Varonis Q2 revenue beats analyst estimates as cloud platform adoption increased

Varonis Systems

28/07/2026 21:20

Overview
Data and AI security firm's Q2 revenue rose 18% yr/yr, beating analyst expectations
Non-GAAP operating income turned positive from a loss last year
SaaS ARR excluding conversions grew 25% yr/yr as customers migrated to cloud platform

Outlook
Varonis sees Q3 revenues of $185 mln to $188 mln, up 14% to 16% year-over-year
Company expects full-year SaaS ARR of $819 mln to $850 mln, up 28% to 33% year-over-year
Varonis raises full-year SaaS ARR excluding conversions growth outlook to 21% at midpoint

Result Drivers
SAAS GROWTH - SaaS ARR excluding conversions rose 25% yr/yr, driven by new customer additions and increased adoption of cloud platform
CUSTOMER CONVERSIONS - Declines in term license and maintenance revenues were mainly due to customers moving to SaaS platform
AI SECURITY DEMAND - Increased focus on securing AI and data supported new business momentum, according to CFO

Company press release: ID:nGNX5fcPtc

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$180.02 mln
$176.77 mln (22 Analysts)
Q2 Net Loss
 
$46.81 mln
 
Q2 Gross Profit
 
$135.51 mln
 
Q2 Operating Income
 
-$40.63 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Varonis Systems Inc is $43.00, about 7.9% below its July 27 closing price of $46.67
The stock recently traded at 172 times the next 12-month earnings vs. a P/E of 168 three months ago

Reuters Recommended Reads
July 27 - F5 raises annual revenue growth forecast again on strong cybersecurity demand
July 28 - Commvault Q1 revenue rises on subscription growth
July 27 - Nvidia forms industry alliance for open AI security after Hugging Face hack

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)