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Varonis Systems

VRNS Q1 2026 Earnings

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

Q1 26 EPS

$0.06

BEAT +209.69%

Est. $-0.05

Q1 26 Revenue

$173.1M

BEAT +4.61%

Est. $165.5M

vs S&P Since Q1 26

+26.9%

BEATING MARKET

VRNS +30.1% vs S&P +3.2%

Market Reaction

Did VRNS Beat Earnings? Q1 2026 Results

Varonis Systems delivered a strong start to fiscal 2026, beating Wall Street expectations on both the top and bottom lines as its accelerating shift to SaaS continued to redefine its revenue mix. The data security company posted Q1 revenue of $173.13… Read more Varonis Systems delivered a strong start to fiscal 2026, beating Wall Street expectations on both the top and bottom lines as its accelerating shift to SaaS continued to redefine its revenue mix. The data security company posted Q1 revenue of $173.13 million, up 26.9% year-over-year and ahead of the $165.50 million consensus estimate by 4.61%, while non-GAAP EPS of $0.06 exceeded the $-0.05 consensus by 209.69%. The primary engine behind the outperformance was a surge in SaaS revenue to $161.06 million, up 82% from a year ago, as customers continued converting from legacy term licenses to the cloud platform, pushing SaaS ARR to $683.20 million, a 69% year-over-year gain. The results arrive against a backdrop of lingering legal scrutiny tied to prior-quarter guidance cuts, making the raised full-year outlook, including revenue of $731 million to $737 million and SaaS ARR of $814 million to $845 million, a meaningful signal of renewed management confidence. Several analysts raised their price targets following the report.

Key Takeaways

  • • SaaS ARR excluding conversions grew 29% year-over-year
  • • Accelerating new logo acquisition
  • • Strong expansion with existing customers
  • • SaaS revenue surged 82% year-over-year to $161.1 million
  • • Customer conversions from legacy term-license to SaaS platform

VRNS Forward Guidance & Outlook

For Q2 2026, Varonis expects SaaS ARR growth of 24%-25% YoY excluding conversions, revenues of $175.0M-$178.0M (15%-17% YoY growth), non-GAAP operating loss of ($1.0M) to breakeven, and non-GAAP EPS of $0.00-$0.01 on 131.1M diluted shares. For full year 2026, the company raised guidance: SaaS ARR of $814.0M-$845.0M (27%-32% growth), SaaS ARR growth excluding conversions of 20%-21%, revenues of $731.0M-$737.0M (17%-18% growth), non-GAAP operating income of $7.0M-$9.0M, non-GAAP EPS of $0.11-$0.12 on 132.1M diluted shares, and free cash flow of $100.0M-$105.0M.

24/7 Wall St

VRNS YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

VRNS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Our Q1 results reflect strong execution across our business, and SaaS ARR, excluding conversions increased 29%. AI is forcing companies to prioritize data and AI security, and Varonis is uniquely positioned to help customers put the right guardrails in place so they can achieve automated outcomes and safely deploy AI with minimal effort. We believe we are well-positioned to capitalize on the favorable tailwinds in our business and this significant AI market opportunity.”

— Yaki Faitelson, Q1 2026 Earnings Press Release

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