SailPoint, Inc.

Fiscal Q1 2027 ARR was $1.163 billion, up 26% year over year, including SaaS ARR of $781 million, up 36%. Revenue was $280 million, up 22% year over year, with SaaS revenue up 35%; adjusted operating margin was 13.5%; and dollar-based net revenue retention was 113%. Cash from operating activities was $38 million, free cash flow was $33 million, and free cash flow margin was 11.6%; cash and cash equivalents were $391 million. For Q2 FY27, management guided to ARR of $1.22 billion, revenue of $310 million, adjusted operating margin of 18.4%, and adjusted EPS of $0.07 to $0.08. For FY27, guidance was raised to ARR of $1.369 billion, revenue of approximately $1.27 billion, adjusted operating margin of 19%, adjusted EPS of $0.32, and free cash flow of approximately $200 million.

Mark McClain framed identity security as a critical control layer for the AI era and argued that SailPoint is becoming the enterprise identity control plane for both humans and nonhuman identities. He emphasized the new Agentic Fabric, real-time governance, and the need to tie agents to human accountability, saying customers are increasingly realizing that AI cannot be managed in isolation. His tone was confident and expansive, but he also repeatedly acknowledged that the monetization from Agentic AI is still early and likely to show up later in the year.

Brian Carolan highlighted that Q1 ARR, revenue, and adjusted operating margin all came in above the high end of guidance. He cited 26% ARR growth, 22% revenue growth, 13.5% adjusted operating margin, $33 million of free cash flow, and $391 million of cash on hand. He also pointed to mix shifts toward SaaS, noting 92% of net new ARR came from SaaS, that the company expects 90% to 95% of net new ARR to come from SaaS in FY27, and that SaaS migration and emerging products are helping drive operating leverage and long-term growth.

Analysts focused on when the Agentic AI opportunity will begin contributing to results, and management said the pipeline has been building quickly but is still early, with more impact expected in the latter half of FY27. They also discussed pricing, with management describing a hybrid consumption model that includes baseline nonhuman identities and capacity packs for additional usage. On migration and SaaS conversion, Brian said the company is modeling about 10% of the on-prem base migrating to SaaS this year and that Q1 was tracking in line with that assumption.