SailPoint Reports Q4 Earnings Above Expectations Amid Cautious Outlook

SailPoint Technologies reported adjusted earnings per share of $1.16 for the quarter ended November 30, 2025, surpassing the consensus estimate of $1.09. Revenue reached $208.5 million, a 14% year-over-year increase and slightly above the projected $206 million. The company’s subscription revenue, a key metric for its cloud-based identity governance platform, grew 16% year-over-year to $193.2 million, reflecting strong demand in enterprise security solutions. Despite the positive top-line results, SailPoint’s guidance for the first quarter of fiscal 2026 painted a more cautious picture. The company projected revenue between $207 million and $209 million, below the analyst consensus of $213 million. Additionally, adjusted EBITDA margins were expected to decline to 34%–35%, down from 37.5% in the previous quarter, due to increased investment in sales and marketing. Management cited ongoing macroeconomic uncertainty and slower-than-expected deal closures in large enterprise accounts as contributing factors. The stock reacted negatively in after-hours trading, dropping 4.2% following the release. Analysts noted that while SailPoint’s core business remains resilient, the guidance suggests a potential deceleration in growth momentum. The company’s deferred revenue rose to $442 million, indicating continued customer commitment, but the near-term outlook remains fragile amid tightening IT budgets and competitive pressure in the identity and access management space. Investors are now focused on whether SailPoint can sustain its growth trajectory with improved execution and a clearer path to margin expansion. The outcome will likely influence broader sentiment toward cybersecurity stocks, particularly those reliant on enterprise software adoption.