Varonis Systems stock heads toward October 27 results

Published on 10/07/2026 at 01:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Varonis Systems stock heads into its October 27 results after Q2 revenue rose 18 percent to USD 180 million. SaaS ARR excluding conversions increased 25 percent to USD 598.1 million.

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Varonis Systems stock was last at USD 49.08 on Nasdaq on October 6, 2026, up 1.93 percent from the prior close. The next major checkpoint is the company's Q3 report scheduled for October 27, 2026, after the market closes, according to MarketBeat.

Q2 growth sets the bar

In its Q2 2026 earnings call dated July 28, 2026, Yahoo Finance reported that revenue reached USD 180 million, an 18 percent increase from Q2 2025. SaaS ARR excluding conversions rose 25 percent year over year to USD 598.1 million, while total SaaS ARR reached USD 726 million.

Management guided Q3 revenue to USD 185 million to USD 188 million, representing 14 percent to 16 percent growth, and forecast non-GAAP diluted earnings per share of USD 0.02 to USD 0.03. Full-year revenue guidance was set at USD 735 million to USD 739 million, with growth of 18 percent to 19 percent.

Margins remain the counterweight

The growth profile came with a profitability tradeoff. Q2 gross margin was 77.7 percent, down from 80.6 percent a year earlier, while ARR contribution margin fell to 13.3 percent from 16.5 percent, according to Yahoo Finance. Non-GAAP operating income nevertheless reached USD 3.7 million, compared with a USD 1.9 million operating loss in Q2 2025.

For investors, the October report will test whether the SaaS transition can sustain double-digit revenue growth while margins absorb the end of the self-hosted platform. The company also expects Q3 SaaS ARR growth of 22 percent to 23 percent excluding conversions, making ARR the clearest operating measure for the upcoming release.

Consensus target stays above the stock

The consensus rating is Buy among 22 analysts, with 17 Buy ratings, 6 Holds and 1 Sell, according to Investing.com as of September 10, 2026. The average 12-month target is USD 51.32, with a high of USD 60.00 and a low of USD 28.00; the average target lies 4.56 percent above the USD 49.08 price.

Stock remains below its yearly high

Varonis Systems stock was last at USD 49.08 on Nasdaq on October 6, 2026, at 4:00 p.m. ET, with a session range of USD 48.50 to USD 49.35. Its 52-week range was USD 19.70 to USD 63.90, and its market capitalization was USD 5.6 billion on that date.