Zinger Key Points
- SailPoint stock jumped 10% as Q1 ARR surged 30% to $925M and SaaS ARR rose 39% to $574M, topping EPS estimates.
- FY26 ARR outlook raised to $1.105B; Q2 revenue seen up 22%-23% as customer base with $1M+ ARR jumps 62% year-on-year.
- Last Chance: See the "Power Pattern" That Delivered Winners 9 Out of the Last 10 Summers. Get The Details Here
SailPoint, Inc SAIL stock surged Wednesday after it reported fiscal first-quarter results.
The company reported quarterly revenue growth of 23% year-on-year to $230.47 million, compared to analyst consensus estimates of $235.19 million. The quarterly subscription revenue was $215.32 million, up by 27%.
The company reported an adjusted EPS of 1 cent, surpassing the consensus analyst estimate of a 1-cent loss.
Annual Recurring Revenue (ARR) was $925 million, up 30%. The Software-as-a-Service component of ARR (SaaS ARR) was $574 million, up by 39%.
The company said it expanded the number of customers with more than $1 million of ARR by 62% Y/Y.
The company reported an adjusted operating margin of 10.2%, unchanged from the same period last year.
For the quarter, the company used $96.81 million in cash for its operations, up from $55.4 million year-over-year.
As of April 30, 2025, cash and cash equivalents totaled $228.1 million.
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, which compares favorably to the consensus analyst estimate of a 1-cent loss per share.
For fiscal 2026, SailPoint expects an ARR of $1.095 billion- $1.105 billion (prior $1.075 billion-$1.085 billion), representing 25%-26% growth.
It expects revenue of $1.034 billion-$1.044 billion (prior $1.025 billion-$1.035 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.
Price Action: SAIL stock is trading higher by 11.0% to $21.80 premarket at last check Wednesday.
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