SailPoint 2026 Q1 Earnings Mixed Results as Net Loss Widens
Daily EarningsFriday, Jun 13, 2025 5:11 am ET

SailPoint (SAIL) reported its fiscal 2026 Q1 earnings on Jun 12th, 2025. SailPoint's fiscal Q1 2026 performance showed a notable divergence from expectations. Although revenue grew 23% year-over-year to $230.47 million, it fell short of analyst projections of $235.19 million. On the earnings front, SailPoint surprised by reporting an adjusted EPS of 1 cent, defying expectations of a loss. The company has raised its guidance, forecasting higher revenue and adjusted EPS for fiscal 2026, signaling confidence in future performance despite the current mixed results.
Revenue
SailPoint's total revenue for the first quarter of fiscal 2026 reached $230.47 million, marking a 22.8% increase from the previous year. The subscription segment contributed significantly, generating $215.32 million, with SaaS accounting for $131.81 million, maintenance at $37.39 million, term subscriptions at $40.04 million, and other subscription services bringing in $6.08 million. Perpetual licenses generated $5000, while services and other segments added $15.14 million to the total revenue.
Earnings/Net Income
SailPoint reduced losses per share to $0.42 in 2026 Q1 from $0.77 in 2025 Q1, showing a 45.5% improvement. However, the net loss increased by 110.0%, amounting to $-187.31 million from the previous year's $-89.18 million loss. The EPS improvement signals better performance despite the widening net loss.
Price Action
The stock price of SailPoint has edged up 1.44% during the latest trading day, surged 29.30% during the most recent full trading week, and surged 17.50% month-to-date.
Post Earnings Price Action Review
Investors looking at SailPoint's earnings results have been met with a mixed bag, with revenue falling short of expectations while earnings per share exceeded them. Historically, buying SAIL shares when revenue misses and holding for 30 days has shown potential for moderate returns but involves risk. The strategy highlights the stock's volatility and the influence of global steel prices on its performance. With an average target price of Rs 110 and a 'Hold' consensus among analysts, the stock presents limited upside potential. However, entering at a lower price point when revenue expectations are missed could offer gains if the stock rebounds due to industry recovery or positive company-specific developments. Despite potential returns, caution is advised due to the stock's high beta and the unpredictable nature of steel prices, which affect SailPoint's financial performance. Investors should weigh the risks carefully, considering the company's financial trends and market conditions.
CEO Commentary
"We delivered another strong quarter, driven by continued expansion across our customer base and strong adoption among Fortune 500 and Forbes Global 2000 companies," said Mark McClain, CEO and Founder of SailPoint. He highlighted that enterprises are increasingly turning to SailPoint to manage both human and digital identities at scale. The CEO emphasized the company's focus on delivering a comprehensive identity security platform that is AI-driven and built for extensibility, which he believes fuels consistent performance. McClain expressed confidence in the market's demand for next-gen identity solutions, indicating that the company's growth underscores its leadership in innovation and execution.
Guidance
For the second quarter of fiscal 2026, SailPoint expects total revenue between $242 million and $244 million, representing year-over-year growth of 22% to 23%. The company anticipates adjusted earnings per share (EPS) in the range of $0.04 to $0.05. For the full fiscal year 2026, SailPoint raises its revenue guidance to between $1.034 billion and $1.044 billion, projecting a growth rate of 20% to 21%. The total annual recurring revenue (ARR) is expected to be between $1.095 billion and $1.105 billion, indicating a year-over-year growth of approximately 25% to 26%.
Additional News
SailPoint is enhancing its global presence, having recently launched a new AWS-based SaaS instance in Brazil to strengthen its South American operations. This move is part of the company's broader strategy to expand its market reach and accelerate digital transformation initiatives worldwide. Additionally, SailPoint has made significant advances in AI technology, with research highlighting the rapid adoption of AI agents that are driving demand for evolved security solutions. The company's commitment to innovation is further evidenced by its recent rollout of the Identity Security Cloud and updates to its Customer Success Program, aimed at boosting productivity and enhancing comprehensive identity security. These strategic developments underscore SailPoint's efforts to maintain a competitive edge in the rapidly evolving cybersecurity landscape.
Revenue
SailPoint's total revenue for the first quarter of fiscal 2026 reached $230.47 million, marking a 22.8% increase from the previous year. The subscription segment contributed significantly, generating $215.32 million, with SaaS accounting for $131.81 million, maintenance at $37.39 million, term subscriptions at $40.04 million, and other subscription services bringing in $6.08 million. Perpetual licenses generated $5000, while services and other segments added $15.14 million to the total revenue.
Earnings/Net Income
SailPoint reduced losses per share to $0.42 in 2026 Q1 from $0.77 in 2025 Q1, showing a 45.5% improvement. However, the net loss increased by 110.0%, amounting to $-187.31 million from the previous year's $-89.18 million loss. The EPS improvement signals better performance despite the widening net loss.
Price Action
The stock price of SailPoint has edged up 1.44% during the latest trading day, surged 29.30% during the most recent full trading week, and surged 17.50% month-to-date.
Post Earnings Price Action Review
Investors looking at SailPoint's earnings results have been met with a mixed bag, with revenue falling short of expectations while earnings per share exceeded them. Historically, buying SAIL shares when revenue misses and holding for 30 days has shown potential for moderate returns but involves risk. The strategy highlights the stock's volatility and the influence of global steel prices on its performance. With an average target price of Rs 110 and a 'Hold' consensus among analysts, the stock presents limited upside potential. However, entering at a lower price point when revenue expectations are missed could offer gains if the stock rebounds due to industry recovery or positive company-specific developments. Despite potential returns, caution is advised due to the stock's high beta and the unpredictable nature of steel prices, which affect SailPoint's financial performance. Investors should weigh the risks carefully, considering the company's financial trends and market conditions.
CEO Commentary
"We delivered another strong quarter, driven by continued expansion across our customer base and strong adoption among Fortune 500 and Forbes Global 2000 companies," said Mark McClain, CEO and Founder of SailPoint. He highlighted that enterprises are increasingly turning to SailPoint to manage both human and digital identities at scale. The CEO emphasized the company's focus on delivering a comprehensive identity security platform that is AI-driven and built for extensibility, which he believes fuels consistent performance. McClain expressed confidence in the market's demand for next-gen identity solutions, indicating that the company's growth underscores its leadership in innovation and execution.
Guidance
For the second quarter of fiscal 2026, SailPoint expects total revenue between $242 million and $244 million, representing year-over-year growth of 22% to 23%. The company anticipates adjusted earnings per share (EPS) in the range of $0.04 to $0.05. For the full fiscal year 2026, SailPoint raises its revenue guidance to between $1.034 billion and $1.044 billion, projecting a growth rate of 20% to 21%. The total annual recurring revenue (ARR) is expected to be between $1.095 billion and $1.105 billion, indicating a year-over-year growth of approximately 25% to 26%.
Additional News
SailPoint is enhancing its global presence, having recently launched a new AWS-based SaaS instance in Brazil to strengthen its South American operations. This move is part of the company's broader strategy to expand its market reach and accelerate digital transformation initiatives worldwide. Additionally, SailPoint has made significant advances in AI technology, with research highlighting the rapid adoption of AI agents that are driving demand for evolved security solutions. The company's commitment to innovation is further evidenced by its recent rollout of the Identity Security Cloud and updates to its Customer Success Program, aimed at boosting productivity and enhancing comprehensive identity security. These strategic developments underscore SailPoint's efforts to maintain a competitive edge in the rapidly evolving cybersecurity landscape.

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