SailPoint, Inc. announced its financial results for the fiscal second quarter ended July 31, 2026, in a filing dated September 9, 2026. The company reported a 25% year-over-year increase in total Annual Recurring Revenue (ARR) to $1.231 billion. Subscription revenue rose 19% year-over-year to $295 million, while total revenue increased 17% to $309 million.
On a non-GAAP basis, the company reported adjusted income from operations of $63 million, or 20% of revenue. GAAP operating loss for the quarter was $59 million, or 19% of revenue. Cash flows from operating activities totaled $45 million, with free cash flow reaching $37 million.
SaaS ARR grew 36% year-over-year to $847 million, accounting for 97% of net new ARR. The company noted that AI-driven ARR exceeded $70 million, with AI-driven solutions comprising more than 30% of net new ARR in the quarter. Existing customers adopting an AI-driven solution increased their annual spend by more than 60% during the period.
SailPoint provided guidance for the third quarter of fiscal 2027, expecting total ARR between $1.288 billion and $1.292 billion, representing 24% year-over-year growth. For the full fiscal year 2027, the company anticipates ARR between $1.375 billion and $1.385 billion, with revenue growth projected between 18% and 19%.
The company reiterated its fiscal 2029 targets, including at least $2.1 billion of ARR and at least $800 million of AI-driven ARR.
