Varonis Systems (VRNS) Tops Q4 Earnings and Revenue Estimates

Core Viewpoint - Varonis Systems (VRNS) reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.18 per share a year ago, indicating a significant earnings surprise of +155.59% [1] Financial Performance - The company achieved revenues of $173.37 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.87% and showing an increase from $158.51 million year-over-year [2] - Over the last four quarters, Varonis has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance and Outlook - Varonis shares have declined approximately 10.8% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The future performance of Varonis stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $163.79 million, and for the current fiscal year, it is $0.38 on revenues of $717.32 million [7] - The estimate revisions trend for Varonis was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The security industry, to which Varonis belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Palo Alto Networks (PANW), is expected to report quarterly earnings of $0.93 per share, reflecting a year-over-year increase of +14.8% [9]