Companies /Technology

Varonis Systems Inc

NASDAQ: VRNS Software - Infrastructure
$44.78
â–² $3.38 (+8.16%) today
Markets closed · 11:24pm ET

Q1 2026 Earnings

Reported Apr 28, 2026, 4:10pm ET · SEC source
$0.06
Beat +209.69%
EPS · est. $-0.05
$173.1M
Beat +4.61%
Revenue · est. $165.5M
+25.7%
Beating market
VRNS vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%Apr 28Apr 29report 4:10pm ETearnings+0.1%−1.1%
−6%0+6%Apr 28Apr 29earnings+0.1%−1.1%
VRNS −1.1%S&P 500 +0.1%
−6%0+6%Apr 28Apr 29report 4:10pm ETearnings+1.0%−1.1%
−6%0+6%Apr 28Apr 29earnings+1.0%−1.1%
VRNS −1.1%NASDAQ +1.0%
−12%−6%0+6%Apr 27May 6report 4:10pm ETearnings+3.1%−1.4%
−12%−6%0+6%Apr 27May 6earnings+3.1%−1.4%
VRNS −1.4%S&P 500 +3.1%
−12%−6%0+6%Apr 27May 6report 4:10pm ETearnings+5.7%−1.4%
−12%−6%0+6%Apr 27May 6earnings+5.7%−1.4%
VRNS −1.4%NASDAQ +5.7%
+7.27%
Day of report
−3.63%
Next session
+1.17%
One week
+32.32%
30 days

S&P 500 over the same 30 days: +6.60%.

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 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 $-0.0547 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

“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.”

Varonis Systems CEO, on the earnings call

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.

VRNS YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$70.0M$140.0M$136.4M$173.1MRevenue$107.4M$131.6MGross Profit$-45,218,054$-44,481,000Operating Income$-37,989,898$-36,854,000Net Income
$0$70.0M$140.0MRevenueGross ProfitOperating IncomeNet Income

VRNS Revenue by Segment

SaaS$161.1M
Term License Subscriptions$6.9M
Maintenance and Services$5.2M

Figures from SEC filings and company reports. Not investment advice.