Varonis Systems (NASDAQ: VRNS) saw its stock soar 5.92% in pre-market trading on Wednesday, building on the momentum from its impressive first-quarter earnings report released after market close on Tuesday. The data security and analytics company outperformed analyst expectations, demonstrating strong growth and improved financial performance.

For the first quarter of 2025, Varonis reported revenue of $136.42 million, representing a 19.65% increase from the same period last year and beating the analyst consensus estimate of $133.06 million. The company also achieved a non-GAAP earnings per share of $0.01, significantly outperforming the expected loss of $0.05 per share. This strong performance, coupled with an optimistic outlook for both Q2 and full-year 2025, has sparked investor enthusiasm.

Adding to the positive sentiment, several analysts have raised their price targets for Varonis Systems. JP Morgan increased its target price to $53 from $45, while UBS raised its target to $60 from $55. Barclays maintained a Buy rating with a price target of $54. These upgrades reflect growing confidence in Varonis' growth trajectory and financial health, further fueling the stock's pre-market surge.