Shares of SailPoint fell Wednesday as the cybersecurity's quarterly earnings failed to impress Wall Street as cybersecurity has risen in profile with threats of artificial-intelligence hacking exponentially growing.

The company posted adjusted earnings of 9 cents a share in the fiscal second quarter ended July 31, up from 7 cents a year ago and above Wall Street expectations of 8 cents. Total revenue grew 17% to $308.81 million, missing the analyst consensus call for $310.3 million, according to FactSet.

Annual recurring revenue, a key metric for investors, increased 25% to $1.231 billion and slightly surpassed Wall Street expectations of $1.22 billion. The cybersecurity company also raised its fiscal 2027 annual recurring revenue outlook.

SailPoint stock dropped 7.3% to $16.49 in premarket trading on Wednesday after ending Tuesday down 5.5%. Shares have fallen 14% this month as of the closing bell on Tuesday and have retreated 12% this year.