SailPoint, Inc. (NASDAQ:SAIL) reported second-quarter results ahead of Wall Street expectations, but the stock slid 6.2% after the company issued third-quarter revenue guidance that missed consensus forecasts.

The identity security company delivered adjusted earnings of $0.07 per share, topping analyst estimates of $0.04. Revenue came in at $264 million, well above the $243.48 million forecast and marking a 33% year-over-year increase. Subscription sales jumped 36% to $248 million.

Even with these gains, SailPoint projected Q3 revenue of $269 million to $271 million, below the $277.62 million analysts had anticipated. Investors sold off the shares following the weaker-than-expected outlook.

“SailPoint delivered strong second quarter results that exceeded all previously guided metrics, driven by 37% year-over-year SaaS ARR growth and record cash flow from operations,” said Mark McClain, SailPoint CEO and Founder. “We are seeing strong continued demand for our comprehensive, intelligent approach to secure humans and machines in the AI era.”

Annual Recurring Revenue (ARR) rose 28% from a year ago to $982 million, with SaaS ARR growing 37% to $623 million. Operating cash flow totaled $50 million, and free cash flow reached $46 million.

For fiscal 2026, SailPoint raised its full-year outlook across the board. The company now expects revenue between $1.052 billion and $1.058 billion, implying growth of 22% to 23%, up from its prior forecast of $1.034 billion to $1.044 billion. Full-year adjusted EPS is now projected at $0.20 to $0.22, versus the earlier range of $0.16 to $0.20.

On a GAAP basis, SailPoint’s operating loss narrowed to $41 million, or 15% of revenue, compared with $66 million, or 33% of revenue, in the prior-year quarter. Adjusted operating income climbed to $54 million, equal to 20% of revenue, up sharply from $21 million, or 11%, a year earlier.

Sailpoint stock price

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