SailPoint Reports Fiscal Q2 2027 Results: ARR Reaches $1.231 Billion

SailPoint, Inc. announced its financial results for the fiscal quarter ended July 31, 2026, reporting a 25% year-over-year increase in total annual recurring revenue (ARR) to $1.231 billion. The company reported total revenue of $309 million, representing a 17% increase from the prior year. Subscription revenue, which accounted for the majority of the total, grew 19% year-over-year to $295 million.

On a non-GAAP basis, the company reported adjusted income from operations of $63 million, or 20% of revenue. This compares to $54 million, or 20% of revenue, in the prior year. GAAP operating loss for the quarter was $59 million, or 19% of revenue. The company also reported cash flows from operating activities of $45 million and free cash flow of $37 million.

SaaS ARR grew 36% year-over-year to $847 million, with net new SaaS ARR increasing 34% year-over-year and accounting for 97% of net new ARR. The company’s remaining performance obligation (RPO) grew 30% year-over-year to $1.9 billion, while current RPO (cRPO) grew 27% year-over-year to $931 million. The SaaS customer count grew 16% year-over-year, with ARR per SaaS customer increasing 17% year-over-year to more than $400,000.

AI-driven ARR exceeded $70 million, and AI-driven solutions accounted for more than 30% of net new ARR in the quarter. Existing customers who adopted an AI-driven solution increased their annual spend by more than 60% in the quarter. Additionally, more than two-thirds of migrations completed in the quarter included an AI-driven solution.

SailPoint also provided guidance for the third quarter and full year of fiscal 2027. For Q3 2027, the company expects total ARR between $1.288 billion and $1.292 billion, representing 24% year-over-year growth. Total revenue is expected to be between $326 million and $330 million, with adjusted income from operations projected between $57.5 million and $58.5 million. For the full year of fiscal 2027, the company expects total ARR between $1.375 billion and $1.385 billion, representing 22% to 23% year-over-year growth, and total revenue between $1.265 billion and $1.275 million.

The company reiterated its fiscal 2029 targets, which were discussed at its June 2026 Investor Day, including at least $2.1 billion of ARR, at least $800 million of AI-driven ARR, at least 22% adjusted operating margin, and at least $400 million of free cash flow.