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SailPoint (SAIL) Q3 2026: Revenue Growth to $282M Tests Profitability Concerns

Simply Wall St · 2d ago

SailPoint (SAIL) just posted its Q3 2026 numbers, logging revenue of about $282 million with basic EPS of roughly -$0.06, while trailing twelve month figures show revenue of about $1.0 billion and basic EPS of around -$3.59. The company has seen revenue move from about $700 million on a trailing basis in late 2024 to just over $1.0 billion by Q3 2026. Over the same stretch, EPS stayed negative, keeping profitability firmly in focus for investors trying to gauge whether that top line scale can eventually translate into healthier margins.

See our full analysis for SailPoint.

With the quarterly scorecard on the table, the next step is to set these numbers against the prevailing SailPoint narratives to see which storylines hold up and which ones the latest margins quietly push into question.

Curious how numbers become stories that shape markets? Explore Community Narratives

NasdaqGS:SAIL Earnings & Revenue History as at Dec 2025
NasdaqGS:SAIL Earnings & Revenue History as at Dec 2025

Revenue Climbs From $198 million To $282 million

  • Top line has stepped up over recent periods, with revenue moving from about $199 million in Q2 2025 to $282 million in Q3 2026, while the trailing twelve months reached roughly $1.0 billion from about $700 million in late 2024.
  • What is notable for the bullish narrative is that this faster revenue base, including the move from about $861 million to $1.0 billion on a trailing basis between Q4 2025 and Q3 2026, is appearing alongside forecasts for roughly 15.5% annual growth, yet the company still posted a trailing net loss of about $1.5 billion, which means growth alone has not yet shifted the business toward profitability.
    • Supporters who point to the $281.9 million Q3 2026 revenue as evidence of momentum need to reconcile it with the Q3 2026 quarterly net loss of about $36 million.
    • Investors focused on long term upside have to weigh that forecast growth rate of about 15.5% per year against losses that have expanded at roughly 35.2% annually over the past five years.
In a market paying close attention to cybersecurity names, many investors are asking whether SailPoint's move past $1 billion in trailing revenue is enough to justify sticking with a still loss making story. 📊 Read the full SailPoint Consensus Narrative.

Losses Stay Deep At $1.5 billion Trailing

  • On a trailing basis, net income excluding extra items sits near a $1.5 billion loss, compared with around a $979 million loss in late 2024, and the latest individual quarter shows a $36 million loss after earlier swings like a $103 million profit in Q3 2025 and a $372 million loss in Q4 2025.
  • Bears highlight that SailPoint is unprofitable today and is not expected to reach profitability over the next three years, and the data backs that caution because trailing EPS has worsened from about negative $12.1 to negative $3.6 per share over the observed periods while cumulative losses have grown roughly 35.2% per year over five years, even as quarterly net income flips between positive and sharply negative.
    • The Q3 2026 trailing EPS of about negative $3.59 contrasts with the brief positive Q3 2025 EPS of about $1.24, underlining how one strong quarter has not changed the broader loss trend.
    • The sequence from a $245.8 million loss in Q2 2025 to a $211.1 million loss in Q1 2026 and then a $10.6 million loss in Q2 2026 shows volatility rather than a clear trend to breakeven.
After another year of large cumulative losses, skeptics question whether SailPoint can turn multi hundred million dollar annual losses around without a major shift in its cost structure. 🐻 SailPoint Bear Case

Valuation Premium Versus 11x Sales

  • The stock trades around $19.88 per share at roughly 11 times trailing sales, noticeably above peer averages near 7.5 times and the US software group at about 4.9 times, while analysts collectively see upside to a target near $26.87 and a separate DCF fair value sits at about $11.62.
  • Consensus narrative notes that investors are paying this 11 times sales multiple despite SailPoint remaining unprofitable and forecast to stay that way over the next three years, which leaves two competing interpretations: either the roughly 15.5% expected revenue growth and a 35.1% implied upside to the $26.87 target justify the premium, or the gap between the current $19.88 price and the $11.62 DCF fair value reinforces concerns that the valuation already bakes in optimistic execution.
    • Supporters can point out that trading below the $26.87 analyst target gives mathematically room for appreciation if revenue forecasts are met.
    • Critics instead focus on the spread between the 11 times sales multiple and the sector at about 4.9 times, arguing that continued losses make SailPoint more sensitive if growth or sentiment cool from here.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on SailPoint's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

SailPoint's rapid revenue growth is still overshadowed by deep, volatile losses and a rich sales multiple. This leaves profitability and valuation risk front and center.

If you want businesses where valuation leans in your favor instead of against you, use our these 900 undervalued stocks based on cash flows today to focus on stocks priced for attractive long term returns.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.