of $165.00 million to $171.00 million, versus projections of $170.129 million.

Yaki Faitelson, Varonis CEO, said, “We continued to see healthy demand for our SaaS platform, which now represents 76% of total company ARR. This adoption is driven by the automated outcomes that it provides as well as customer interest in deploying AI initiatives and securing data in the cloud. At the same time, in the final weeks of the quarter, we experienced lower renewals in the Federal vertical and in our non-Federal on-prem subscription business, which led to a shortfall relative to our expectations.”

Varonis Systems shares dipped 45.2% to trade at $34.53 on Wednesday.

These analysts made changes to their price targets on Varonis Systems following earnings announcement.

• Needham analyst Mike Cikos maintained Varonis Systems with a Buy and lowered the price target from $70 to $55.
• Barclays analyst Saket Kalia maintained the stock with an Overweight rating and lowered the price target from $70 to $50.
• Piper Sandler analyst Rob Owens maintained Varonis Systems with a Neutral and lowered the price target from $50 to $45.
• Cantor Fitzgerald analyst Jonathan Ruykhaver maintained the stock with an Overweight rating and lowered the price target from $70 to $60.
• Susquehanna analyst Shyam Patil maintained Varonis with a Positive and cut the price target from $65 to $50.
• Truist Securities analyst Junaid Siddiqui reiterated the stock with a Buy and slashed the price target from $70 to $50.
• UBS analyst Roger Boyd maintained Varonis Systems with a Buy and lowered the price target from $70 to $60.

Considering buying VRNS stock? Here’s what analysts think:

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Posted In: VRNS