11:53 AM EDT, 06/11/2025 (MT Newswires) -- SailPoint ( SAIL ) shares soared intraday Wednesday as the security software company raised its full-year outlook after fiscal first-quarter revenue came in stronger than expected.

The company now expects fiscal 2026 adjusted earnings of $0.16 to $0.20 a share, compared with its prior guidance of $0.14 to $0.18. Revenue is now anticipated between $1.034 billion to $1.044 billion, representing growth of 20% to 21% over the previous year, compared with $1.025 billion to $1.035 billion expected previously. The consensus on FactSet is for full-year sales of $1.03 billion.

Annual recurring revenue is now expected to grow 25% to 26% to $1.10 billion to $1.11 billion, up from the previous outlook of $1.08 billion to $1.09 billion. Analysts expect ARR of $1.08 billion for the year, up from the previous year's $877 million.

"Our fiscal year 2026 is off to a strong start with ARR, revenue and adjusted operating margin, each exceeding the high end of our first quarter guidance as we continue to deliver durable growth at scale," Chief Financial Officer Brian Carolan said at an earnings call, according to a FactSet transcript. "We believe we're well-positioned to win the next generation of identity security because of the depth and breadth of our platform, our enterprise scale, and our willingness to listen and respond to market needs."

Shares of the company were up 19% in Wednesday trade.

For the three-month period ended April 30, revenue jumped 23% year over year to $230.5 million, surpassing the $225.2 million estimate in a FactSet poll. ARR surged 30% to $925 million, exceeding the $898.3 million consensus, with software as a service up 39%. SailPoint's ( SAIL ) net loss narrowed to $0.42 a share from $0.77 a year earlier.

"We delivered another strong quarter, driven by continued expansion across our customer base and strong adoption among Fortune 500 and Forbes Global 2000 companies," Chief Executive Mark McClain said in a statement.

The company is anticipating adjusted EPS of $0.04 to $0.05 this quarter on revenue of $242 million to $244 million, ahead of the current $240.8 million consensus.

SailPoint ( SAIL ) is positioned for durable growth in the future, Truist Securities analyst Joel Fishbein Jr. said in a note.

Price: 22.97, Change: +3.32, Percent Change: +16.90