SailPoint SAIL reported fourth-quarter fiscal 2026 earnings of 8 cents per share, in line with the Zacks Consensus Estimate. The company reported a loss of $4.29 in the year-ago quarter.
Revenues were $294.6 million, up 22.7% year over year and beat the consensus mark by 0.72%. SailPoint’s shares dropped 1.04% to close at $12.34 on March 19. The company's shares have plunged 37.9% in the past year against the Zacks Computer & Technology sector’s rise of 32.1%.
SAIL’s Q4’26 Top-Line Details
As of Jan. 31, 2026, annualized recurring revenues (ARR) grew 28% year over year to $1.12 billion.
Segment-wise, SaaS revenues accounted for 57.6% of total revenues in the fiscal fourth quarter, increasing approximately 37% year over year to $169.6 million. Maintenance and support revenues represented 12.6% of total revenues, which decreased 4.2% year over year to $37.1 million.
SailPoint, Inc. Price, Consensus and EPS Surprise
SailPoint, Inc. price-consensus-eps-surprise-chart | SailPoint, Inc. Quote
Term subscription revenues contributed 22.4% of total revenues, which rose 19.4% to $66 million. Other subscription services comprised 2.7% of total revenues, which increased 27.3% year over year to $8.1 million. Total subscription revenues, comprising the four sub-segments, accounted for 95.3% of total revenues, which increased 25.1% year over year to $280.8 million. The remaining segment, Services and other, represented 4.7% of total revenues in the reported quarter. The figure decreased 11.9% to $13.9 million.
SailPoint’s Operating Highlights
The non-GAAP gross margin contracted 40 basis points (bps) year over year to 78.5%.
Sales and marketing expense, on a non-GAAP basis and as a percentage of revenues, decreased 100 bps from the year-ago quarter’s level to 35.4%.
Research and development expense, on a non-GAAP basis and as a percentage of revenues, decreased 70 bps from the year-ago quarter’s level to 15.7%.
General and administrative expense, as a percentage of revenues, decreased from the year-ago quarter’s level of 7.1% to 6.8%.
SailPoint reported a non-GAAP operating margin of 20.6%, up from an operating income of 19% reported in the year-ago quarter.
SailPoint’s Balance Sheet Remains Strong
As of Jan. 31, 2026, cash and cash equivalents were $358 million compared with $298 million as of Oct. 31, 2025.
In the reported quarter, the company generated a cash flow from operations of $64 million compared with $54 million in the previous quarter.
SAIL generated free cash flow of $57 million compared with $49 million in the previous quarter.
SAIL Offers Q1 and FY27 Guidance
For first-quarter fiscal 2027, SailPoint expects revenues between $273 million and $277 million, indicating year-over-year growth of 18% to 20%.
The company expects the adjusted operating income to be in the range of $30-$31 million. Adjusted earnings are expected to be between 4 cents and 5 cents for the first quarter of fiscal 2027.
For fiscal 2027, revenues are forecasted to be between $1.260 billion and $1.270 billion, indicating year-over-year growth of 18% to 19%.
The company expects the adjusted operating income to be in the range of $231.5-$236.5 million.
Adjusted earnings are expected to be between 30 cents and 34 cents for fiscal 2027.
SailPoint’s Zacks Rank & Stocks to Consider
Currently, SAIL carries a Zacks Rank #3 (Hold).
Applied Materials AMAT, Advanced Energy Industries AEIS and Arrow Electronics ARW are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Applied Materials, Advanced Energy Industries and Arrow Electronics each sport a Zacks Rank #1 (Strong Buy), You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Advanced Energy Industries and Arrow Electronics are currently pegged at 20.2%,19.3% and 15.2%, respectively.
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