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Varonis Systems

Varonis Systems (VRNS) Q2 2026 Earnings

Reported Jul 28, 2026 at 4:10 PM ET · SEC Source

Q2 26 EPS

$0.04

BEAT +506.06%

Est. $0.01

Q2 26 Revenue

$180.0M

BEAT +1.74%

Est. $176.9M

vs S&P Since Q2 26

-12.8%

TRAILING MARKET

VRNS -6.7% vs S&P +6.0%

Market Reaction

Did VRNS Beat Earnings? Q2 2026 Results

Varonis Systems delivered a strong second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines and extending its streak of consensus EPS beats to four consecutive quarters. The data security company posted non-GA… Read more Varonis Systems delivered a strong second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines and extending its streak of consensus EPS beats to four consecutive quarters. The data security company posted non-GAAP earnings of $0.04 per diluted share, well ahead of the $0.01 consensus estimate, while revenue grew 18.3% year-over-year to $180.02 million, edging past the $176.94 million analyst forecast. The clearest engine behind the outperformance was an accelerating SaaS transition, with SaaS revenue climbing to $171.73 million from $105.89 million a year ago and SaaS ARR reaching $726 million, up 52% year-over-year. Management raised its full-year 2026 revenue outlook to $735 million to $739 million, implying 18-19% growth, and lifted SaaS ARR guidance to $819 million to $850 million, with the ARR-excluding-conversions midpoint raised by $5 million versus prior guidance. Analysts have responded by lifting price targets sharply, reflecting growing confidence that the company's path to $1 billion in ARR remains firmly on track.

Key Takeaways

  • • SaaS ARR excluding conversions grew 25% year-over-year
  • • SaaS ARR from new logos growing more than 20%
  • • Organizations prioritizing data and AI security driving demand
  • • Healthy new logo momentum driven by the need to secure AI and data powering it

VRNS Forward Guidance & Outlook

For Q3 2026, the company expects SaaS ARR year-over-year growth of 22% to 23% excluding conversions, revenues of $185.0 million to $188.0 million (14-16% YoY growth), non-GAAP operating income of $2.5 million to $3.5 million, and non-GAAP EPS of $0.02 to $0.03 on 131.1 million diluted shares. For full year 2026, the company raised guidance to SaaS ARR of $819.0 million to $850.0 million (28-33% YoY growth), SaaS ARR growth of 20-21% excluding conversions, revenues of $735.0 million to $739.0 million (18-19% YoY growth), non-GAAP operating income of $11.0 million to $13.0 million, non-GAAP EPS of $0.14 to $0.15 on 131.5 million diluted shares, and free cash flow of $105.0 million to $110.0 million. The SaaS ARR excluding conversions guidance midpoint was raised by $5 million versus last quarter.

24/7 Wall St

VRNS YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

VRNS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q2 26

“Our Q2 results were highlighted by SaaS ARR excluding conversions growth of 25%, SaaS ARR from new logos growing more than 20% and increasing momentum from our newer products, including Atlas, Interceptor, and Database Activity Monitoring. Organizations are prioritizing data and AI security, and we are uniquely positioned to help customers secure sensitive data, govern AI and automate risk reduction.”

— Yaki Faitelson, Q2 2026 Earnings Press Release

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