Varonis reported fourth-quarter earnings per share of $0.08, exceeding consensus estimates by 166.7%. Revenue for the period reached $173.37 million, up 9.4% year over year from $158.5 million in the same quarter last year. SaaS revenue surged by 97.1%, accounting for more than 82% of total quarterly sales and highlighting accelerating subscription demand for the company’s data security platform.

Total annual recurring revenue climbed to $745.4 million, representing a 16.1% increase compared to the prior year. This growth was driven primarily by strong SaaS ARR expansion, reflecting broader adoption of cloud-based data protection solutions and the integration of artificial intelligence features into Varonis’ product suite.

Among 22 brokerages covering the company, one has issued a sell rating, six have maintained holds and fifteen have recommended buys, resulting in an overall average recommendation of “Moderate Buy.” Recent research notes include both upward and downward revisions to target prices, indicating mixed views on near-term margin pressures versus longer-term subscription growth potential.

The company raised its fiscal 2026 EPS guidance to a range of $0.06–$0.10 and set revenue forecasts between $722 million and $730 million, signaling continued confidence in its SaaS-driven growth trajectory. In addition, Varonis agreed to acquire AI TRiSM specialist AllTrue.ai for approximately $150 million, aiming to enhance its AI security offerings and capitalize on rising investor interest in generative-AI risk management.