Update shared on27 Aug 2025
Fair value Increased 2.59%Analysts have raised Varonis Systems' price target from $60.85 to $62.10, citing strong SaaS migration execution, accelerating demand for data security, and optimism around future growth and margins driven by increased AI adoption.
Analyst Commentary
- Bullish analysts highlight robust demand for data security solutions driven by industry trends and rising prioritization of identity and data protection within enterprise budgets.
- Successful SaaS platform migration positions Varonis for renewed revenue and earnings growth, with strong recent financial results exceeding consensus estimates in revenue, annual recurring revenue, and free cash flow.
- Strong traction and upsell opportunities anticipated following completion of the SaaS transition, with optimism about future annual recurring revenue acceleration.
- Varonis is seen as a key beneficiary of the growing adoption of agentic artificial intelligence, which is expected to significantly accelerate revenue growth and expand gross margins in fiscal 2026.
- Upward price target revisions reflect confidence in execution, favorable market dynamics, and broad-based improvements across security, design, and software-as-a-service verticals.
What's in the News
- Repurchased 1,004,000 shares for $38.74 million; completed buyback of 2,481,000 shares for $100.03 million under the current plan.
- Issued Q3 guidance for $163–168 million in revenue (10–13% YoY growth); full-year revenue guided to $616–628 million (12–14% YoY growth).
- Launched a strategic integration with imPAC Labs to enhance real-time protection, data governance, AI workflow security, and continuous audit readiness across cloud environments.
- Released Next-Gen Database Activity Monitoring (DAM) as part of its platform, offering comprehensive, unified database security, behavior analytics, and automation across major database providers.
- Announced a strategic partnership with Microsoft to enhance secure workplace AI adoption, deepen integration with Microsoft Purview, and broaden automated protection for sensitive data across Microsoft and other major SaaS ecosystems.
Valuation Changes
Summary of Valuation Changes for Varonis Systems
- The Consensus Analyst Price Target has risen slightly from $60.85 to $62.10.
- The Future P/E for Varonis Systems has risen slightly from 71.39x to 73.97x.
- The Net Profit Margin for Varonis Systems has fallen slightly from 13.40% to 13.03%.
Disclaimer
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