10:36 AM EST, 12/09/2025 (MT Newswires) -- SailPoint ( SAIL ) on Tuesday raised its full-year guidance after fiscal third-quarter results came in stronger than expected, with annual recurring revenue topping $1 billion.

For fiscal 2026, the security software company now expects revenue to grow 24% year over year to about $1.07 billion, compared with its prior outlook of $1.05 billion to $1.06 billion. The consensus on FactSet is for sales of $1.06 billion.

ARR is now guided at about $1.12 billion, indicating 28% growth, up from its previous estimate of $1.105 billion to $1.115 billion. Analysts are looking for ARR of $1.11 billion.

SailPoint ( SAIL ) is now projecting adjusted per-share earnings of $0.22 to $0.23 for the year, compared with $0.20 to $0.22 previously expected. Wall Street forecasts $0.22.

For the third quarter ended Oct. 31, overall revenue grew 20% year over year to $281.9 million, ahead of the market estimate of $270.3 million. ARR surged 28% to $1.04 billion, exceeding Wall Street's $1.03 billion view. Adjusted EPS came in at $0.08, above the consensus of $0.06.

Truist Securities said in a note that SailPoint ( SAIL ) is positioned for "durable growth" as companies increasingly adopt artificial intelligence agents.

"We believe the company's ability to manage all identity types from employees, non-employees, and machines in a variety of deployment environments and its increasing number of use cases, technology innovation, and high recurring revenue have positioned it strongly for durable growth," Truist Vice President Junaid Siddiqui wrote.

For the fiscal fourth quarter, SailPoint ( SAIL ) anticipates revenue of $290 million to $294 million, indicating an increase of 21% to 22% year over year. Analysts are looking for $290.7 million. ARR growth is pegged at 28% to $1.12 billion, above the consensus of $1.11 billion. The company expects adjusted EPS between $0.08 and $0.09, while analysts forecast $0.08.

SailPoint's ( SAIL ) shares were down 4% in Tuesday trade.

Price: 19.35, Change: -0.91, Percent Change: -4.49