Investing.com -- SailPoint shares fell after the identity security firm reported fiscal fourth-quarter results in line with estimates, but the company’s shares tumbled around 11% in premarket trading on soft guidance for the current quarter.

The company’s fourth-quarter revenue climbed 23% to $295 million, just above the $292.5 million consensus estimate. Subscription revenue grew 25% and annual recurring revenue (ARR) rose 28% year over year to $1.125 billion, with SaaS ARR increasing 38% to $746 million.

Adjusted earnings per share for the period were $0.08, in line with the analyst estimates.

For the full year, revenue increased 24% to $1.07 billion, with subscription revenue up 27% to $1.01 billion.

On an adjusted basis, operating income improved to $61 million, or 21% margin, in the fourth quarter, up from $46 million a year earlier.

SailPoint also generated $64 million in operating cash flow and $57 million in free cash flow during the quarter.

CEO Mark McClain said demand remains tied to AI-driven enterprise security needs, noting that “the more automated and agentic the enterprise becomes, the more essential a foundational identity control plane becomes.”

Looking ahead, the company guided first-quarter revenue to $273 million to $277 million, missing the $284.03 million expected by analysts, and ARR to $1.153 billion to $1.157 billion.

Adjusted EPS for the first quarter are expected to be between $0.04 and $0.05, below the $0.06 anticipated by analysts.

For full fiscal 2027, it expects revenue of $1.26 billion to $1.27 billion, implying growth of roughly 21% and 18%–19%, with the consensus estimate at $1.28 billion. ARR is projected between $1.356 billion and $1.366 billion.

Adjusted EPS is projected between $0.30 and $0.34, compared to the $0.32 consensus estimate.

Adjusted operating income is estimated at $231.5 million to $236.5 million for the year, with margins of 18.2% to 18.8%.