EarningsQ2 2026 Earnings Report
DE:VS2 Q2 2026 EPS Results
Actual EPS€0.04
Consensus EPS<€0.01
Beat/MissBeat by +€0.03
One Year Ago EPS€0.03
DE:VS2 Q2 2026 Revenue Results
Actual Revenue€160.60M
Expected Revenue€157.06M
Beat/MissBeat by +€3.54M
YoY Revenue Growth+18.84%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeAfter Close
Conference CallTuesday, July 28, 2026
DE:VS2 Upcoming Earnings
Varonis Systems's next earnings date is estimated for November 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:VS2 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a net positive tone: strong underlying SaaS ARR growth (25% excl. conversions), healthy revenue growth (+18% YoY), improved GAAP/non‑GAAP profitability, substantial cash reserves and clear product momentum (Atlas, Interceptor, DAM) with meaningful customer wins. Offsets include margin pressure (gross margin and ARR contribution margin declines), a year‑to‑date drop in free cash flow (partly due to acquisition accounting costs), conversion uncertainty related to the on‑prem EOL transition, and some quarter‑end deal slippage tied to media rumors. On balance, management raised guidance and emphasized a robust pipeline and early July deal closures, indicating the positives materially outweigh the negatives.Company Guidance
Strong SaaS ARR Growth
SaaS ARR (excluding conversions) increased 25% year‑over‑year to $598.1M in Q2; total SaaS ARR including conversions was $726M. SaaS ARR from new logos grew more than 20% in the quarter. Management raised full‑year SaaS ARR outlook (total SaaS ARR $819M–$850M, +28%–33%; SaaS ARR excl. conversions growth ~20%–21%).
Revenue and Profitability Improvement
Total revenue was $180M, up 18% year‑over‑year; SaaS revenue $171.7M. Non‑GAAP operating income improved to $3.7M (2.1% margin) versus a loss of $1.9M (‑1.2%) in prior year. Net income was $5.3M ($0.04 diluted) versus $3.8M ($0.03) a year ago.
Product Momentum and Key Customer Wins
Notable traction for newer products (Atlas, Interceptor, Database Activity Monitoring). Signed a large healthcare customer (>40,000 employees) for Atlas Complete plus broad cloud/SaaS coverage and expanded a financial services customer consolidating multiple point products. Management reported Atlas is appearing in conversations and starting to contribute to pipeline.
Solid Balance Sheet and Raised Cash Guidance
As of June 30, 2026, cash, cash equivalents, short‑term deposits and marketable securities totaled $911.5M. Year‑to‑date free cash flow was $69.1M (adjusted to ~$81M excluding ~$11.9M acquisition accounting costs). Company raised full‑year free cash flow guidance to $105M–$110M.
Sales Momentum and Pipeline Strength
Management highlighted healthy new‑logo ACV growth (>20%), improved sales productivity for tenured reps, a strong pipeline driven by AI/data security demand, and early July closures including a reported 7‑figure deal indicating Q3 start strength. SaaS renewal rate remained above 90%.
DE:VS2 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed