A Glimpse of Varonis Systems's Earnings Potential

Varonis Systems VRNS is preparing to release its quarterly earnings on Tuesday, 2025-07-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Varonis Systems to report an earnings per share (EPS) of $-0.09.

The announcement from Varonis Systems is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

Last quarter the company beat EPS by $0.05, which was followed by a 2.28% increase in the share price the next day.

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

Tracking Varonis Systems's Stock Performance

Shares of Varonis Systems were trading at $54.69 as of July 25. Over the last 52-week period, shares are down 0.85%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Insights on Varonis Systems

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

With 9 analyst ratings, Varonis Systems has a consensus rating of Outperform. The average one-year price target is $59.11, indicating a potential 8.08% upside.

Comparing Ratings with Competitors

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

• Analysts currently favor an Neutral trajectory for SentinelOne, with an average 1-year price target of $22.15, suggesting a potential 59.5% downside.
• Analysts currently favor an Neutral trajectory for UiPath, with an average 1-year price target of $14.25, suggesting a potential 73.94% downside.
• Analysts currently favor an Buy trajectory for CommVault Systems, with an average 1-year price target of $193.57, suggesting a potential 253.94% upside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for SentinelOne, UiPath and CommVault Systems, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Varonis Systems ranks at the bottom for Revenue Growth among its peers. It also ranks lowest for Gross Profit margin. In terms of Return on Equity, Varonis Systems is positioned at the bottom compared to its peers. Overall, Varonis Systems lags behind its peers in key financial metrics.

Get to Know Varonis Systems Better

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.

Key Indicators: Varonis Systems's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Varonis Systems's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 19.65%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -26.23%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Varonis Systems's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -8.69%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Varonis Systems's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.21%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 2.02, Varonis Systems faces challenges in effectively managing its debt levels, indicating potential financial strain.

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.