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SailPoint AI Pipeline Could Drive Increasing Annual Recurring Revenue Upside, RBC Says

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SailPoint (SAIL) posted solid fiscal Q2 results across its annual recurring revenue, or ARR, and profitability even though the company's revenue slightly missed expectations amid a SaaS transition, RBC Capital Markets said.

The investment firm said in a note Wednesday that investor expectations remained high due to the company's agentic security opportunity, while management maintained a conservative guidance posture and only flowed the Q2 beat through to its fiscal 2027 guidance.

RBC noted, however, that the potential for upside could become more significant as the company's agentic pipeline matures and converts, adding that AI could become an increasingly important tailwind to growth.

SailPoint remains well positioned to benefit from identity-security momentum and increased agent deployments, while its AI pipeline could contribute more meaningfully to results in the second half of the year.

As the agentic pipeline matures, RBC expects higher conversion rates to drive material ARR increases among existing customers while creating an ample opportunity to win new customers.

RBC kept SailPoint's outperform rating and $22 price target.

Shares of the company were up 4.5% in Thursday trading.

Price: $18.37, Change: $+0.79, Percent Change: +4.47%

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Cooper Companies Fiscal Q3 Adjusted Earnings, Revenue Rise; Q4 Guidance Set

Cooper Companies (COO) reported fiscal Q3 adjusted earnings late Wednesday of $1.15 per diluted share, up from $1.10 a year earlier.Analysts polled by FactSet expected $1.12.Revenue for the three months ended July 31 was $1.07 billion, up from $1.06 billion a year earlier.Analysts expected $1.10 billion.For fiscal Q4, the company expects adjusted EPS of $1.05 to $1.09 on revenue of $1.06 billion to $1.08 billion. Analysts expect EPS of $1.19 on revenue of $1.11 billion.The company now expects full-year fiscal 2026 adjusted EPS of $4.51 to $4.55 on revenue of $4.23 billion to $4.25 billion. It earlier expected adjusted EPS of $4.58 to $4.66 on revenue of $4.29 billion to $4.32 billion.Analysts expect EPS of $4.63 on revenue of $4.31 billion.Separately, the company said it authorized an expansion of its share buyback program to $3 billion from $2 billion.It also completed its strategic review related to the sale of CooperSurgical, and concluded that shareholders would be better served by continued ownership than by a divestment at this time.

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AeroVironment Fiscal Q1 Adjusted Earnings, Revenue Rise

AeroVironment (AVAV) reported fiscal Q1 adjusted earnings late Wednesday of $0.59 per diluted share, up from $0.32 a year earlier.Analysts surveyed by FactSet expected $0.22.Revenue for the quarter ended Aug. 1 rose to $480.5 million from $454.7 million a year earlier.Analysts expected $451.9 million.For fiscal year 2027, the company maintained its revenue guidance at $2.13 billion to $2.23 billion and adjusted EPS forecast at $3.02 to $3.34.Analysts expect adjusted EPS of $3.23 on revenue of $2.19 billion.Shares of the company were up more than 3% in after-hours activity.

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Sector Update: Financial Stocks Decline Late Afternoon

Financial stocks were lower in late Wednesday afternoon trading, with the NYSE Financial Index shedding 0.5% and the State Street Financial Select Sector SPDR ETF (XLF) easing 0.4%.The Philadelphia Housing Index was falling 1.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) declined 1%.Bitcoin (BTC-USD) was increasing 0.2% to $78,193, and the yield for 10-year US Treasuries rose 3.3 basis points to 4.84%.In economic news, the US Treasury Department plans to buy back up to $6 billion of government debt, CNBC reported. The move triples the normal buyback operation, following an announcement Aug. 19 from Treasury Secretary Scott Bessent that the department would at least double the normal amount for already-issued securities.Redbook US same-store sales rose by 8.3% from a year earlier in the week ended Sept. 5 after a 9.6% year-over-year increase in the previous week. Redbook noted positive customer responses to Labor Day promotions. Sales were driven mainly by back-to-school demand and seasonal apparel. Discount stores saw strong food sales ahead of the long holiday weekend.In corporate news, Patria Investments (PAX) shares fell 3% after BofA Securities downgraded the stock to underperform from neutral.UnitedHealth (UNH) sold an interest in some of its Optum Health operations in Florida to TPG (TPG), Bloomberg reported. TPG shares were shedding 3.9%.Blackstone (BX) is seeking to sell medical-grade skincare company ZO Skin Health with a valuation of around $2 billion, Reuters reported. Blackstone shares were falling 3.4%.Barclays (BCS) is leading a group of lenders preparing a 2.4 billion-euro ($2.8 billion) financing package to support Lone Star Funds' acquisition of industrial-products manufacturer ContiTech, Bloomberg reported. Barclays shares were down 1.3%.

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