Varonis Systems (NASDAQ:VRNS) is set to give its latest quarterly earnings report on Tuesday, 2026-02-03. Here's what investors need to know before the announcement.

Analysts estimate that Varonis Systems will report an earnings per share (EPS) of $-0.07.

The market awaits Varonis Systems's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

The company's EPS beat by $0.11 in the last quarter, leading to a 48.67% drop in the share price on the following day.

Here's a look at Varonis Systems's past performance and the resulting price change:

Quarter	Q3 2025	Q2 2025	Q1 2025	Q4 2024
EPS Estimate	-0.05	0.01	-0.05	0.14
EPS Actual	0.06	0.03	0.00	0.18
Price Change %	-49.00	5.00	2.00	-7.00

Tracking Varonis Systems's Stock Performance

Shares of Varonis Systems were trading at $29.84 as of January 30. Over the last 52-week period, shares are down 36.78%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Varonis Systems

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Varonis Systems.

The consensus rating for Varonis Systems is Outperform, derived from 6 analyst ratings. An average one-year price target of $44.0 implies a potential 47.45% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of CommVault Systems, Teradata and Tenable Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for CommVault Systems, with an average 1-year price target of $156.68, suggesting a potential 425.07% upside.
• Analysts currently favor an Outperform trajectory for Teradata, with an average 1-year price target of $30.43, suggesting a potential 1.98% upside.
• Analysts currently favor an Neutral trajectory for Tenable Holdings, with an average 1-year price target of $29.0, suggesting a potential 2.82% downside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for CommVault Systems, Teradata and Tenable Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Varonis Systems	Outperform	9.12%	$126.43M	-6.33%
CommVault Systems	Outperform	19.50%	$254.54M	8.33%
Teradata	Outperform	-5.45%	$253M	20.25%
Tenable Holdings	Neutral	11.16%	$195.69M	0.65%

Key Takeaway:

Varonis Systems ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is at the top for Return on Equity.

Discovering Varonis Systems: A Closer Look

Varonis Systems is a cybersecurity vendor focused on data privacy and security. The firm is currently undergoing a cloud transition as it weans its on-premises customers over to its cloud products that are delivered as software-as-a-service. The New York-based firm was founded in 2005 and went public in 2014.

Varonis Systems: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining Varonis Systems's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.12% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Varonis Systems's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -18.53%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Varonis Systems's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -6.33%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Varonis Systems's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.83%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Varonis Systems's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.85.

To track all earnings releases for Varonis Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.