SailPoint’s Q1 FY’26 Results Beat Expectations, Revenue Jumps 23%

SailPoint, Inc. (NASDAQ: SAIL), a leader in enterprise identity security, has reported its fiscal first quarter 2026 results, showcasing a strong performance that exceeded market expectations. The company continues to expand its customer base and deliver innovative identity security solutions.

SailPoint, Inc. Reports Q1 With 23% y/y Revenue Growth

In the fiscal first quarter of 2026, SailPoint, Inc. demonstrated robust performance with a total revenue of $230 million, marking a 23% year-over-year growth. This figure notably surpassed the expected revenue of $224.96 million. The company’s subscription revenue, which is a major component of its total revenue, amounted to $215 million, reflecting a 27% increase from the previous year.

This growth was primarily driven by the strong adoption of SailPoint’s SaaS offerings, which saw a 39% increase in annual recurring revenue (ARR) to $574 million. Additionally, the total ARR reached $925 million, a 30% year-over-year rise.

Despite the impressive revenue figures, SailPoint reported a GAAP operating loss of $185 million, which is an increase from the $68 million loss in the same quarter of the previous year. However, the adjusted income from operations stood at $24 million, maintaining a 10% operating margin, consistent with the previous year. This adjusted figure highlights the company’s ability to manage its operations efficiently, excluding certain non-cash expenses.

The company’s net loss for the quarter was $187 million, translating to a GAAP net loss per share of $0.42. However, when adjusted for non-GAAP measures, the adjusted EPS came in at $0.01, which is a significant improvement over the expected EPS of $-0.01. This adjustment reflects SailPoint’s strategic focus on core operational performance, excluding equity-based compensation and other non-recurring expenses.

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SailPoint Offers Optimistic Guidance for Q2 and Full Fiscal Year 2026

Looking ahead, SailPoint has provided optimistic guidance for the second quarter and the full fiscal year 2026. For the upcoming quarter, the company anticipates total revenue to range between $242 million and $244 million, representing a year-over-year growth of 22% to 23%. The expected ARR for the second quarter is projected to be between $963 million and $967 million, indicating a 26% growth from the previous year.

For the full fiscal year 2026, SailPoint has revised its guidance upwards, expecting total revenue to be between $1,034 million and $1,044 million, reflecting a 20% to 21% year-over-year growth. The ARR for the year is projected to be between $1,095 million and $1,105 million, showcasing a growth rate of 25% to 26%. These figures surpass the prior guidance, indicating the company’s confidence in its continued growth trajectory.

Furthermore, the adjusted income from operations for the full year is expected to be between $161 million and $166 million, with an adjusted operating margin ranging from 15.4% to 16.1%. The adjusted EPS for the year is projected to be between $0.16 and $0.20, reflecting an upward revision from the prior guidance. These projections underscore SailPoint’s commitment to delivering sustainable growth and enhancing shareholder value through strategic investments in innovation and customer expansion.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.