Varonis Systems Shareholders File Class Action as Stock Plummets 48.67% in One Day

Written by Emily J. Thompson, Senior Investment Analyst

VRNS+0.66%

Source: Globenewswire

Updated: 1h ago

0mins

Source: Globenewswire

Class Action Notice: The Gross Law Firm has issued a notice to shareholders of Varonis Systems (NASDAQ: VRNS), encouraging those who purchased shares between February 4, 2025, and October 28, 2025, to contact the firm for potential lead plaintiff appointment, indicating significant legal risks for the company.
Dramatic Financial Decline: Varonis reported a significant miss in annual recurring revenue (ARR) in its Q3 2025 financial results and lowered its full-year guidance, revealing weaker-than-expected customer renewals and conversions that adversely affect revenue growth potential.
Stock Price Volatility: Varonis' stock price plummeted from $63.00 at the close on October 28, 2025, to $32.34 the next day, a decline of approximately 48.67%, reflecting strong market concerns regarding the company's future outlook.
Layoffs and Product Termination: The company announced the end of its self-hosted solution and a 5% workforce reduction, highlighting significant challenges in its transition strategy that may impact its long-term competitiveness and market position.

VRNS

$34.84+Infinity%1D

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: 34.610

Low

40.00

Averages

57.61

High

80.00

Current: 34.610

Low

40.00

Averages

57.61

High

80.00

Cantor Fitzgerald

Overweight

downgrade

$60 -> $50

Al Analysis

2026-01-07

Reason

Cantor Fitzgerald

Price Target

$60 -> $50

Al Analysis

2026-01-07

downgrade

Overweight

Reason

Cantor Fitzgerald lowered the firm's price target on Varonis to $50 from $60 and keeps an Overweight rating on the shares. The firm's 2026 outlook for Security & Infrastructure Software highlights improving deal sizes, rising AI-driven demand, and broad optimism for near-term cybersecurity spending, the analyst tells investors in a research note. Cantor expects cloud, identity, and AI security to be the fastest-growing segments, while endpoint, legacy SecOps, and network security continue to lag.

Piper Sandler

Neutral -> Overweight

upgrade

$45 -> $47

2026-01-05

Reason

Piper Sandler

Price Target

$45 -> $47

2026-01-05

upgrade

Neutral -> Overweight

Reason

As previously reported, Piper Sandler upgraded Varonis to Overweight from Neutral with a price target of $47, up from $45. The firm notes shares meaningfully disappointed coming out of Q3. With numbers effectively reset and an exclusive focus on the SaaS segment of the business - which has remained relatively healthy - Piper thinks shares set up as a compelling long from current levels. The firm believes organizations will continue to piecemeal together data security solutions to address concerns, and the company's stronghold across legacy data stores as well as the more recent modernization of its capabilities should enable Varonis to see continued momentum in both new customer growth as well as migration of the installed base to SaaS - rendering numbers conservative for the coming year.

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RBC Capital

Outperform

downgrade

$60 -> $41

2026-01-05

Reason

RBC Capital

Price Target

$60 -> $41

2026-01-05

downgrade

Outperform

Reason

RBC Capital lowered the firm's price target on Varonis to $41 from $60 and keeps an Outperform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.

Barclays

Overweight

downgrade

$50 -> $45

2026-01-05

Reason

Barclays

Price Target

$50 -> $45

2026-01-05

downgrade

Overweight

Reason

Barclays lowered the firm's price target on Varonis to $45 from $50 and keeps an Overweight rating on the shares. The firm adjusted ratings and price targets in the security, design, and vertical-specific software group as part of its 2026 outlook.

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.