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Sep 9, 2026, 7:12 AM ETTechnology

SailPoint — Fiscal Second Quarter 2027 Earnings Summary

SAILSAILPOINT INC
Source

Financial Performance

  • Total ARR reached $1.231 billion, a 25% year-over-year increase.
  • SaaS ARR was $847 million, a 36% year-over-year increase, with net new SaaS ARR up 34% year-over-year.
  • Net new SaaS ARR accounted for 97% of net new ARR.
  • Total revenue was $309 million, a 17% year-over-year increase.
  • Subscription revenue was $295 million, a 19% year-over-year increase.
  • GAAP operating loss was $(59) million, or (19)% of revenue, compared to a $(41) million loss, or (15)% of revenue, in fiscal Q2 2026.
  • Adjusted income from operations was $63 million, or 20% of revenue, compared to $54 million, or 20% of revenue, in fiscal Q2 2026.
  • Cash flows from operating activities were $45 million.
  • Free cash flow was $37 million.
  • Remaining performance obligation (RPO) grew 30% year-over-year to $1.9 billion.
  • Current RPO (cRPO) grew 27% year-over-year to $931 million.

Guidance and Future Outlook

  • Q3 2027 Total ARR guidance is $1,288 million to $1,292 million (24% YoY growth).
  • Q3 2027 Total revenue guidance is $326 million to $330 million (16% to 17% YoY growth).
  • Q3 2027 Adjusted income from operations guidance is $57.5 million to $58.5 million.
  • Q3 2027 Adjusted operating margin guidance is 17.4% to 17.9%.
  • Q3 2027 Adjusted EPS guidance is $0.07 to $0.08.
  • FY 2027 Total ARR guidance is $1,375 million to $1,385 million (22% to 23% YoY growth).
  • FY 2027 Total revenue guidance is $1,265 million to $1,275 million (18% to 19% YoY growth).
  • FY 2027 Adjusted income from operations guidance is $239 million to $244 million.
  • FY 2027 Adjusted operating margin guidance is 18.7% to 19.3%.
  • FY 2027 Adjusted EPS guidance is $0.30 to $0.34.
  • Reiterated FY 2029 targets: at least $2.1 billion ARR, at least $800 million AI-driven ARR, at least 22% adjusted operating margin, and at least $400 million free cash flow.

Business Segments and Product Lines

  • AI-driven ARR exceeded $70 million.
  • AI-driven solutions accounted for more than 30% of net new ARR in the quarter.
  • Existing customers adopting an AI-driven solution increased annual spend by more than 60% in the quarter.
  • More than two-thirds of migrations completed included an AI-driven solution.
  • SaaS customer count grew 16% year-over-year.
  • ARR per SaaS customer grew 17% year-over-year to more than $400,000.
  • Unveiled SailPoint Identity Security solution, combining SailPoint Agentic Fabric and SailPoint Human Fabric.
  • Released SailPoint Cursor Enterprise connector for governing human software engineers and autonomous AI agents.
  • Announced SailPoint Agentic Acceleration, an AI-powered methodology for cloud modernization.
  • Launched Unified Platform Access for technology partners.
  • Introduced integration with the Claude Compliance API.

Market and Competitive Landscape

  • KuppingerCole ranked SailPoint first in Product, Innovation, and Market Leadership in identity and access governance as of August 13, 2026.

Risks and Challenges

  • Forward-looking statements are subject to risks including ability to sustain growth rates, attract/retain customers, and compete against current and future competitors.
  • Risks include integration of acquired businesses, complexity of operations, cybersecurity breaches, and regulatory compliance.
  • GAAP measures are not reconciled to non-GAAP measures for forward-looking periods due to high variability in stock-based compensation, payroll taxes, and other adjustments.

Management Commentary and Tone

  • CEO Mark McClain stated strong Q2 results demonstrate the "powerful compounding effect" of the identity security platform and AI-driven innovations.
  • Management expressed confidence in the long-term trajectory, stating the company is "firmly on track" to achieve FY'29 targets.
  • Management highlighted the strategy of unifying human and agentic identity under one control plane to redefine security for the AI era.

Other Key Points

  • Completed the acquisition of Entro Security to enhance the holistic identity security solution.
  • Non-GAAP financial measures exclude equity-based compensation, payroll taxes related to IPO-accelerated awards and RSUs, amortization of acquired intangible assets, acquisition-related expenses, and restructuring expenses.
  • The company operates in the enterprise identity security market, focusing on securing diverse workforces of human and digital identities.