TLDR
- Q1 ARR grew 30% year-over-year to $925 million.
- SaaS ARR increased 39% to $574 million.
- Total revenue reached $230 million, up 23% from last year.
- Shares soared over 19% post-earnings.
- Expanded $1M+ ARR customer count by 62%.
SailPoint, Inc. (Nasdaq: SAIL) reported strong fiscal first-quarter 2026 results on June 11, 2025. Its stock surged over 19% in early market trading as the company delivered impressive ARR and SaaS growth that exceeded market expectations.
ARR and SaaS Revenue Drive Growth
Annual Recurring Revenue (ARR) stood out as a highlight, reaching $925 million—a 30% increase compared to the same period last year. SaaS ARR contributed $574 million, up 39% year-over-year, reflecting high demand for SailPoint’s identity security solutions among enterprise customers.
The company also expanded the number of customers generating more than $1 million in ARR by 62%, underscoring strong enterprise adoption and growing platform reliance.
Revenue and Profitability Metrics
Total revenue for the quarter hit $230 million, representing a 23% increase year-over-year. Subscription revenue rose 27% to $215 million, reflecting customer preference for SailPoint’s recurring services.
🚨Stock Alert: SailPoint $SAIL jumps 12.2% to $22.04 pre-market after strong Q1:
📊Adjusted EPS: $0.01
📊Revenue: $230.5M (+23% YoY)FY25 Guidance Raised:
📊Revenue: $1.034B–$1.044B (vs. $1.03B est)
📊EPS: $0.16–$0.20 (vs. $0.17 est) pic.twitter.com/xyyEhHWfqN— ABBO News (@ABBONews) June 11, 2025
GAAP operating loss widened to $(185) million, or (80)% of revenue, compared to $(68) million, or (36)% in Q1 2025. However, adjusted income from operations improved to $24 million or 10% of revenue, up from $19 million or 10% of revenue a year ago, showing progress in operational efficiency despite the GAAP loss.
Positive Market Reaction
Investors responded positively to the report, driving shares up 18.27%. The company’s growing ARR, expanding enterprise customer base, and SaaS momentum signaled resilience and future growth potential despite reported operating losses.
SailPoint’s CEO Mark McClain emphasized the company’s position as a leader in AI-driven identity security, citing growing adoption among Fortune 500 and Forbes Global 2000 firms. He highlighted the strength of SailPoint’s platform, built for both scalability and intelligence.
Outlook for Fiscal 2026
For the second quarter and full fiscal year 2026, SailPoint offered a cautiously optimistic financial outlook, though it did not disclose specific forward-looking figures in the earnings release. Management noted the exclusion of certain GAAP items from its adjusted forecasts, such as stock-based compensation and intangible amortization, to provide a clearer operational view.
Performance Over Time
While the stock soared post-earnings, its long-term performance has lagged broader markets. Year-to-date and one-year returns were 0.59%, trailing the S&P 500’s 2.80% and 12.48%, respectively. Over three and five years, SailPoint’s return stood at 0.59% versus the S&P 500’s 54.99% and 101.39%, highlighting past volatility.
Strategic Positioning in a Competitive Market
SailPoint’s focus on providing scalable and AI-driven identity security solutions positions it well amid the growing need for enterprise-level cybersecurity. As more organizations prioritize digital transformation and cloud security, SailPoint’s product offerings are likely to remain essential, supporting sustained demand and customer growth.
