SailPoint Shares Rise 13.5% as SaaS Growth Offsets Estimate Cuts
The stock gained over the past month after quarterly earnings beat estimates, while analysts’ forecasts moved lower and the company raised its ARR outlook.
Key takeaways
- SailPoint shares added about 13.5% in the month after its latest earnings report.
- Fiscal second-quarter adjusted earnings were 9 cents per share, above the 8-cent consensus estimate.
- SaaS revenue rose 34% year over year to $193.9 million.
- SailPoint raised its fiscal 2027 ARR outlook to $1.375 billion-$1.385 billion.
SailPoint shares gained about 13.5% in the month after its latest earnings report, outperforming the S&P 500. The company’s fiscal second-quarter adjusted earnings beat estimates, though revenue came in slightly below the consensus.
Adjusted earnings were 9 cents per share, 12.5% above the Zacks Consensus Estimate of 8 cents. Revenue rose 16.8% year over year to $309 million, missing the consensus mark by 0.51%.
SaaS revenue climbed 34% to $193.9 million, and SaaS annual recurring revenue increased 36% to $847 million. SailPoint said AI-driven ARR exceeded $70 million, while AI-driven solutions accounted for more than 30% of net new ARR.
The company raised its fiscal 2027 ARR outlook to $1.375 billion-$1.385 billion, from $1.364 billion-$1.374 billion. Its revenue forecast remained at $1.265 billion-$1.275 billion, and it continued to expect roughly $200 million in free cash flow.
The share gain came as estimates moved in the opposite direction. Zacks reported that fresh estimates had trended downward over the past month.
This article was produced with the help of AI technology. Source: Yahoo Finance
