SailPoint 2026 Q3 Earnings Beats Expectations with 97.8% EPS Improvement

SailPoint (SAIL) reported fiscal 2026 Q3 earnings on Dec 10, 2025, delivering revenue of $281.94 million (up 19.8% YoY) and narrowing its net loss to $35.98 million (39.5% reduction). The company raised its full-year ARR guidance to $1.122 billion, reflecting strong cross-sell momentum and product innovation.

Revenue

Total Subscription revenue reached $266.16 million, driven by a $155.96 million SaaS segment, which accounted for 55.4% of total subscription revenue. Maintenance and support contributed $37.96 million, while term subscriptions added $65.11 million. Other subscription services and perpetual licenses totaled $7.13 million and $41,000, respectively. Services and other revenue rounded out the total at $15.74 million, completing the $281.94 million revenue figure.

Earnings/Net Income

SailPoint narrowed losses to $0.06 per share in Q3 2026, a 97.8% improvement from a $2.67 per share loss in the prior-year period. The company’s net loss decreased by 39.5% to $-35.98 million, reflecting operational efficiency and revenue growth. The EPS improvement underscores the company’s progress toward profitability.

Post-Earnings Price Action Review

The strategy of buying SailPoint shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate performance but underperformed the benchmark. The strategy achieved a 1.10% return, trailing the benchmark by 11.97%, with a CAGR of 1.34% over the past three years. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 0.02, indicating a low-risk profile with minimal losses during market downturns.

CEO Commentary

Mark McClain highlighted the company’s $1.04 billion ARR milestone, driven by cross-sell growth in Machine Identity, Data Access, and Non-Employee Risk Management solutions. He emphasized innovation in real-time adaptive identity security and the SailPoint Machine Identity solution, which is the company’s fastest-growing product. Strategic priorities include expanding the flex licensing model and positioning SailPoint as a strategic identity layer in cybersecurity.

Guidance

SailPoint raised FY2026 ARR guidance to $1.122 billion (up 28% YoY) and Q4 ARR to $82 million (30% growth). Q4 revenue guidance is $292 million (22% YoY growth) with an adjusted operating margin of 20.2% and adjusted EPS of $0.09. Full-year revenue is guided to $1.069 billion (24% growth) with an 18% adjusted operating margin and $0.23 adjusted EPS.

Additional News

1. Stock Price Volatility: Shares dipped 4–5% post-earnings despite beating revenue and EPS estimates, a pattern seen in cybersecurity peers like CrowdStrike and Zscaler.

2. AI-Driven Identity Security: CEO Mark McClain emphasized the role of AI agents in reshaping identity governance, positioning SailPoint’s platform as critical for real-time governance in AI-integrated enterprises.

3. M&A Activity: The Savvy acquisition is accelerating SailPoint’s product roadmap, with new offerings like Accelerated Application Management and Observability & Insights.