Is Varonis Systems (VRNS) stock Halal?

Varonis Systems is a prominent company specializing in data security and analytics. Its core mission is to safeguard sensitive enterprise data from cyber threats and insider risks through advanced data protection products and services. Varonis focuses on protecting unstructured data, which includes vast quantities of files and emails stored within an organization’s IT infrastructure. The company’s solutions help in monitoring data usage, detecting unusual behavior, and promptly mitigating potential security breaches. Before any of that matters to a Muslim investor, one question comes first: is Varonis Systems stock Halal?

Is Varonis Systems Shariah compliant?

Yes. In the October 2026 screening Varonis Systems (VRNS) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. The Shariah case on a technology company like Varonis Systems is rarely about the product. What AAOIFI Shariah Standard No. 21 examines is the money around the product: cash parked in instruments that earn Riba, borrowing measured against a market capitalisation that moves daily, and any incidental income from sources Islam prohibits, which must stay below 5% of revenue.

Does Varonis Systems pass the business activity test?

Yes. In the October 2026 screening Varonis Systems holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Varonis Systems' income Halal?

Yes, within AAOIFI's tolerance. Varonis Systems' income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 97.71% tells holders of VRNS what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around None, the purification amount is modest but real.

Does Varonis Systems meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation, measured against a market capitalisation of $5.45B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has VRNS re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Varonis Systems?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read Why a Halal Stock Screener Matters for Halal Investing