SailPoint Inc (NASDAQ: SAIL) reported upbeat fourth-quarter results but announced its guidance for fiscal 2027 slightly below Street expectations, according to BTIG analyst Gray Powell.

The SailPoint Analyst: Powell reiterated a Buy rating, while cutting the price target from $22 to $18.

The SailPoint Thesis: The company reported Annual Recurring Revenue (ARR) of $1.125 billion, representing 28.3% year-on-year growth, topping consensus estimates of $1.123 billion and implying organic net adds of $85 million, Powell said in the note.

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SailPoint's operating income and free cash flows also came in ahead of expectations, he added.

The midpoint of management's fiscal 2027 ARR guidance came in at $1.361 billion, below Street estimates at $1.384 billion, the analyst stated. This implies total net new ARR additions of $236 million, below $248 million in fiscal 2026, he further said.

"That said, if we take a step back, net new ARR grew 27% in FY26, which is better than most companies in our coverage and marked an acceleration from the previous year," Powell wrote.

SAIL Price Action: Shares of SailPoint had risen by 3.13% to $12.86 at the time of publication on Thursday.

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