• The company is looking to sell itself after receiving takeover interest from private equity firms.
• The private equity interest in the data security vendor comes amid the rise of AI-powered cyberattacks.
• In a recent note, Morningstar analyst Malik Ahmed Khan called Varonis a solid company operating in a tough competitive landscape.

Shares of Varonis Systems (VRNS) jumped on Tuesday after Bloomberg reported that the company is exploring strategic options, including a potential sale.

At the time of writing, VRNS stock was up more than 13%.

Private Equity Eyes VRNS

Varonis is considering putting itself up for sale after the company received preliminary interest from firms including Blackstone (BX), Thoma Bravo and Vista Equity Partners, according to the report.

The private equity interest in the data security vendor comes amid the rise of AI-powered cyberattacks, where hackers can deploy automated agents in minutes to explore vulnerabilities across the internet and conduct sophisticated attacks that previously took them months to plan and prepare.

VRNS’ Latest Financials

The company saw total revenue surge 27% to $173.1 million in the first quarter (Q1), while its adjusted earnings were $0.06 per share, both coming ahead of the average analyst estimate.

Varonis flagged healthy demand across both new and existing customers and had raised its full-year 2026 total SaaS annual recurring revenue (ARR) guidance to $814 million to $845 million, implying growth of 20% to 21%, excluding conversions, from its previous forecast of $805 million to $840 million.

In a recent note, Morningstar analyst Malik Ahmed Khan called Varonis a solid company operating in a tough competitive landscape.

“While increased demand for data privacy and security is a tailwind for Varonis’ business, we believe the firm could face tough competition from larger public players such as the hyperscalers (where a lot of this data is stored in the first place) and smaller privately owned startups,” the analyst said.

What Do Retail Traders Think About VRNS?

On Stocktwits, retail sentiment on VRNS turned ‘bullish’ from ‘bearish’ over the last 24 hours.

VRNS stock has surged 10% so far this year but has declined nearly 27% over the last 12 months.

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