Varonis Systems, the American-Israeli cybersecurity company, drew heavy attention in Wall Street trading and jumped more than 13% after a Bloomberg report said it is exploring strategic options, including a possible sale of the business. The report said the company has received early interest from major private equity firms, including Blackstone, Thoma Bravo and Vista Equity Partners.
Investor interest in data security companies has risen as cyber threats increase and more organizations move to cloud services. That demand has become even more pronounced as autonomous artificial intelligence is being used in attacks, allowing hackers to find corporate weaknesses and launch complex intrusions within minutes.
Varonis has also been posting stronger financial results. In the latest quarter, it reported adjusted earnings of $0.06 per share, beating expectations for a loss of $0.05 per share, while first-quarter revenue rose 27% to $173.1 million. Looking ahead, the company raised its full-year 2026 SaaS ARR forecast to $814 million to $845 million. For the next quarter, the market expects earnings of $0.01 per share on revenue of about $176.79 million.
The stock, ticker VRNS, is covered by 25 analyst ratings over the past three months, with a weighted consensus of Buy and an average target price of $36.56, above its current price of $32.7. Needham analyst Mike Cikos reiterated a Buy rating and set a $40 target price, while Morningstar’s Malik Ahmed Khan said demand for privacy and data security supports the business but warned that Varonis may face strong competition from larger public cloud companies and smaller private startups. Varonis was founded in November 2004 by Yaki Faitelson and Ohad Korkus, is now based in Miami, employs about 2,800 people worldwide, and also runs a major R&D center in Israel.
