Data security company Varonis Systems (NASDAQ:VRNS) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 9.4% year on year to $173.4 million. Guidance for next quarter’s revenue was better than expected at $165 million at the midpoint, 0.9% above analysts’ estimates. Its non-GAAP profit of $0.08 per share was significantly above analysts’ consensus estimates.
A number of stocks fell in the morning session after a broad sell-off swept through the software sector, driven by growing concerns about the impact of artificial intelligence. This led to institutional repositioning as traders pivot away from traditional SaaS providers in favor of companies with more defensible, AI-integrated moats.
The tech-heavy Nasdaq Composite index declined by 0.8%, while the broader S&P 500 also slipped.
Data security company Varonis Systems (NASDAQ:VRNS) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Unprofitable companies face headwinds as they struggle to keep operating expenses under control.
Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
Varonis Systems’s stock price has taken a beating over the past six months, shedding 35.7% of its value and falling to $33.55 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Shares of data security company Varonis Systems (NASDAQ:VRNS) jumped 6.1% in the afternoon session after Cantor Fitzgerald maintained an Overweight rating on the data security company despite lowering its price target.
A number of stocks jumped in the afternoon session after investor attention turned to the annual CES 2026 technology conference in Las Vegas, with artificial intelligence emerging as a central theme.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Software is eating the world, and virtually no business is left untouched by it. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that make re-ratings harder.
Unfortunately, the rich prices have held them back over the past six months as the industry’s gain of 1.1% has fallen short of the S&P 500’s 14.4% rise.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the cybersecurity industry, including Varonis Systems (NASDAQ:VRNS) and its peers.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
