Varonis (VRNS) Surges 10.4%: Is This an Indication of Further Gains?

Varonis Systems VRNS shares soared 10.4% in the last trading session to close at $46.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% loss over the past four weeks.

The optimism surrounding the stock can be attributed to strong growth in Varonis’ SaaS business, with SaaS ARR excluding conversions rising 25% year over year to $598.1 million in the second quarter of 2026. The company is benefiting from more than 20% growth in new-logo ACV and rising adoption of Atlas, Interceptor and Database Activity Monitoring as companies increase spending on data and AI security, which is supporting investor confidence in its growth outlook.

This data-management software company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $186.84 million, up 15.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Varonis, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VRNS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Varonis is a member of the Zacks Security industry. One other stock in the same industry, Check Point Software CHKP, finished the last trading session 0.4% lower at $133.89. CHKP has returned 8.5% over the past month.

For Check Point, the consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $2.5. This represents a change of -36.6% from what the company reported a year ago. Check Point currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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