SailPoint's Q2 Revenue Forecast Surges 22-23%, FY26 Outlook Revised Upward

SailPoint Inc. (SAIL) rose 14.66% to $22.53 on Wednesday, fueled by a higher growth outlook for the year. The company expects 20-21% revenue growth to $1.034 billion-$1.044 billion for fiscal year 2026, up from the previous 19-20% target. Q2 revenue is expected to increase 22-23% to $242 million-$244 million. Adjusted EPS is forecasted at $0.16-$0.20 for the full year and $0.04-$0.05 for Q2.

SailPoint Inc. (SAIL) stock surged 14.7% to close at $22.53 on Wednesday following the release of its fiscal first-quarter results and an upgraded outlook for the year. The company reported quarterly revenue growth of 23% year-over-year to $230.47 million, exceeding analyst consensus estimates of $235.19 million. Subscription revenue rose by 27% to $215.32 million, while Annual Recurring Revenue (ARR) increased 30% to $925 million [1].

SailPoint's Software-as-a-Service (SaaS) ARR component also showed robust growth, rising 39% to $574 million. The company expanded its customer base with more than $1 million of ARR by 62% year-over-year. Additionally, the company reported an adjusted EPS of 1 cent, surpassing the consensus analyst estimate of a 1-cent loss [1].

For the second-quarter of fiscal year 2026, SailPoint expects an ARR of $963 million-$967 million, representing 26% growth. The company expects quarterly revenue of $242 million-$244 million, representing 22%-23% growth versus the $231.96 million consensus estimate. The company expects an adjusted EPS of 4 to 5 cents for Q2, which compares favorably to the consensus analyst estimate of a 1-cent loss per share [1].

Looking ahead to fiscal year 2026, SailPoint expects an ARR of $1.095 billion-$1.105 billion, representing 25%-26% growth. It expects revenue of $1.034 billion-$1.044 billion, representing 20-21% growth versus the $854.21 million analyst estimate. The company now projects an adjusted EPS of 16-20 cents, raising its forecast from 14-18 cents and beating the consensus estimate of a 10-cent loss [1].

Analysts responded positively to the results and upgraded their forecasts. Barclays analyst Saket Kalia maintained SailPoint with an Overweight rating and raised the price target from $23 to $25. Wells Fargo analyst Andrew Nowinski maintained the stock with an Equal-Weight rating and raised the price target from $16 to $20 [2].

References:
[1] https://www.benzinga.com/markets/earnings/25/06/45882090/sailpoint-lifts-2026-forecast-after-reporting-30-arr-growth-and-big-gains-in-high-spending-customers
[2] https://www.benzinga.com/news/25/06/45904189/sailpoint-analysts-increase-their-forecasts-after-better-than-expected-q1-earnings