SailPoint revenue misses estimates as EPS beats and FY27 outlook holds

The quarter was mixed against expectations: Revenue was $308.8 million, below the published consensus of roughly $316.5 million, while adjusted EPS of $0.09 exceeded the roughly $0.08 expectation. The revenue miss matters because the company is still being valued primarily on recurring-growth execution, even though the EPS beat shows better-than-expected cost leverage. (Income Statement; Adjusted net income reconciliation)

The underlying mix was better than the headline revenue miss suggests: SaaS revenue grew 34%, but maintenance and support fell 8% and services and other revenue dropped 17%, leaving total revenue growth at 17%. (Revenue by type) The filing also shows adjusted operating income rising to $62.8 million, although margin was essentially flat at 20.3%, so the EPS beat was not driven by a broad acceleration in operating profitability.

The outlook did not add an upside surprise: Q3 guidance calls for revenue of $326 million to $330 million and adjusted EPS of $0.07 to $0.08; FY27 guidance remains $1.265 billion to $1.275 billion of revenue and $0.30 to $0.34 of adjusted EPS. (Q3'27 Guidance; FY'27 Guidance) Those full-year ranges were already broadly known before the release, with published expectations around $1.27 billion of revenue and $0.32 of EPS, so reaffirmation is confirmation rather than an estimate reset.

Cash generation was a quiet negative, while the acquisition adds execution work: Six-month free cash flow was $69.9 million versus negative $54.7 million a year earlier, but quarterly free cash flow declined to $37.4 million from $46.0 million, and the Entro Security acquisition consumed $118.2 million of cash during the first half. (Free cash flow reconciliation; Cash Flow statement) Netting the revenue miss against the EPS beat and unchanged outlook, this lands as broadly in line rather than a clean beat.