Varonis Systems (VRNS) topped Q4 expectations but issued a mixed 2026 guidance, Wedbush said in a report Wednesday.

The report also said Varonis was able to complete its Software as a Service transition a year earlier than expected, positioning it for gains in 2027 and beyond despite near-term headwinds.

The note pointed to its 2026 guidance for operating income and EPS that was well below market expectations as the company continues to see persistent renewal headwinds.

"While this was another misstep in a very difficult environment for software/security stocks, the company has multiple key growth drivers over the next few years with its large market

opportunity," the report said.

Wedbush kept its outperform rating while cutting its price target to $35 from $53 to reflect a lower multiple.

Shares were down more than 10% in recent trading.

Price: 23.65, Change: -2.88, Percent Change: -10.86