SailPoint Disappoints Wall Street With Its Downbeat Q1’26 Revenue Projection

• Mizuho lowered the firm's price target on SailPoint to $16 from $20 and kept a ‘Neutral’ rating on the shares.
• Mizuho said SAIL reported "muted" annual recurring revenue upside with an "underwhelming" fiscal 2027 guidance.
• BMO Capital analyst Keith Bachman lowered the firm's price target on SailPoint to $17 from $25.

SailPoint (SAIL) shares fell 2% in Wednesday’s extended trading hours after a slew of analysts on Wall Street slashed their price targets on the stock after the company's “underwhelming” revenue projection for its first quarter of 2026. 

SAIL reported total revenue of $295 million, an increase of 23% year-over-year. Subscription revenue was $281 million, an increase of 25% year-over-year. It was above analyst expectations of $292.7 million, according to Stocktwits data. 

However, the company projected first-quarter (Q1) FY26 revenue to be in the range of $273 million to $277 million that was below analysts’ estimates of $280.8 million. 

Price Cuts

Mizuho lowered the firm's price target on SailPoint to $16 from $20 and kept a ‘Neutral’ rating on the shares. The company reported "muted" annual recurring revenue upside with an "underwhelming" fiscal 2027 guidance, the analyst told investors in a research note. However, the firm believes SailPoint's AI identity is off to a solid start, the note said, as per TheFly. 

TD Cowen lowered the firm's price target on SailPoint to $19 from $25 and kept a ‘Buy’ rating on the shares. The firm said that given broader market contraction, it has cut its price target on SailPoint despite "solid" Q4 results highlighted by 38% SaaS annual run-rate growth, 28% overall ARR growth, and solid but conservative guidance.

BMO Capital analyst Keith Bachman lowered the firm's price target on SailPoint to $17 from $25 and kept an ‘Outperform’ rating on the shares. Barclays analyst Saket Kalia also lowered the firm's price target on SailPoint to $16 from $20. 

How Did Stocktwits Users React?

Retail sentiment around SAIL stock trended in the ‘extremely bullish’ territory amid ‘extremely high’ message volume.

Shares in the company have fallen almost 40% year to date. 

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