Varonis Systems beats Q1 revenue expectations

Varonis Systems

28/04/2026 21:22

Overview

US data and AI security firm's Q1 revenue rose 27% yr/yr, beating analyst expectations

SaaS ARR grew 69% yr/yr, up 29% excluding conversions, driven by customer migration to SaaS

Company repurchased 5.4 mln shares for $132.1 mln in Q1

Outlook

Varonis expects Q2 2026 revenue of $175 mln to $178 mln, up 15% to 17% year-over-year

Company raises full-year SaaS ARR growth guidance to 27% to 32%

Varonis sees full-year 2026 revenue of $731 mln to $737 mln, up 17% to 18%

Result Drivers

SAAS GROWTH - SaaS revenues rose sharply as customers migrated from term licenses and maintenance to the SaaS platform

CUSTOMER DEMAND - Co cited healthy demand from both new customers and expansion with existing customers, per CFO Guy Melamed

Company press release: ID:nGNX4n3LJN

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$173.13 mln
$165.50 mln (20 Analysts)
Q1 Net Income
-$36.85 mln
Q1 Gross Profit
$131.56 mln
Q1 Operating Income
-$44.48 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "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 $30.00, about 19.8% above its April 27 closing price of $25.05

The stock recently traded at 160 times the next 12-month earnings vs. a P/E of 108 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)