By Mackenzie Tatananni

SailPoint shares were on pace for their worst day since March even after the software provider posted fiscal first-quarter adjusted earnings that beat analysts' estimates.

Total revenue came to $280 million, edging past Wall Street's call for $275.8 million. Subscription revenue, up 23% at $266 million, accounted for the bulk of that. Adjusted earnings of 5 cents a share were a hair above the 4 cents analysts were anticipating.

While SailPoint's quarterly operating loss shrank to $80 million from $185 million a year earlier, it was still wider than the $40 million loss reported in the fourth quarter.

The cybersecurity company slightly raised its fiscal-year revenue guidance. SailPoint now sees total revenue in the range $1.265 billion to $1.275 billion, up from $1.26 billion to $1.27 billion. Management kept its adjusted earnings guidance unchanged at 30 cents to 34 cents a share.

SailPoint stock sank more than 15% in premarket trading Tuesday, putting it on pace for its largest single-day percentage decrease since March, according to Dow Jones Market Data. Futures tracking the Nasdaq Composite pointed 0.8% higher.

Investors might be picking up on a decelerating growth trend. In the most recent quarter, total annual recurring revenue grew 26% and total revenue 22%. SailPoint's second-quarter guidance signals a deceleration, with total ARR growth dropping to 24% and revenue growth down at 17% to 18%.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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June 09, 2026 07:44 ET (11:44 GMT)

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