SailPoint Q2 beats on profit, ARR growth
SailPoint reported second-quarter fiscal 2027 results with ARR up 25% year over year to $1.231 billion and operating profit of $62.8 million. Analysts said AI-related ARR rose above $70 million, while full-year guidance was left unchanged and third-quarter revenue guidance was mixed.
Enterprise identity security company SailPoint Inc (NASDAQ: SAIL ) reported its results for the second quarter of fiscal 2027. Here are some key analyst takeaways from the Wednesday report: Rosenblatt Securities analyst Catharine Trebnick maintained a Neutral rating and price target of $17. DA Davidson analyst Rudy Kessinger reiterated a Neutral rating and price target of $17. Check out other analyst stock ratings.
Rosenblatt Securities: SailPoint delivered strong quarterly results, with "a cleaner beat than last quarter," Trebnick said in a note. ARR (annual recurring revenue) grew 25% year-on-year to $1.231 billion, coming in $11 million above the midpoint of the company’s guidance and $10.2 million higher than consensus, she added. AI-driven ARR crossed $70 million versus SailPoint’s fiscal 2027 target of $10 million and contributed more than 30% of net new ARR, which indicates that the company is monetizing AI, "rather than just building pipeline," the analyst stated.
She noted, however, that management left full-year revenue, margin, earnings and free cash flow guidance unchanged, with second-quarter revenue of $309 million coming in $1.4 million below Street expectations. See More: Top Momentum Stocks DA Davidson: SailPoint delivered a solid quarter, with operating profit of $62.8 million and earnings of nine cents per share topping consensus estimates of $57.1 million and eight cents per share, respectively, Kessinger said. Revenue of $308.8 million missed expectations of $310.2 million, he added.
While AI-driven ARR climbed from $20 million in fiscal 2026 to over $70 million, "it is important to remember that AI ARR includes all ARR from customers who are consuming any Agentic Suites, Agentic Fabric, etc. and thus the actual NNARR from AI / Agentic products is much lower," the analyst wrote. He further stated that management announced mixed guidance for the fiscal third quarter: Revenue of $328 million, slightly lower than consensus of $328.3 million. Operating Profit of $58 million, much lower than consensus of $61.5 million.
Earnings of eight cents per share, in line with expectations. ARR of $1.290 billion at the midpoint, higher than consensus of $1.278 billion, implying NNARR of $59.0 million versus Street expectations of $57.3 million. SAIL Price Action: SailPoint shares were down 1.87% to $17.31 at publication on Friday. Read Also: Earnings Volatility Watch: Oracle And Adobe Report, But the Wild Swings Belong to Smaller Names