Varonis Systems, Inc. provides software products and services that continuously discover and classify critical data, remediate exposures, and detect advanced threats using AI-powered technology. It operates in North America, Europe, APAC, and the rest of the world. The company offers the Varonis Data Security Platform, a Software-as-a-Service solution that includes data security posture management, data access intelligence, data discovery and classification, a discovery policy library, least privilege automation, data activity monitoring, data detection and response, and user and entity behavior analytics. It also provides protection packages for Microsoft 365, Windows and NAS, hybrid, and cloud environments, as well as database and email security capabilities and on-premises subscription products. Varonis serves the financial services, public, healthcare, industrial, insurance, energy and utilities, technology, construction and engineering, education, and consumer and retail industries. The company was incorporated in 2004 and is headquartered in Miami, Florida.
Varonis Systems Launches Data Lifecycle Management Capability
Varonis Systems, Inc. launched Varonis Data Lifecycle Management, a new capability that automatically identifies and remediates redundant, obsolete, and trivial data across enterprise environments using its existing Data Security Platform. The launch ties data cleanup directly to sensitivity, access, and activity context, aiming to reduce storage waste, improve AI output quality, and help organizations address compliance exposures from scattered sensitive information. The DLM tool stacks on top of Varonis Atlas, the AI security platform that went generally available in March 2026, which targets discovery, posture management, and runtime protection for AI workloads. Together, Atlas and DLM broaden Varonis' role from guarding unstructured data to governing how that data is stored, used, cleaned up, and exposed across Snowflake, Claude, Cursor, and other cloud and AI partnerships. Varonis Systems' narrative projects $1.1 billion revenue and $120.7 million earnings by 2029, yielding a $50.68 fair value, an 8% upside to its current price, while the most pessimistic analysts were already modeling about US$1.0 billion of 2029 revenue.
Varonis Systems shares jumped 13% Wednesday afternoon following a Bloomberg report that Proofpoint, backed by private equity firm Thoma Bravo, is in talks to acquire the cybersecurity company. People familiar with the matter said a transaction could be announced in the coming weeks, though no final decision has been made and talks could still fall apart or another bidder could emerge. Before the report surfaced, Varonis had a market value of approximately $4.7 billion. Representatives for Thoma Bravo, Proofpoint and Varonis did not immediately respond to requests for comment, according to the Bloomberg report. Varonis provides cybersecurity solutions that help companies monitor and control access to sensitive information across cloud systems.
CrowdStrike will announce earnings results this Wednesday after market close. The market expects revenue to grow 23.2% year over year, an improvement from the 21.3% increase recorded in the same quarter last year. Analysts have generally reconfirmed their estimates over the last 30 days, and the company rarely misses Wall Street's revenue expectations. Peers Varonis Systems and Qualys have already reported Q2 results, with Varonis beating revenue estimates by 1.8% and Qualys topping estimates by 2%. CrowdStrike shares are up 5.7% over the last month, heading into earnings with an average analyst price target of $210.54 compared to the current share price of $190.30.
Varonis Q2 earnings beat estimates, revenue rises to $180 million
Varonis Systems reported second-quarter 2026 non-GAAP earnings of 4 cents per share, beating the Zacks Consensus Estimate of 1 cent. Revenues reached $180 million, up from $152.2 million a year earlier and surpassing the consensus by 1.7%. The performance was driven by continued SaaS momentum, with SaaS revenues jumping to $171.7 million from $105.9 million, while legacy term license and maintenance revenues declined as customers migrated. The company returned to non-GAAP operating profit of $3.7 million, compared with a loss of $1.9 million in the prior-year quarter, and raised its full-year revenue outlook to between $735 million and $739 million, implying 18-19% year-over-year growth.
Varonis Named a Gartner Peer Insights Customers’ Choice for Third Consecutive Year
Varonis Systems has been recognized as a Gartner Peer Insights Customers’ Choice for Data Security Posture Management for the third consecutive year, making it the only company to earn this distinction three years in a row in the DSPM category. The recognition is based on customer reviews, with 97% of users saying they would recommend Varonis, and the company receiving a 4.7 out of 5 rating for Product Capabilities, Sales Expertise, and Deployment Experience, as well as a 4.9 out of 5 rating for Support Experience. Customers highlighted Varonis’ breadth of coverage, ease of value realization, and quality of support. Chief Marketing Officer Rob Sobers stated that data security is critical as organizations adopt AI, and Varonis helps customers secure and govern the data that fuels AI initiatives.
Cybersecurity & Digital Trust › Data Security Posture & DLP ▲Competition
VRNS · Demand · Positive Varonis is recognized as Gartner Peer Insights Customers' Choice for third consecutive year, with 97% recommendation rate and high ratings, indicating strong customer satisfaction and likely driving future demand.
Varonis Systems Stock Looks Overvalued With Shares Near Fair Value
Varonis Systems stock appears overvalued on most metrics, with a Discounted Cash Flow estimate indicating shares are roughly in line with intrinsic value. The DCF model points to an estimated intrinsic value of about $44 per share, approximately 5.6% above the current price, based on trailing free cash flow of $123.7 million and assumed growth. On a price-to-sales basis, Varonis trades at 7.3 times, above the software industry average of 3.5 times and a peer group average of 5.2 times, while the implied fair P/S ratio is about 5.3 times. The company scores 1 out of 6 for value on Simply Wall St's checks, and an Altman Z-Score in the distress zone highlights balance sheet risk. Interest from private equity buyers and AI-driven data security demand support growth expectations, but financial efficiency concerns may cap what investors are willing to pay.
VRNS · Capital · Negative DCF model shows shares near fair value, high P/S ratio vs peers, and Altman Z-Score in distress zone, indicating overvaluation and financial risk.
Cybersecurity stocks reported satisfactory first-quarter results, with aggregate revenues beating analyst consensus estimates by 1.6% and next-quarter revenue guidance in line. Okta posted revenue of $765 million, up 11.2% year-over-year and exceeding expectations by 1.7%, while Palo Alto Networks delivered the fastest revenue growth among peers at 31.1% to $3.00 billion, beating estimates by 2%. SentinelOne was the weakest performer, with revenue of $276.7 million, up 20.8% year-over-year but in line with estimates, and its billings and guidance missed expectations. Zscaler reported revenue of $850.5 million, up 25.4% year-over-year and topping estimates by 1.8%, and Varonis Systems posted revenue of $173.1 million, up 26.9% year-over-year and beating estimates by 4.6%, the biggest beat among the group. Since reporting, cybersecurity stocks have averaged a 16.7% share price increase.
Varonis Systems Climbs 7% on Report of Potential Sale
Varonis Systems shares rose 7.09 percent on Tuesday to close at $35.03 after Bloomberg reported the company is exploring a potential sale. The data security firm is reviewing options with financial advisers following takeover interest from financial buyers including Blackstone, Thoma Bravo, and Vista Equity Partners. The report cited rapidly growing demand for data solutions and cybersecurity products. Separately, Varonis last month integrated its security platform with Anthropic's Claude AI to help organizations monitor AI usage and detect misuse.
Cybersecurity & Digital Trust › Data Security Posture & DLP ▲Capital
VRNS · Capital · Positive Varonis is exploring a potential sale after takeover interest from financial buyers, driving the stock up 7%.
BX · Capital · Positive Blackstone is named as a potential acquirer of Varonis, which could be a positive deal for the buyer if it fits its strategy.
Thoma Bravo · Capital · Positive Thoma Bravo is named as a potential acquirer of Varonis, which could be a positive deal for the buyer if it fits its strategy.
Vista Equity Partners · Capital · Positive Vista Equity Partners is named as a potential acquirer of Varonis, which could be a positive deal for the buyer if it fits its strategy.
StockStory Picks Vita Coco as Top Russell 2000 Buy, Flags Varonis and ePlus as Sells
StockStory highlights Vita Coco as a Russell 2000 stock with exciting potential while advising caution on Varonis Systems and ePlus. Vita Coco, with a market cap of $4.49 billion, saw unit sales surge over the past two years and delivered annual EPS growth of 52.4% over three years, with rising returns on capital. Varonis Systems, valued at $3.84 billion, faces risks from below-standard revenue growth, high marketing costs, and a 2.5 percentage point drop in operating margin. ePlus, at a $2.17 billion market cap, showed muted 4.8% annual revenue growth, lagging EPS gains, and a 2.5 percentage point decline in free cash flow margin over five years.
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