New York, Jan 7, 2026, 12:53 EST — Regular session
- Varonis shares rise about 8% in midday trade, outpacing the broader market.
- Cantor Fitzgerald cuts its price target to $50 but keeps an Overweight rating.
- Traders eye early-February results for signals on recurring revenue growth and churn.
Varonis Systems (VRNS) shares jumped 8.3% to $36.06 by 12:53 EST on Wednesday, after touching $36.49 earlier in the session. The stock closed at $33.30 on Tuesday.
The move lands as the Nasdaq was up about 0.7% and investors showed a steadier appetite for risk across tech. Varonis sells data security software that scans, classifies and monitors access to sensitive data across cloud and on-prem systems. 1
Cantor Fitzgerald on Wednesday cut its price target on Varonis to $50 from $60 but kept an Overweight rating, tying the new target to an 8.4-times enterprise-value-to-sales multiple, down from 10.3 times and still above a 7.1 peer average. It said software-as-a-service, or SaaS — subscription software delivered in the cloud — made up 76% of annual recurring revenue (ARR), a subscription yardstick, and could reach 83% by year-end; it also cited net revenue retention of 109%-110%, meaning existing customers spent roughly 9%-10% more than a year earlier. The stock remains well below its 52-week high of $63.90 and has fallen nearly 35% over the past six months, the report said, citing InvestingPro data. 2
Brokerage notes have been driving the conversation around the name after its sharp slide. Piper Sandler upgraded Varonis to Overweight from Neutral on Monday, Nasdaq.com reported, citing Fintel. 3
Cybersecurity shares were broadly higher, with CrowdStrike up about 5.9% and Palo Alto Networks up about 4.9%, while SentinelOne gained roughly 2.3%. Software stocks have also been twitchy this week as traders tracked headlines around the CES 2026 tech conference in Las Vegas, where artificial intelligence has been a central theme, a StockStory report said. 4
Investors are still fixated on whether the SaaS push can offset pressure in the older on-premises business, after analysts pointed to churn and renewal challenges around recent results. ARR, retention and any change in the company’s migration pace matter more than small swings in quarterly revenue right now.
But this is a stock that has punished missed expectations, and another stumble in renewals could keep targets moving lower even if the longer-term subscription shift stays intact. A softer tape for high-multiple software would not help.
