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NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors of its investigation on behalf of Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ:FUTU) investors concerning the Company’s and/or members of its senior management’s possible violation of the federal securities laws or other unlawful business practices.

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What Happened?

On May 22, 2026, Futu announced it had “received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission and its Shenzhen bureau (collectively the “CSRC”) in connection with the Company’s operations in mainland China.” On this news, the price of Futu shares declined by $34.10 per share, or approximately 28%, from $123.86 per share on May 21, 2026 to close at $89.7 6 on May 22, 2026.

What Should I Do?

At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.

If you purchased or otherwise acquired Futu securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

[LEARN MORE ABOUT SECURITIES CLASS ACTIONS]

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1171
https://www.kmllp.com
https://securitiesleadplaintiff.com/
[email protected]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Seagate (STX - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this electronic storage maker is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Seagate is 2.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 83.9% this year, crushing the industry average, which calls for EPS growth of 44.2%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Seagate has an S/TA ratio of 1.29, which means that the company gets $1.29 in sales for each dollar in assets. Comparing this to the industry average of 0.68, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Seagate is well positioned from a sales growth perspective too. The company's sales are expected to grow 32.5% this year versus the industry average of 16.4%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Seagate have been revising upward. The Zacks Consensus Estimate for the current year has surged 16.2% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Seagate a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Seagate is a potential outperformer and a solid choice for growth investors.

Key Takeaways Seagate logged a record 47% non-GAAP gross margin in Q3 2026, up 480 bps sequentially.STX says Mozaic 4 HAMR can reach 44TB drives with minimal BOM changes, boosting mix-led costs.Seagate locked FY27 build-to-order deals; nearline capacity largely allocated through 2027 amid tight supply. Seagate Technology Holdings plc (STX - Free Report) has been sustaining strong gross margin expansion through a combination of disciplined pricing, improving product mix and the rapid adoption of its HAMR-based Mozaic platform. In the third quarter of fiscal 2026, Seagate reported a record non-GAAP gross margin of 47%, up 480 basis points (bps) sequentially and roughly 1,080 bps year over year. Revenues climbed 44% year over year to $3.1 billion. The company also generated nearly $1 billion in free cash flow, reflecting strong operational leverage and sustained demand from cloud and enterprise customers.

A major contributor to margin expansion has been Seagate’s transition toward higher-capacity HAMR drives. The company highlighted that Mozaic 4+, its second-generation HAMR platform, can deliver up to 44 terabytes per drive with minimal changes to bill of materials, allowing Seagate to increase storage density without significantly increasing manufacturing costs. Management emphasized that cost reductions are increasingly being driven by higher-capacity drive mix and technology efficiencies rather than factory utilization gains alone.

Seagate’s pricing strategy is also supporting profitability momentum. The company has finalized build-to-order agreements for fiscal 2027, locking in pricing, mix and volumes for a large portion of nearline capacity. Management noted that strong cloud demand, combined with tight supply conditions, continues to support favorable pricing trends. Executives added that profitability improvements are being driven by both pricing gains and the continued ramp of 40-terabyte HAMR drives.

Seagate expects the momentum to continue into fiscal 2027. The company guided for further sequential revenue and margin expansion, supported by rising AI-driven storage demand, increasing HAMR adoption and disciplined operational execution. With nearline capacity largely allocated through calendar 2027 and strong visibility into customer demand, Seagate appears well-positioned to sustain its gross margin expansion trajectory over the coming quarters.

For the fiscal fourth quarter, it expects revenues of $3.45 billion (+/- $100 million). At the midpoint, this indicates a 41% year-over-year improvement. At the midpoint of revenue guidance, non-GAAP operating margin is projected to increase in the low 40% range.

Taking a Look at STX’s Competitors’ Margin GrowthWestern Digital Corporation (WDC - Free Report) reported a non-GAAP gross margin of 50.5% for third-quarter fiscal 2026, up 1,040 bps year over year and 440 bps sequentially, above its guidance (47-48%). Strong gross margins were driven by a richer mix of higher-capacity drives, disciplined pricing and tight cost management. With strong demand, pricing and improved visibility across cloud, consumer and client segments, it expects revenues of $3.65 billion (+/- $100 million) in fourth-quarter fiscal 2026, implying about 40% year-over-year growth at the midpoint. The company expects non-GAAP gross margin in the range of 51-52%.

Micron Technology (MU - Free Report) posted a non-GAAP gross profit of $7.75 billion for the fiscal second quarter, up 486% year over year and 131% sequentially. The fiscal second-quarter non-GAAP gross margin of 74.9% improved from the year-ago quarter’s 37.9% and the previous quarter’s 56.8%. The non-GAAP operating margin came in at 69%. Micron Technology posted a non-GAAP operating margin of 47% for the previous quarter, and it had a non-GAAP operating margin of 24.9% in the year-ago quarter. For the third quarter of fiscal 2026. The company anticipates revenues of $35.5 billion (+/-$750 million). For the quarter, Micron Technology projects a non-GAAP gross margin of approximately 81%.

STX’s Price Performance, Valuation & EstimatesIn the past year, STX shares have skyrocketed 628%, outperforming the Computer Integrated Systems industry’s growth of 220.7%.

Image Source: Zacks Investment Research

In terms of forward price/earnings, STX’s shares are trading at 33.36X, higher than the industry’s 16.04X.

Image Source: Zacks Investment Research

STX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2026 have increased 15.6% to $14.89 over the past 60 days, while the same for fiscal 2027 has gone up 34.9% to $26.34.

Image Source: Zacks Investment Research

STX currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Seagate (STX - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Seagate currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for STX that show why this electronic storage maker shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For STX, shares are up 2.17% over the past week while the Zacks Computer - Integrated Systems industry is up 5.16% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 38.63% compares favorably with the industry's 9.42% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Seagate have risen 99.28%, and are up 620.89% in the last year. On the other hand, the S&P 500 has only moved 8.44% and 29.27%, respectively.

Investors should also pay attention to STX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. STX is currently averaging 4,796,557 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with STX.

Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STX's consensus estimate, increasing from $12.88 to $14.89 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that STX is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Seagate on your short list.

Memory stocks are red-hot right now, led by juggernauts like Sandisk (SNDK 0.04%), Western Digital (WDC 5.34%), Seagate Technology (STX 3.44%), and Micron Technology (MU 3.81%), which are racking up triple-digit year-to-date returns.

Two months ago, a new exchange-traded fund (ETF) was launched to tap into the incredible growth from this industry: the Roundhill Memory ETF (DRAM 3.68%). Investors have certainly taken notice, as the ETF has already amassed $10 billion in assets since its April 2 launch, making it one of the fastest-growing new ETFs ever.

The Roundhill Memory ETF is actively managed, focusing on memory and storage chip companies from around the world, not just the U.S.

Image source: Getty Images.

"Memory is a critical bottleneck of the AI [artificial intelligence] revolution, supported by a secular shift toward data-intensive applications and sustained demand growth," the ETF fact sheet states. "DRAM provides investors with global exposure to a targeted basket of leading memory producers, positioned at the center of AI-driven demand for faster, more efficient data processing and storage."

Roundhill promotes the DRAM fund as the first pure-play ETF that focuses exclusively on memory chip stocks. But investors should be aware that this popular new ETF is riskier than most.

Up 90% since it launched The Roundhill Memory ETF has only been around for about seven weeks, and already it has generated a 90% return, surging to about $52.82 per share as of May 25.

When you look at the ETFʻs top holdings, you can see why. Along with the memory stocks mentioned above -- Micron, Sandisk, Western Digital, Seagate -- the portfolio also includes major Korean chipmakers SK Hynix and Samsung Electronics, along with Kioxia from Japan, among others.

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There are only about 12 to 15 holdings in the portfolio, so it is highly concentrated.

There are certainly some red flags. The narrow focus of Roundhill Memory ETF on not just semiconductors, but a subset within the space, should elicit caution. These stocks will all move in tandem, and right now they are moving aggressively higher. But that won't always be the case.

Another red flag is that roughly 74% of the portfolio is concentrated in the top three holdings -- SK Hynix, Micron, and Samsung. That's an extremely top-heavy portfolio concentrated in three similar stocks, which makes the portfolio much riskier than the typical diversified ETF -- even a typical semiconductor ETF.

A third caution flag is the use of swap agreements and derivatives to amplify its gains, including a roughly 9% swap agreement in Micron. These derivatives generally carry higher risks than direct investments in a security, so while they may juice returns during a rally, they may increase declines during a downturn.

Highly concentrated and risky The good news is that there is a memory stock supercycle right now, where demand is outpacing supply due to the need for storage and memory for the massive AI computing infrastructure being built. That is driving the huge flows. But it will eventually peak, and there will be troughs, and this ETF will go in the other direction, perhaps aggressively so.

So, while this ETF will produce strong returns with its focus on this growth industry within the AI revolution when markets are up, it will not be without volatility. It helps that it is actively managed, so managers can make adjustments as needed. But it is highly concentrated in a specific area, so there's not going to be much diversification.

So while it is certainly not too late to invest in this ETF, investors should certainly make sure that the allocation to this concentrated, aggressive growth ETF is relatively small in a well-diversified portfolio.

Key Takeaways Seagate posted 44% revenue growth as AI demand and HAMR adoption boosted margins and cash flow.STX expects Mozaic HAMR drives to drive scalable growth with up to 50TB capacity by 2027.NetApp faces cautious IT spending and cloud competition despite hybrid cloud and AI momentum. The explosion of AI, cloud computing and enterprise data analytics has transformed data infrastructure into one of the most evolving technology themes of today. Companies are generating, storing and processing unprecedented amounts of information, creating long-term demand for storage hardware, hybrid cloud platforms and intelligent data management solutions. Two notable players benefiting from this trend are Seagate Technology Holdings plc (STX - Free Report) and NetApp, Inc. (NTAP - Free Report) .

Both benefit from growing enterprise demand for data storage and management solutions, serving customers navigating AI, cloud and digital transformation trends. Seagate is primarily a storage hardware company best known for its HDDs. The company benefits from the ongoing growth of cloud storage demand, particularly among hyperscalers building AI infrastructure. NetApp, by contrast, focuses on intelligent data infrastructure software and enterprise storage systems. It helps enterprises manage data across on-premise environments and public clouds through hybrid cloud solutions, all-flash storage arrays and AI-ready data services.

In simple terms, Seagate sells the “capacity” needed to store massive amounts of data, while NetApp sells the “intelligence” needed to manage, optimize and secure that data. This distinction is critical because software-centric infrastructure companies often command higher margins and more recurring revenue than hardware-focused businesses.

While both companies operate in the broader data management ecosystem, their business models, growth drivers and investment profiles differ significantly. For investors seeking exposure to the AI and data infrastructure boom, the question becomes: which stock offers the better investment opportunity? Let’s find out.

The Case for STXSeagate delivered a strong March quarter, highlighting resilient demand and strong operating leverage. Revenue rose 44% year over year, gross margin reached a record level, non-GAAP operating income more than doubled and free cash flow approached $1 billion — among the company’s highest ever. Momentum also continued to build for its Mozaic HAMR platform, with two of the world’s largest cloud service providers qualifying Seagate’s 4+ terabyte-per-disk products. Qualification timelines matched those of PMR products, reflecting the platform’s maturity and Seagate’s execution as it works to meet the accelerating demand of its customers.

Seagate’s strategy is built on three key pillars. First, rising storage demand remains durable as AI-driven applications accelerate data creation, expand data retention and increase reliance on historical datasets. These trends are driving the need for cost- and energy-efficient high-capacity storage, making hard drives increasingly critical to modern data centers. Second, its technology roadmap, led by its Mozaic HAMR platform, is delivering key innovations to support growing customer demand both now and over the long term. Third, the company’s disciplined strategy is helping convert demand into profitable growth. Its build-to-order model improves demand visibility and pricing discipline, while the HAMR-based product roadmap is expected to support further margin expansion as adoption scales.

Per management, Seagate is entering a “new era of structural growth,” driven by AI-led demand, rising adoption of Mozaic products and disciplined execution focused on margins, cash flow and long-term value creation. While SSDs dominate high-speed workloads, HDDs remain far more cost-effective for bulk storage, making them essential for hyperscale AI data centers. STX’s strategy emphasizes increasing areal density rather than unit volumes, enabling a more capital-efficient path to scale while enhancing cost and power efficiency per terabyte.

This supports its goal of mid-20% exabyte growth. Its second-generation Mozaic 4+ HAMR platform delivers up to 44TB per drive—more than 30% higher capacity than earlier versions—while requiring minimal material changes and leveraging advanced laser and photonics technology for scalable manufacturing.  Following initial shipments in March, Mozaic 4 is expected to comprise the majority of HAMR exabyte shipments by the end of 2026. Mozaic 5 remains on track for late-2027 qualification with up to 50TB capacity, providing customers with a clear upgrade path within existing power and space constraints. As HAMR production expands beyond hyperscale customers into enterprise and edge markets, it anticipates additional cost and operational efficiencies over time.

Image Source: Zacks Investment Research

Seagate’s capital allocation strategy allows the company to use its earnings growth and strong cash flow generation to further strengthen the balance sheet while increasing long-term shareholder returns. In the third quarter of fiscal 2026, STX generated $1.1 billion in operating cash flow and $953 million in free cash flow. The company retired about $641 million in debt and $191 million to shareholders through dividends and buybacks, while also declaring a quarterly dividend of 74 cents per share. It expects free cash flow to improve through the rest of 2026, supported by steady demand, operational efficiency and disciplined spending. Fiscal 2026 capex is expected to remain within its 4–6% of revenue target range as the company continues scaling HAMR technology.

Nonetheless, Seagate’s growth historically has been cyclical. Revenue and earnings often fluctuate depending on PC demand, enterprise spending cycles and storage pricing trends. While AI demand could reduce some cyclicality, the business remains heavily tied to hardware spending patterns. It operates in a highly competitive hardware market where pricing pressure and component costs can negatively impact margins. In addition, Seagate carries a sizable debt load, with $3.86 billion in long-term debt versus $1.15 billion in cash as of April 2026, reflecting its acquisition- and investment-driven growth strategy.

The Case for NTAPSlower enterprise IT spending, intense competition from cloud-native providers and execution challenges tied to its ongoing cloud transformation strategy are hurting NTAP’s prospects. Continued investments in cloud and AI initiatives could also pressure margins in the near term.

Management continues to see cautious customer spending amid an uncertain global macroeconomic environment. The U.S. public sector remained a headwind earlier in the fiscal year, with demand hurt significantly in the second quarter due to a government shutdown. Conditions improved somewhat in the third quarter, but the segment only performed in line with the company’s lowered expectations and has yet to fully recover. While management sees early signs of improvement heading into the fourth quarter, it believes it is still too soon to call for a sustained rebound in U.S. public sector demand.

NetApp continues to acquire a large number of companies. While this improves revenue opportunities, the move increases integration risks. Large acquisitions have negatively impacted the balance sheet in the form of high levels of goodwill and net intangible assets, which totaled $2.78 billion or 27.9% of total assets as of Jan. 23, 2026. Furthermore, NetApp faces stiff competition from bellwethers such as HP, Dell, IBM and Oracle. NetApp’s competitors are revamping their product lines with faster and more efficient products.

Image Source: Zacks Investment Research

However, recent quarterly results showed strong momentum in all-flash array revenue and cloud storage services, highlighting growing enterprise demand for hybrid cloud and AI-ready infrastructure. Unlike Seagate, NetApp benefits from more recurring software and subscription revenue streams. This improves visibility and reduces earnings volatility. The company is also benefiting from enterprise AI adoption, where organizations need intelligent ways to organize, access and secure massive datasets used for AI workloads.

NetApp also returns capital through dividends and repurchases, though its yield is generally lower than Seagate’s. The company returned $303 million to its shareholders as dividend payouts and share repurchases in the fiscal third quarter. NetApp returned $200 million to its shareholders through share repurchases and distributed $103 million in dividends. The company returned $1.57 billion to its shareholders as dividend payouts and share repurchases in fiscal 2025. 

Share Price Performance for STX & NTAPOver the past year, STX has registered gains of 620.8% while NTAP rose 39.4%.

Image Source: Zacks Investment Research

Valuation ComparisonGoing by the price/earnings ratio, NTAP’s shares currently trade at 19.32 forward earnings, compared with 34.59 for STX.

Image Source: Zacks Investment Research

From a value perspective, NTAP may appear cheaper on traditional metrics such as price-to-earnings ratios. However, cheaper does not always mean better. Investors must consider the quality and sustainability of future growth.

How Do Zacks Estimates Compare for STX & NTAP?STX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2026 have increased 15.6% to $14.89 over the past 60 days, while the same for fiscal 2027 has gone up 34.9% to $26.34.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NTAP’s earnings remains unaltered over the past 60 days.

Image Source: Zacks Investment Research

STX or NTAP: Which Stock is the Better Investment?Seagate’s investment thesis increasingly revolves around AI-driven storage demand. HDDs remain significantly cheaper than solid-state drives for bulk storage, making Seagate an important supplier for hyperscale cloud providers. The company is also pushing advanced HAMR technology, which allows much higher storage densities. This innovation could support long-term capacity growth and improve Seagate’s competitive positioning. Software and subscription-heavy businesses generally produce stronger operating margins than hardware manufacturers. NetApp’s transition toward software-defined infrastructure and cloud services has steadily improved its earnings profile.

Seagate, meanwhile, operates in a highly competitive hardware market where pricing pressure and component costs can significantly affect margins. That said, Seagate is known for strong cash flow generation during upcycles. The company has historically returned substantial capital to shareholders through dividends and buybacks. Seagate continues to offer encouraging shareholder returns, appealing to income-oriented investors. It also remains attractive to value and income investors, particularly if AI-driven storage demand accelerates faster than expected. 

STX at present sports a Zacks Rank #1 (Strong Buy), while NTAP has a Zacks Rank #4 (Sell). Consequently, in terms of Zacks Rank, STX seems to be a better pick. You can see the complete list of today’s Zacks #1 Rank stocks here.

I am reiterating Seagate with a strong buy because my original thesis has not changed. It has improved. I argued that HAMR would change STX's earnings power. That view is being confirmed by Mozaic 4+ qualifications, stronger hyperscale demand, and record margin performance. The main growth drivers are nearline capacity allocation through CY27, Mozaic 4+ becoming a larger part of HAMR exabyte shipments, and AI-driven data center storage demand.

A month has gone by since the last earnings report for Seagate (STX - Free Report) . Shares have added about 35.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Seagate due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Seagate's Q3 Earnings Beat EstimatesSeagate reported third-quarter fiscal 2026 non-GAAP earnings of $4.10 per share, beating the Zacks Consensus Estimate of $3.50 and exceeding the high end of management’s guidance of $3.40 (+/- 20 cents).

The bottom line expanded 115% year over year and 32% sequentially on the back of the strong execution of its strategic objectives and effective use of the technology roadmap to support growing demand.

Non-GAAP revenues of $3.11 billion exceeded the Zacks Consensus Estimate by 5.7%. Revenues also surpassed the high end of guidance, increasing 44% year over year.

It is operating in a very strong demand environment, especially in data center markets. Management noted that the shift toward inference-driven workloads, agentic AI and multimodal applications is leading to exponential growth in data creation and storage needs.

The March quarter witnessed steady growth in high-capacity nearline drive demand across global cloud and hyperscaler customers. Nearline products accounted for roughly 90% of total exabyte shipments, with capacity largely allocated through calendar 2027.

Modern data centers increasingly need solutions that balance performance with cost efficiency, a trend that strongly favors Seagate’s roadmap. The company’s areal-density-driven strategy aligns well with the long-term growth of AI-generated data, suggesting sustained demand beyond short-term cycles. 

The company’s HAMR (Heat-Assisted Magnetic Recording) technology and Mozaic platform remain central to its long-term growth strategy. It began revenue shipments of Mozaic 4 in late March, which can deliver up to 44 terabytes per drive, representing more than 30% higher capacity compared with the first-generation drives. Seagate noted that Mozaic 4+ is projected to constitute the majority of its HAMR exabyte shipments exiting calendar 2026. With the development of Mozaic 5 underway, it targets to commence qualification shipments of the same in late calendar 2027.

Revenues by End MarketBeginning first-quarter fiscal 2026, it reports revenues across two key markets — Data Center, encompassing nearline products and systems sold to cloud, enterprise and VIA customers, and Edge IoT, covering consumer and client-focused segments, including network-attached storage.

The data center segment accounted for 80% of total revenues, at $2.5 billion, representing a 12% sequential increase and 55% year-over-year growth. The uptick is driven by continued strong demand from global cloud customers and sequential improvement across enterprise OEM markets.

The edge IoT segment accounted for the remaining 20% of revenues, at $612 million, up 12% year over year and 2% sequentially. Higher supply and NAND prices, particularly in the client and consumer markets, offset the typical seasonal slowdown in March.

Exabyte Shipments in DetailIn the reported quarter, Seagate shipped 199 exabytes of HDD storage, up 39% year over year and 5% sequentially. The data center market accounted for 88% of shipments, driven by sustained demand from cloud and enterprise clients.

The company shipped 175 exabytes to data center customers, up 6% sequentially and 47% year over year.

Margin DetailsNon-GAAP gross margin reached a record 47%, rising about 480 basis points (bps) quarter over quarter and roughly 1,080 bps year over year, driven by favorable product mix and continued pricing initiatives.

Non-GAAP operating expenses were $296 million, up 8% year over year.

Non-GAAP income from operations totaled $1.2 billion, up from $507 million a year ago. Non-GAAP operating margin increased to 37.5% from 23.5% year over year.

Non-GAAP adjusted EBITDA totaled $1.2 billion, which more than doubled from the prior-year quarter.

Balance Sheet and Cash FlowAs of April 3, 2026, cash and cash equivalents were $1.146 billion compared with $1.046 billion as of Jan. 2.

Long-term debt (including the current portion) was $3.86 billion as of April 3, 2026, compared with $4.5 billion as of Jan. 2.

Cash flow from operations was $1.1 billion compared with $723 million in the previous quarter. Free cash flow amounted to $953 million, up 57% sequentially, being the highest level in a decade, as highlighted by Seagate. 

In the March quarter, it returned $191 million to its shareholders via dividends. It retired $641 million in debt, including exchangeable senior notes (using cash on hand) worth $600 million due 2028, reducing potential dilution and preserving cash flexibility for future share repurchases.

Strong Fiscal Q4 Business OutlookIt does not expect any material impact on its business amid ongoing geopolitical tensions, including in the Middle East. For the fiscal fourth quarter, it expects revenues of $3.45 billion (+/- $100 million). At the midpoint, this indicates a 41% year-over-year improvement.

Non-GAAP earnings are expected to be $5.00 per share (+/- 20 cents). For the quarter, non-GAAP operating expenses are expected to be around $295 million. At the midpoint of revenue guidance, non-GAAP operating margin is projected to increase in the low 40% range.

Management also revised its long-term revenue outlook, now targeting a minimum of 20% annual revenue growth over the next few years, up from prior expectations of low to mid-teens growth.

It expects free cash flow ("FCF") generation to improve through the remaining quarter in calendar 2026.  Sustained demand, operational efficiencies and capital discipline are likely to support FCF growth.

The company will maintain capital discipline while continuing the transition and ramp-up of HAMR technology, with fiscal 2026 capital spending expected to remain within its target range of 4-6% of revenues.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 36.13% due to these changes.

VGM ScoresAt this time, Seagate has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Seagate has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerSeagate is part of the Zacks Computer - Integrated Systems industry. Over the past month, IBM (IBM - Free Report) , a stock from the same industry, has gained 12.4%. The company reported its results for the quarter ended March 2026 more than a month ago.

IBM reported revenues of $15.92 billion in the last reported quarter, representing a year-over-year change of +9.5%. EPS of $1.91 for the same period compares with $1.60 a year ago.

IBM is expected to post earnings of $2.95 per share for the current quarter, representing a year-over-year change of +5.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for IBM. Also, the stock has a VGM Score of D.

Stanley Druckenmiller just made a few portfolio moves that Wall Street is watching rather closely.

The billionaire founder of Duquesne Family Office – widely regarded as the most influential active money manager since Warren Buffett’s retirement – has completely exited his position in Alphabet and piled into five AI hardware stocks instead.

His latest 13F filing, covering holdings as of March 31st, reveals a bet on the physical infrastructure that powers artificial intelligence (AI), not the software giants who ride it.

Names Druckenmiller has invested in include SanDisk, Micron, Seagate, Broadcom, and Arm.

Duquesne has offloaded its entire stake in Alphabet, selling all 385,000 Class A shares worth nearly $153 million – a position the billionaire had just built up by 277% in the prior quarter.

The exit looks like disciplined profit-taking, given Google, in the two-plus quarters Druckenmiller held the stock, appreciated by more than 50%.

Following this surge, Google shares are trading at roughly 28x forward earnings, versus 17x only just a year ago.

Druckenmiller has also been openly skeptical about AI valuations – saying he believes “AI might be a little overhyped now” and that “AI could rhyme with the internet.”

And when the valuation no longer fits the thesis, the billionaire moves on – fast.

Duquesne opened a new position in SanDisk, buying 38,155 shares worth about $24.2 million – and the timing was exceptional.  

SNDK’s Q3 report was the giveaway; revenue hit $6 billion versus $4.7 billion estimates, up 251% year-over-year, with data center sales of $1.5 billion, up 645% year-over-year.

CEO David Goeckeler described the results as “a fundamental inflection point,” citing a structural shift toward AI inference workloads that demand high-speed NAND flash at scale.

With hyperscalers locking in multi-year supply agreements, SanDisk is no longer just a consumer storage brand – it has become a critical node in the AI infrastructure stack.

Druckenmiller’s bet on Micron stock may prove to be his sharpest call of the quarter.

Micron delivered Q2 revenue of $23.9 billion – a 196% increase year-over-year – cementing its position as one of the biggest beneficiaries of the AI boom.

The numbers didn't just beat estimates – they demolished them. Earnings per share (EPS) came in at $12.07, far above the $9.33 consensus, while revenue exceeded forecasts by nearly $3.7 billion.

And the outlook is even more striking: for the current quarter, MU guided for about $33.5 billion in revenue, implying year-over-year growth of over 200%.

As CEO Sanjay Mehrotra put it, Micron is an essential AI enabler and the only US-based memory manufacturer – a strategic asset in a supply-constrained world.

Old-fashioned spinning hard drives sound like a strange AI play, but Druckenmiller saw something others missed; Duquesne bought 50,700 Seagate shares valued at about $19.9 million.

The thesis is playing out emphatically. Seagate's Q3 delivered revenue of $3.1 billion – up 44% year-over-year, with adjusted earnings per share of $4.10 – far ahead of analyst expectations.

Better yet, demand visibility is “extraordinary”: nearline capacity is nearly fully allocated through calendar 2027, with build-to-order contracts being finalized through the end of fiscal 2027.

Moreover, the top three global cloud providers' remaining purchase obligations nearly doubled to about $1.1 trillion; Seagate is essentially sold out well into next year.

Druckenmiller initiated a significant new stake in Broadcom, purchasing roughly 196,000 shares worth $60.7 million – the largest single new position in the batch.

Broadcom is the dominant designer of custom AI accelerators for hyperscalers like Google and Meta, offering a cost-effective alternative to Nvidia's off-the-shelf GPUs.

Q1 AI revenue hit $8.4 billion, up 106% year-over-year, above the company's own forecast – and the acceleration isn't slowing: AVGO guided for AI semiconductor revenue of $10.7 billion in Q2, with total Q2 revenue expected to reach $22 billion, up 47% year-over-year.

CEO Hock Tan has stated plainly that AI revenue growth is accelerating, with the company eyeing $100 billion in cumulative AI-related sales by 2027.

Rounding out the five picks is Arm Holdings, the British chip-design firm whose instruction set architecture sits inside virtually every modern processor.

Duquesne opened a new position of 106,700 ARM shares worth about $16.1 million.

ARM is benefiting structurally from AI’s spread across every compute environment.

For the full fiscal year, Arm posted record revenue of $4.9 billion, with royalty revenue up 21% and licensing revenue up 25%, its third consecutive year of more than 20% revenue growth since going public.

Most tellingly, data center royalties more than doubled year-over-year as cloud companies increasingly turn to Arm-based custom chips.

With AI moving from training to inference at the edge and in data centers alike, Arm's architecture is everywhere – and Druckenmiller is betting it stays that way.

Seagate Technology Holdings plc (STX) Presents at Bank of America 2026 Global Technology Conference Transcript

Key Takeaways MU is one of five AI-focused growth stocks highlighted for June as infrastructure demand expands.DELL sees strong demand for AI servers and targets $60 billion in fiscal 2027 AI server sales.FIX is gaining from AI-driven data center cooling needs, supporting high-margin HVAC growth. U.S. stock markets closed at record highs in May, supported by astonishing artificial intelligence (AI) trade. For the past three and a half years, AI trade has single-handedly driven the Wall Street bull run. What is surprising is that as days progress, AI trade is gaining more strength despite the highly overstretched valuation of this space. 

AI infrastructure trade is now expanding from generative AI-based chips to memory and storage devices as well as servers and racks. Moreover, agentic AI is expanding the scope of AI infrastructure providers in the physical layer across industries. 

At this stage, we have identified five AI-centric growth stocks that investors should purchase to strengthen their portfolios in June. Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel prices higher in the future.

The stocks are: Micron Technology Inc. (MU - Free Report) , Sandisk Corp. (SNDK - Free Report) , Seagate Technology Holdings plc (STX - Free Report) , Dell Technologies Inc. (DELL - Free Report) and Comfort Systems USA Inc. (FIX - Free Report) . Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks in the past three months.

Image Source: Zacks Investment Research

Micron Technology Inc.Micron Technology is benefiting from the rapidly expanding AI-driven memory and storage markets. MU has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions. Record sales in the data center end market and accelerating HBM adoption have been driving MU’s Dynamic Access Random Memory (DRAM) revenues higher.

The growing adoption of AI servers is reshaping the DRAM market as these systems require significantly more memory than traditional servers. This is boosting demand for both high-capacity DIMMs (Dual In-line Memory Module) and low-power server DRAM.

Micron Technology has an expected revenue and earnings growth rate of more than 100% each, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.2% over the last seven days.

Sandisk Corp.Sandisk — a leading flash and advanced memory technology innovator — is set to maintain its astonishing momentum. SNDK has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads. 
AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features. 

This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation. SNDK’s BiCS8 quad-level cell storage product continues to advance through qualification with two major hyperscalers. The extended joint venture agreement with Kioxia Corporation through December 2034 positions Sandisk favorably in the AI memory and storage space. 

Sandisk has an expected revenue and earnings growth rate of more than 100%, each, for next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 76.1% over the last 60 days.

Seagate Technology Holdings plcSeagate Technology has been benefiting from AI-led storage demand, a robust technology roadmap anchored in Mozaic and HAMR and disciplined execution focused on converting demand into profitable growth and long-term value creation. 

STX highlighted that the company is entering a “new era of structural growth” driven by strong AI-led demand, the rising adoption of Mozaic products and disciplined execution focused on expanding margins, cash flow and long-term value.

HDDs remain significantly more cost-effective for bulk storage—especially critical in hyperscale data centers supporting AI infrastructure. Seagate is well-positioned to capture this expanding opportunity through a technology strategy focused on increasing areal density rather than unit volumes, enabling a more capital- and manufacturing-efficient path to scale while improving cost and power efficiency per terabyte. 

This supports STX’s target of mid-20% exabyte growth. Its Mozaic 4+ platform, a second-generation HAMR product, delivers up to 44TB per drive — more than 30% higher capacity than earlier versions — achieved with minimal changes to materials, while integrating advanced laser and photonics technology for precision manufacturing at scale. 

Seagate Technology has an expected revenue and earnings growth rate of 33.9% and 76.9%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 34.3% in the last 60 days.

Dell Technologies Inc. Dell Technologies is benefiting from strong demand for AI-optimized servers driven by the ongoing digital transformation and heightened interest in generative AI applications. Its PowerEdge XE9680 AI-optimized server is much in demand. 

DELL’s advanced AI-optimized servers, including the PowerEdge XE9780 and 9780L platforms supporting up to 256 NVIDIA Corp. (NVDA) HGX B300 GPUs per rack, the XE9712 with NVIDIA GB300 NVL72, and the XE7745 supporting NVIDIA RTX Pro 6000 Blackwell GPUs, are noteworthy. 

Aside from NVIDIA, Dell Technologies has partnerships with Advanced Micro Devices Inc. (AMD), Microsoft Corp. (MSFT) and Meta Platforms Inc. (META) to name a few. DELL said that the company currently has more than 5,000 AI server customers, including neoclouds, sovereign clients and enterprises.

On May 27, the Pentagon announced a five-year contract with Dell worth $9.7 billion for Microsoft 365 productivity services. As a result, management is hopeful that its fiscal 2027 AI server sales will reach $60 billion.

Dell Technologies has an expected revenue and earnings growth rate of 47.4% and 41.2%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 10.7% in the last seven days.

Comfort Systems USA Inc.Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities.

The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units. 

This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche. 

Comfort Systems USA has an expected revenue and earnings growth rate of 30.5% and 49.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% in the last seven days.

May 31, 2026 21:43 ET  | Source: Topicus.com Inc.

TORONTO, May 31, 2026 (GLOBE NEWSWIRE) -- Topicus.com Inc. (TSXV: TOI), acting through its subsidiary TSS Europe B.V. (“TSS”), today submitted a revised non-binding indicative proposal to acquire ReadyTech Holdings Limited (ASX: RDY) (“ReadyTech”) by way of a scheme of arrangement for cash consideration of $2.00 per share (the “Scheme Consideration”), or in the alternative, an off-market takeover bid with a 50.1% minimum acceptance condition at a cash consideration of $1.75 per share (the "Takeover Consideration") (together, the "Revised Proposal")1. All references herein to currency are in Australian dollars.

The Revised Proposal constitutes a variation to the original non-binding indicative offer tabled with the ReadyTech Board on the evening of Friday 29 May, 2026 (which was only for an off-market takeover at a cash consideration of $1.75 per share with a 50.1% minimum acceptance condition) and responds to feedback received from the ReadyTech Board regarding preferred offer structure and price in discussions over the weekend.

Under the Revised Proposal, subject to the conditions outlined below, the off-market takeover offer is proposed to be made simultaneously with the scheme of arrangement and would be conditional on the scheme not proceeding as a result of the scheme resolution failing to obtain the requisite approval of ReadyTech shareholders.

The Revised Proposal offers the optionality to ReadyTech’s shareholders for greater individual autonomy in opting to pursue liquidity at a certain valuation, whilst representing a compelling premium.

The Scheme Consideration of $2.00 per share represents:

a 49.3% premium to ReadyTech’s closing share price of $1.34 on May 29, 2026, being the last trading day prior to the submission of this Revised Proposal;a 47.5% premium to ReadyTech’s one-month VWAP of $1.36;a 58.9% premium to ReadyTech’s three-month VWAP of $1.26; anda 57.5% premium to the VWAP of ReadyTech’s share price since 26 February, 2026, the date on which ReadyTech released its FY26 half year results. The Takeover Consideration of $1.75 per share represents:

a 30.6% premium to ReadyTech’s closing share price of $1.34 on May 29, 2026, being the last trading day prior to the submission of the Revised Proposal;a 29.1% premium to ReadyTech’s one-month VWAP of $1.36;a 39.0% premium to ReadyTech’s three-month VWAP of $1.26; anda 37.9% premium to the VWAP of ReadyTech’s share price since 26 February, 2026, the date on which ReadyTech released its FY26 half year results. TSS would like to progress the Revised Proposal on a recommended basis to deliver a superior outcome for all ReadyTech shareholders. TSS is committed to working with the ReadyTech Board toward that end.

The Revised Proposal is non-binding and is subject to a number of conditions including:

completion of satisfactory confirmatory due diligence by TSS;the positive recommendation of ReadyTech’s Board of Directors (or a committee of directors formed to consider the Revised Proposal);approval of the Board of Directors of Topicus.com Inc.;any regulatory or government approvals required; andexecution of a Confidentiality Process and Exclusivity Deed. TSS looks forward to the ReadyTech Board's response.

The Revised Proposal and any announcements or filings in connection with this document are not, and cannot be considered to be, a notification or a public announcement of an intention to make a takeover offer pursuant to section 631 of the Corporations Act 2001 (Cth).

TSS has retained Rothschild & Co as financial adviser, Allens as legal adviser, and New World Communications as communications adviser.

For questions related to the Revised Proposal, contact:

Justin Clark, New World Communications – 0429 361 117

Email: [email protected]

For all other information related to Topicus, contact:

Topicus.com Inc.

Jamal Baksh, Chief Financial Officer

416-861-9677

Email: [email protected]

www.topicus.com

About Topicus.com Inc.

TSS Europe B.V. (TSS) is a subsidiary of Topicus.com Inc., listed on the TSX Venture Exchange (TSXV: TOI), a leading provider of vertical market software and vertical market platforms to clients in public and private sector markets. Operating and investing in countries and markets across the world with long-term growth potential, Topicus.com Inc. acquires, builds and manages leading software companies providing specialized, mission-critical and high-impact software solutions that address the particular needs of customers.

Topicus.com comprises more than 215 business units across more than 40 vertical markets, with operations in 35 European countries as well as the US and Asia. 

Forward Looking Statements

Certain statements herein may be "forward looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual events to be materially different from any future events expressed or implied by such forward -looking statements. Words such as "may", "will", "expect", "believe", "plan", "intend", "should", "anticipate", "would", "propose" and other similar terminology are intended to identify forward looking statements. Forward looking statements in this press release include, but are not limited to, statements regarding the Revised Proposal, including satisfaction of the conditions to the Revised Proposal, the making of an off-market takeover bid or scheme of arrangement, and outcomes of the Revised Proposal. Any forward looking statements reflect current assumptions and expectations regarding future events and are made as of the date hereof and Topicus.com Inc. assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Note 1: The Revised Proposal assumes the issued share capital of ReadyTech comprises 123,564,107 ordinary shares outstanding and all other ReadyTech securities (comprising 3,118,329 performance rights on issue as of 16 December 2025) remain unvested and lapse. Other assumptions and terms of the Revised Proposal have been outlined in full in the Non-Binding Indicative Offers provided to ReadyTech

May 13, 2026 08:00 ET  | Source: SailPoint Technologies, Inc.

AUSTIN, Texas, May 13, 2026 (GLOBE NEWSWIRE) -- SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, will report its fiscal first quarter 2027 financial results and outlook before the US markets open on Tuesday, June 9, 2026.

SailPoint will host a conference call that day at 8:30 a.m. Eastern Time to discuss the results and outlook. A live webcast of the conference call and the financial results press release will be available on SailPoint’s website at https://investors.sailpoint.com. An audio replay of the conference call will be available on the investor relations website for one year.

Additionally, SailPoint will host an Investor Day on Tuesday, June 16, 2026, at 9 a.m. Eastern Time in New York. This half-day program will feature presentations by SailPoint executives who will provide an overview of the company’s strategy, recent innovations, and a financial update.

The event will be made available via webcast on the Investor Relations section of the SailPoint website at https://investor.sailpoint.com/. An audio replay of the investor day will be available on the investor relations website for one year.

About SailPoint
SailPoint (Nasdaq: SAIL) is defining the new era of adaptive identity security. In a world where non-human identities now significantly outnumber humans, our AI-powered platform unifies identity, security, and data intelligence to protect today’s enterprise from advanced identity-based threats. We deliver the identity solution that spans both the breadth of identities and the depth of context needed to drive real-time access with confidence. Built on principles like zero-standing privilege and contextualized risk, our SailPoint platform transforms identity from a point of vulnerability into a powerful security advantage. Trusted by many of the world's leading organizations, SailPoint secures the enterprise with intelligent, autonomous identity security.

Investor Relations Contact
Scott Schmitz, SVP IR
[email protected]

Media Relations Contact
Shannon Paulk, Sr. Manager, Corporate Communications
[email protected]

SailPoint, Inc. (SAIL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on June 9, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +300%.

Revenues are expected to be $276.25 million, up 19.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for SailPoint, Inc. ?For SailPoint, Inc. , the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.88%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that SailPoint, Inc. will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that SailPoint, Inc. would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SailPoint, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerDocuSign (DOCU - Free Report) , another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $1 for the quarter ended April 2026. This estimate points to a year-over-year change of +11.1%. Revenues for the quarter are expected to be $824.75 million, up 8% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for DocuSign has remained unchanged. Nevertheless, the company now has an Earnings ESP of -2.00%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that DocuSign will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Investors will scrutinize whether Oracle stays committed to the heavy AI-related capital spending behind its half-trillion-dollar backlog, and how Adobe plans to answer the rising threat from generative AI — its stock is down nearly 30% year-to-date, echoing a similar slide in 2025.

But the pair is not where the options market sees the biggest moves.

Eight other stocks with market caps above $2 billion are set for sharp post-earnings reactions, according to Benzinga Pro data, with implied swings ranging from 8.62% to 18.24%.

Implied moves measure the size of the single-session swing, up or down, that the options market expects based on at-the-money straddle pricing ahead of each earnings date. A higher reading means traders are paying up for protection or positioning into a binary result.

Here is the full ranking, from the smallest expected move to the largest.

10. Academy Sports and Outdoors, Inc. | Mkt Cap: $3.37B |  Implied Move: 8.62% Academy Sports and Outdoors, Inc. (NASDAQ:ASO) reports on Tuesday, June 9, before the market opens, with first-quarter fiscal 2026 results.

Analysts expect $0.91 in earnings per share on revenue of $1.44 billion, implying year-over-year earnings growth around 21% and a top line up roughly 7% for the sporting-goods and outdoor retailer.

The 8.62% implied move is the smallest on this week’s list, about $4.46 a share, equating to roughly $291 million of market value at stake. Academy’s print is an early read on how the value-focused discretionary shopper is holding up as new-store growth continues across the South.

The stock is up about 3% year-to-date near $52, one of the steadier names on the list.

9. Adobe Inc. | Mkt Cap: $101.12B  |  Implied Move: 8.80%Adobe Inc. (NASDAQ:ADBE) reports second-quarter fiscal 2026 results on Thursday, June 11, after the close.

The Street is looking for $5.82 per share on revenue of $6.46 billion, with earnings climbing roughly 15% and revenue up about 10% year-over-year.

The 8.80% implied move is the second-smallest in percentage terms but, against Adobe’s size, the second-largest dollar exposure on the list — roughly $8.9 billion of market value on a single session.

That gap is the whole Adobe debate: the business still throws off software-like cash, while the stock trades as if generative AI will permanently lower the value of its creative bundle.

Adobe is down about 29% year-to-date near $257, echoing a similar slide in 2025, though it bounced 6% to 8% in early June as money rotated back into beaten-down software.

8. Core & Main, Inc. | Mkt Cap: $9.80B  |  Implied Move: 11.04%Core & Main, Inc. (NYSE:CNM) reports first-quarter fiscal 2026 results on Wednesday, June 10, before the market opens.

Consensus calls for $0.67 per share on revenue of $1.91 billion, roughly flat with the year-ago quarter.

An 11.04% implied move, about $5.78 a share, puts roughly $1.1 billion of market value in play.

Core & Main distributes pipes, valves, hydrants and storm-drainage products to municipalities and contractors, and just logged its 16th consecutive year of sales growth — making this print a clean read on U.S. water and replacement-infrastructure spending.

The stock is essentially flat year-to-date near $52, supported by an ongoing buyback and bolt-on acquisitions.

7. Oracle Corp. | Mkt Cap: $631.21B | Implied Move: 11.22% Oracle Corp. (NYSE:ORCL) reports fourth-quarter fiscal 2026 results on Wednesday, June 10, after the close — the most consequential print of the week.

Analysts model $1.96 per share on revenue of $19.10 billion, with earnings up about 15% and revenue up roughly 20% year-over-year.

The 11.22% implied move against Oracle’s $631 billion market cap dwarfs everything else on the list — marking a staggering $71 billion of market value swinging on a single session.

The number that matters is the backlog: remaining performance obligations hit $553 billion last quarter, up 325% year-over-year, as Oracle signed long-dated AI-capacity deals and reframed itself as something closer to an AI real-estate landlord.

With capital spending guided near $50 billion, the June 10 test is whether that backlog is converting into delivered capacity, revenue and cash, not just bigger commitments.

Oracle trades near $212, up about 12% year-to-date and roughly 16% over the past month into the print.

The market already believes the AI demand is there. The question is whether Oracle can build fast enough to serve it without overborrowing.

6. Chewy, Inc. | Mkt Cap: $8.49B  | Implied Move: 11.31%Chewy, Inc. (NYSE:CHWY) delivers first-quarter fiscal 2026 numbers on Wednesday, June 10, before the bell.

The Street is looking for $0.28 per share on revenue of $3.37 billion, with earnings up about 22% and the top line up roughly 8% year-over-year.

Chewy is one of 2026’s hardest-hit consumer names, down about 38% year-to-date to near $21 and trading close to a 52-week low as softer pet-category spending bites.

The company is pushing deeper into veterinary care with a planned acquisition of Modern Animal, and autoship now drives about 84% of sales — the recurring-revenue engine investors will watch for signs the consumer is pulling back.

5. Uranium Energy Corp. | Mkt Cap: $6.39B  |  Implied Move: 11.72%Uranium Energy Corp. (NYSE:UEC) reports fiscal third-quarter 2026 results on Tuesday, June 9, before the market opens.

Analysts model a loss of $0.05 per share on revenue of just $4.25 million.

The uranium miner has become a favored proxy for the nuclear-power revival, as AI data centers send hyperscalers hunting for reliable round-the-clock electricity.

The print itself rarely moves on earnings — it moves on production ramp, contracting and the spot uranium price.

The stock is up about 11% year-to-date, near $14.

4. United Natural Foods, Inc. | Mkt Cap: $3.41B  |  Implied Move: 12.68%United Natural Foods, Inc. (NYSE:UNFI) reports fiscal third-quarter 2026 results on Tuesday, June 9, before the market opens.

Forecasters peg earnings at $0.78 per share on revenue of $7.80 billion for the grocery distributor, the primary supplier to Whole Foods Market — earnings are seen rising about 75% year-over-year, even as revenue slips roughly 3%, the margin story in a single line.

This print laps the cyberattack that disrupted United Natural Foods’ systems in June 2025, setting up an easy year-over-year comparison, while management has been deleveraging ahead of schedule and exiting low-margin business.

With full-year net sales guided to $31.6 billion to $32.0 billion, the question is whether the margin gains can stick.

Quietly, it has been the best performer on this week’s list, up about 66% year-to-date as it recovered from the cyberattack and rebuilt its balance sheet.

3. RH | Mkt Cap: $2.80B  |  Implied Move: 14.75%  RH (NYSE:RH), the luxury home-furnishings retailer formerly known as Restoration Hardware, reports first-quarter fiscal 2026 results on Thursday, June 11, after the close.

Benzinga Pro data show a consensus loss of $2.12 per share on revenue of $793.05 million — a swing into the red from a small profit a year ago, as tariffs on Asian-sourced furniture and a weak high-end housing market squeeze margins.

The 14.75% implied move puts around $413 million of market value at stake.

RH tumbled to a six-year low after its prior report and has absorbed a string of price-target cuts even as it pushes an aggressive international expansion with new galleries in Milan, Paris and London.

The stock is down about 19% year-to-date and remains one of the market’s clearest bets on whether even wealthy households are pulling back.

2. SailPoint, Inc. | Mkt Cap: $10.32B  |  Implied Move: 17.71% SailPoint, Inc. (NASDAQ:SAIL) reports first-quarter fiscal 2027 results on Tuesday, June 9, before the market opens.

Analysts model $0.04 per share on revenue of $276.02 million, with revenue up roughly 20% year-over-year and earnings swinging sharply higher off a small base.

The 17.71% implied move translates to roughly $1.8 billion of market value on the line. SailPoint, the identity-security vendor taken private by Thoma Bravo in 2022 and re-listed at $23 in early 2025, surpassed $1 billion in annual recurring revenue last quarter.

Its pitch is timely: as AI agents proliferate inside enterprises, every one of them becomes a new identity to govern — a tailwind it is racing to monetize against Okta and CyberArk.

The stock is down about 9% year-to-date near $18, still below its re-IPO price.

1. Navan, Inc. | Mkt Cap: $5.45B  |  Implied Move: 18.24%Navan, Inc. (NASDAQ:NAVN) tops the list with first-quarter fiscal 2027 results due Wednesday, June 10, after the close — only its third quarterly report since its October 2025 IPO.

The Street is modeling a breakeven quarter, a loss of roughly a penny per share, on revenue of $205.27 million.

Options are pricing an 18.24% swing — the largest implied move of the week, about $3.87 a share — translating to roughly $994 million of market value at potential swing on a single session.

Navan runs an AI-powered corporate travel and expense platform, and its stock has been a rollercoaster: it was priced at $25, sank as low as the $10 range, and has since rebuilt to near $20, with TD Cowen lifting its target to $28 last week.

That round trip is exactly why the options market is bracing — a recent IPO still finding its footing, heading into a print where the guidance, not the quarter, sets the next move.

Photo: JRdes / Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

SailPoint posts fiscal first-quarter adjusted earnings that beat analysts' estimates.

SailPoint, Inc. (SAIL - Free Report) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +17.65%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

SailPoint, Inc. , which belongs to the Zacks Internet - Software industry, posted revenues of $280.14 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.41%. This compares to year-ago revenues of $230.47 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

SailPoint, Inc. shares have lost about 12.6% since the beginning of the year versus the S&P 500's gain of 8.2%.

What's Next for SailPoint, Inc. ?While SailPoint, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for SailPoint, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $310.79 million in revenues for the coming quarter and $0.32 on $1.27 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Paychex (PAYX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026.

This payroll processor and human-resources services provider is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +10.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Paychex's revenues are expected to be $1.6 billion, up 12.4% from the year-ago quarter.

Three Stocks Under $20 With Massive Upside PotentialSailPoint NASDAQ: SAIL reported a stronger-than-expected start to fiscal 2027, with management pointing to continued SaaS migration activity, larger customer commitments and growing demand for identity security tied to artificial intelligence agents and other non-human identities.

On the company’s fiscal first-quarter earnings call, founder and CEO Mark McClain said SailPoint delivered “another quarter of robust top and bottom-line growth” and argued that identity security has become a central issue for enterprises adopting AI. Chief Financial Officer Brian Carolan said annual recurring revenue, revenue and adjusted operating margin all came in above the high end of the company’s guidance.

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ARR and SaaS Growth Lead First-Quarter Results SailPoint Had a Week to Forget—Is This the Buying Window?SailPoint ended fiscal Q1 2027 with annual recurring revenue of $1.163 billion, up 26% year over year. SaaS ARR reached $781 million, growing 36% from the prior year. Carolan said net new SaaS ARR was $35 million, up 5% as reported and more than 30% on a constant-currency basis.

Revenue for the quarter was $280 million, an increase of 22% year over year, while SaaS revenue grew 35%. Dollar-based net revenue retention was 113%.

Why SailPoint May Cruise Past Cybersecurity Rivals in 2025The company also reported an adjusted operating margin of 13.5%, representing approximately 330 basis points of year-over-year expansion. SailPoint generated $38 million in cash from operating activities and $33 million in free cash flow, equal to an 11.6% free cash flow margin. The company ended the quarter with $391 million in cash and cash equivalents.

Carolan said the business showed “balanced growth,” with contributions from both new customers and expansion within the existing base. Average ARR per customer rose 18% year over year to more than $350,000, and SailPoint ended the quarter with 225 customers generating more than $1 million in ARR, up 32% year over year.

AI Agents and Non-Human Identities Become Central Theme Much of the call focused on SailPoint’s view that AI adoption is creating a new identity security challenge for enterprises. McClain said autonomous agents and other non-human identities increasingly outnumber human identities inside companies, creating risks around excessive privileges, unmanaged access and machine-speed actions.

According to McClain, non-human identities accounted for 40% of SailPoint’s identity growth in Q1 and now represent 14% of all identities managed in the company’s cloud offering. He said SailPoint saw a greater than 50% ARR increase in customers adopting its advanced non-human identity capabilities during the quarter.

McClain highlighted SailPoint Agentic Fabric, introduced last month, as the company’s response to this shift. He described it as a governance layer designed to discover AI agents, assign them to accountable human owners, apply least-privilege controls and support real-time authorization and remediation. He said the offering is intended to work for cloud customers, on-premise IdentityIQ customers and organizations using other access management platforms.

“You cannot control what you cannot govern,” McClain said, adding that identity security is no longer simply a compliance requirement but a key part of enterprise AI strategy.

The company cited two customer examples from the quarter: a five-year commitment from a major North American retailer following a cyber breach and a platform modernization at a large insurance company moving to SailPoint Identity Security Cloud under a cloud-first mandate.

SaaS Migration and Emerging Products Drive Expansion Carolan said migration activity remained a key catalyst, with ARR from migrations more than doubling year over year. SaaS represented 92% of net new ARR in the quarter, compared with 69% in the same period last year.

Management said SailPoint’s Modernization Flex pricing program is helping customers move from on-premise products to the cloud. About one-third of migrations in Q1 used the Modernization Flex offering. Carolan also said ARR contribution from emerging products more than doubled year over year and represented 20% of net new ARR in the quarter.

During the question-and-answer session, President Matt Mills said SailPoint has created workshops for customers and prospects that bring together identity management, AI and security teams. He said those conversations often reveal that different groups inside large enterprises are only beginning to coordinate on AI identity risk.

Mills said about 10% of SailPoint customers have adopted AI-related capabilities and that the company is seeing “a lot of top-of-funnel attraction.” Management said the agentic pipeline doubled in Q1 and has been doubling quarter over quarter since inception, though executives repeatedly noted that the opportunity remains early and is not yet a major contributor to reported results.

Guidance Raised for Fiscal 2027 For fiscal Q2 2027, SailPoint expects ARR of $1.22 billion, up 24% year over year, and revenue of $310 million, up 17%. The company expects adjusted operating margin of 18.4%, diluted share count of approximately 571 million and adjusted earnings per share of $0.07 to $0.08.

For the full fiscal year, SailPoint raised its guidance to reflect Q1 upside. The company now expects:

ARR of $1.369 billion, up 22% year over year; Revenue of approximately $1.27 billion, up 19% year over year; Adjusted operating margin of 19%, up 50 basis points from the prior outlook; Adjusted EPS of $0.32, based on approximately 580 million diluted shares; Free cash flow of approximately $200 million. Carolan said SailPoint continues to expect 90% to 95% of net new ARR to come from SaaS in both Q2 and the full year, reflecting continued customer adoption of its cloud platform. He also cautioned that the shift toward SaaS can create short-term fluctuations in revenue growth and margins, while describing it as a long-term value driver.

In closing remarks, McClain said SailPoint is still in the “very early innings” of the agentic AI shift but sees “significant momentum building.” He said management expects that momentum to begin showing up in the company’s numbers over time, while adding that future guidance will reflect the opportunity “as appropriate.”

About SailPoint NASDAQ: SAILSailPoint Technologies Holdings, Inc NASDAQ: SAIL is a leading provider of enterprise identity governance solutions that enable organizations to manage and secure user access across on-premises, cloud and hybrid IT environments. Its software automates identity lifecycle management, access certifications, policy enforcement and privileged account governance, helping enterprises reduce security risks, maintain regulatory compliance and streamline IT operations. The company's flagship offerings include IdentityIQ, a comprehensive on-premises platform, and IdentityNow, a cloud-native identity governance-as-a-service solution.

Founded in 2005 by industry veterans Mark McClain and Kevin Cunningham, SailPoint is headquartered in Austin, Texas.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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SailPoint, Inc. (SAIL) Q1 2027 Earnings Call Transcript

SailPoint is downgraded to neutral after a 25% rally from March lows, despite a Q1 beat and raise. SAIL's subscription revenue remains robust, growing over 20%, and over 90% of total revenue is subscription-based. AI-driven growth has yet to materialize, with revenue deceleration and softening net retention rates raising concerns.

SailPoint reported Q1 results that topped Wall Street estimates -- yet the stock dropped approximately 12% in a single session in the trading session following the announcement.

, /PRNewswire/ -- Investors in SailPoint, Inc. (NASDAQ: SAIL) lost approximately 12% per share on June 9, 2026, when the stock fell sharply despite the Company reporting fiscal Q1 2027 earnings of $0.05 per share against a consensus estimate of $0.04. Shareholders who suffered losses on their SAIL investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.

SailPoint's Q1 fiscal 2027 results showed year-over-year revenue growth and adjusted EPS that exceeded consensus expectations. Despite those headline figures, the stock was down approximately 12-14% following the earnings release. Financial media reports noted the decline was among the stock's largest daily moves in recent months.

The stock declined following management's forward outlook, which projected negative EPS for the coming quarter and flagged foreign-exchange headwinds that would dampen annual recurring revenue growth. Before the announcement, shares had risen substantially, and investor expectations were elevated. Market participants focused on management's outlook for future quarters, which contributed to a negative reaction despite the reported quarterly results.

SAIL investors who lost money are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.

ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations and actions. Ranked in ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the SAIL Investigation

Q: Who is eligible to participate in the SAIL investigation?A: Investors who purchased SAIL stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: How much did SAIL stock drop?A: Shares fell approximately 12% on June 9, 2026 after the Company reported Q1 earnings that beat estimates but issued weaker-than-expected forward guidance. Investors who purchased shares at higher prices may be entitled to recovery.

Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether SailPoint made materially false or misleading statements regarding its forward outlook and growth trajectory. When the guidance was disclosed alongside Q1 results, the stock price declined sharply despite the earnings beat.

Q: What do SAIL investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.

Q: What if I already sold my SAIL shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SAIL and sold at a loss may still participate in the investigation.

Q: What does it cost me to participate?A: Nothing. Securities investigations are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE SueWallSt.com

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Key Takeaways SailPoint posted Q1 FY27 adjusted EPS of $0.05 on $280.1M revenues, both above estimates.SAIL's ARR rose 26% to $1.163B as SaaS made 63.7% of sales and grew about 35% to $178.4M.SailPoint expanded non-GAAP gross margin to 76.6% and lifted adjusted operating income to $37.8M. SailPoint (SAIL - Free Report) reported first-quarter fiscal 2027 adjusted earnings of 5 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents by 25%. The company had reported earnings of 1 cent in the year-ago quarter.

Revenues were $280.1 million, up 21.6% year over year and ahead of the consensus mark by 1.41%. SailPoint’s strong quarterly performance was driven by continued demand for its identity security offerings and accelerating adoption of SaaS solutions.

SAIL’s Q1 Top-Line DetailsAs of April 30, 2026, annual recurring revenues (ARR) increased 26% year over year to $1.163 billion.

Segment-wise, SaaS contributed 63.7% of fiscal first-quarter total revenues, increasing approximately 35% year over year to $178.4 million. Maintenance and support revenues represented 12.3% of total revenues, which decreased 7.6% year over year to $34.5 million.

Term subscription revenues contributed 15.7% of total revenues, which rose 9.7% to $43.9 million. Other subscription services comprised 3.2% of total revenues, which increased 45.8% year over year to $8.8 million. Total subscription revenues, comprising the four sub-segments, accounted for 94.9% of revenues, which increased 23.5% year over year to $265.8 million. The remaining segment, Services and other, represented 5.1% of total revenues in the reported quarter. The figure decreased 5.4% to $14.3 million.

SailPoint’s Operating HighlightsThe non-GAAP gross margin expanded 30 basis points (bps) year over year to 76.6%.

Sales and marketing expense, on a non-GAAP basis and as a percentage of revenues, increased 10 bps from the year-ago quarter’s level to 39.7%.

Research and development expense, on a non-GAAP basis and as a percentage of revenues, decreased 50 bps from the year-ago quarter’s level to 16.3%.

General and administrative expense, as a percentage of revenues, decreased from the year-ago quarter’s level of 9.7% to 7.1%.

Adjusted income from operations was $37.8 million, representing 13.5% of revenues, up from $23.6 million or 10.2% of revenues, reported in the year-ago quarter.

SailPoint’s Strong Balance SheetAs of April 30, 2026, cash and cash equivalents were $390.8 million compared with $358.1 million as of Jan. 31, 2026.

In the reported quarter, the company generated a cash flow from operations of $38.2 million compared with $64 million in the previous quarter.

SAIL generated free cash flow of $32.5 million compared with $57 million in the previous quarter.

SAIL Offers Q2 and FY27 GuidanceFor second-quarter fiscal 2027, SailPoint expects revenues between $308 million and $312 million, indicating year-over-year growth of 17% to 18%.

The company expects adjusted income from operations to be between $56.5 million and $57.5 million.

Adjusted earnings are expected to be between 7 cents and 8 cents per share for the second quarter of fiscal 2027.

For fiscal 2027, revenues are forecasted to be between $1.265 billion and $1.275 billion, indicating year-over-year growth of 18% to 19%.

The company expects adjusted income from operations to be in the range of $239 million to $244 million.

Adjusted earnings are expected to be between 30 cents and 34 cents per share for fiscal 2027.

SailPoint’s Zacks Rank & Stocks to ConsiderCurrently, SAIL carries a Zacks Rank #3 (Hold).

Applied Materials (AMAT - Free Report) , Advanced Energy Industries (AEIS - Free Report) and Dell Technologies  (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Applied Materials and Advanced Energy Industries each carry a Zacks Rank#2 (Buy), while Dell Technologies sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Applied Materials, Advanced Energy Industries and Dell Technologies are currently pegged at 29.6%, 30.1% and 26.3%, respectively.

Netskope CEO Sanjay Beri discusses rising cybersecurity threats amid the artificial intelligence boom and the importance of real-time protection against A.I.-driven attacks on ‘The Claman Countdown.

SANTA CLARA Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced that it will release financial results for its fiscal first quarter ended April 30, 2026, after the market closes on Wednesday, June 3, 2026.

Management will host a live conference call that day at 2:00 pm PT / 5:00 pm ET to discuss the company’s financial results.

A live webcast of the conference call and related materials can be accessed from the company’s investor relations website at https://investors.netskope.com. Following the call, a replay of the webcast will also be available on the investor relations website.

About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at netskope.com, Netskope.ai, on LinkedIn, and Instagram.

Investor Relations Contact:
Floris van der Veer
Director of Investor Relations
[email protected]

Media Contact:
Tim Whitman
Director of Global Corporate Communications
[email protected]

What happenedAccording to an SEC filing dated May 11, 2026, Sapphire Ventures, L.L.C. initiated a new position in Netskope (NTSK 5.89%) in the first quarter by acquiring 5,672,579 shares. The estimated value of this transaction is $70.40 million, calculated using the average closing share price during the first quarter of 2026. At quarter’s end, the position was valued at $48.16 million, reflecting market price movements during the reporting period.

What else to knowThis was a new position, with Netskope representing 48.43% of Sapphire Ventures’ 13F reportable assets after the trade.Top holdings after the filing:NASDAQ:NTSK: $48.16 million (48.4% of AUM)NASDAQ:BRZE: $39.33 million (39.5% of AUM)NASDAQ:KLTR: $9.74 million (9.8% of AUM)NYSE:PATH: $2.22 million (2.2% of AUM)As of May 11, 2026, Netskope shares closed at a price of $11.24.Netskope reported trailing twelve months revenue of $709 million and a net loss of $679.39 million through January 31, 2026.The position places Sapphire Ventures’ total reported 13F assets at $99.45 million across four positions.Company OverviewMetricValuePrice (as of market close 2026-05-12)$11.24Market Capitalization$4.50 billionRevenue (TTM)$709.00 millionNet Income (TTM)$ (679.39) millionCompany SnapshotNetskope offers a unified cloud-security platform, "Netskope One," providing data protection, secure access, threat prevention, and network optimization for SaaS, web, hybrid, and AI workloads.It operates primarily on a subscription-based model, delivering its security solutions as cloud services to enterprise customers.The company serves a global client base of large organizations seeking advanced cloud security and compliance for complex digital infrastructures.Netskope, Inc. is a technology company specializing in cloud security solutions for enterprise clients. The company leverages a unified platform to address data protection, threat management, and secure access across cloud and web applications.

With a focus on scalable, subscription-based offerings, Netskope aims to deliver robust security and visibility for organizations navigating digital transformation and evolving cybersecurity threats.

What this transaction means for investorsThe first quarter purchase of Netskope shares by Sapphire Ventures is noteworthy for a few reasons. The transaction represents a new stake, and it was so big, it catapulted Netskope to the hedge fund’s top holding.

Perhaps Sapphire Ventures saw an opportunity in Wall Street’s widespread sell-off of cybersecurity stocks in the first quarter of this year. After all, Netskope shares hit a 52-week low of $7.67 in Q1. This is a substantial drop from its $19 IPO price when the company went public last September.

Netskope is seeing strong business growth. It exited its 2026 fiscal year, ended Jan. 31, with a 32% year-over-year increase in sales to $709 million. Its gross profit also rose to 68% from 65% in fiscal 2025.

With the decline in its stock price, Netskope shares are attractively-priced. Its price-to-sales ratio of 3.5 is a significant reduction from the 14.7 seen around the time of its IPO. This makes now a good time to pick up shares.

Robert Izquierdo has positions in UiPath. The Motley Fool has positions in and recommends Braze and UiPath. The Motley Fool has a disclosure policy.