Varonis Systems Misled Investors, Stock Plummets 48.67% After Q3 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Businesswire
- Investor Lawsuit: Robbins LLP has filed a class action against Varonis Systems, Inc., alleging that the company misled investors between February 5, 2025, and October 28, 2025, resulting in significant losses for shareholders.
- Performance Decline: On October 28, 2025, Varonis reported third-quarter results that fell short of expectations and lowered its full-year guidance, causing its stock price to plummet from $63.00 to $32.34 per share, a staggering 48.67% drop in just one day.
- Market Confidence Eroded: The lawsuit claims that Varonis presented a falsely optimistic outlook, failing to accurately reflect the sustainability of its annual recurring revenue growth, which has negatively impacted investor confidence in the company's future.
- Legal Implications: Investors must submit their papers by March 9, 2026, to serve as lead plaintiffs in the class action, highlighting concerns over corporate governance and executive accountability, which may influence future investment decisions.
Analyst Views on VRNS
Wall Street analysts forecast VRNS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VRNS is 57.61 USD with a low forecast of 40.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 35.440
Low
40.00
Averages
57.61
High
80.00
Current: 35.440
Low
40.00
Averages
57.61
High
80.00
About VRNS
Varonis Systems, Inc. is a data security company. The Company’s cloud-native data security platform discovers and classifies critical data, removes exposures, and detects advanced threats with artificial intelligence (AI)-powered automation. Varonis software enables enterprises of all sizes and industries to protect data stored in the cloud and on-premises, including sensitive files, emails and databases; confidential personal data belonging to customers, patients and employees; financial records; source code, strategic and product plans; and other intellectual property. Its SaaS product portfolio includes two product lines: its flagship Varonis Data Security Platform, which protects Microsoft 365, Windows file shares, Active Directory, Edge devices (VPN, DNS, proxy), UNIX/Linux and hybrid NAS storage, and DatAdvantage Cloud, which protects IaaS environments and SaaS applications, such as Salesforce, AWS, Azure, Google Cloud, Google Workspace, Databricks, ServiceNow, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
