SailPoint, Inc.

Q2 FY2027 ARR was $1.231 billion, up 25% year over year, and exceeded the midpoint of guidance by $11 million. Revenue was $309 million, up 17% year over year; SaaS ARR grew 36% to $847 million; net new SaaS ARR was $66 million, up 34%; and SaaS accounted for 97% of net new ARR. Excluding about $36 million of point-in-time revenue, revenue recognized over time grew 22% year over year. RPO grew 30% year over year to $1.9 billion, current RPO grew 27% to $931 million, adjusted operating margin was 20.3%, free cash flow was $37 million with a 12.1% margin, net revenue retention was 113%, and gross retention was in the high 90s. For Q3 FY2027, management guided to ARR of $1.29 billion, revenue of $328 million, adjusted operating margin of 17.7%, and adjusted EPS of $0.07 to $0.08. For FY2027, guidance was raised to ARR of $1.38 billion, revenue of about $1.27 billion, adjusted operating margin of about 19%, adjusted EPS of $0.32, and free cash flow of about $200 million.

Mark McClain framed the quarter as proof that SailPoint’s identity security platform is benefiting from both AI demand and product innovation, especially around agentic identity governance. He emphasized that the market is shifting from human-only identity to a combined human-plus-AI problem, and said SailPoint is uniquely positioned because customers need discovery, governance, and enforcement in one control plane. His tone was confident and strategic, with repeated emphasis on the company’s architectural leadership, regulatory relevance, and long-term FY2029 targets.

Brian Carolan highlighted that the business is becoming more durable and predictable as SaaS conversion accelerates. He cited total ARR of $1.231 billion, SaaS ARR of $847 million, $66 million of net new SaaS ARR, $309 million of revenue, 20.3% adjusted operating margin, and $37 million of free cash flow. He also said AI-driven ARR is over $70 million, well ahead of the pace to reach the $100 million fiscal-year-end target, and reiterated FY2027 guidance of $1.38 billion ARR, about $1.27 billion revenue, 19% adjusted operating margin, and about $200 million of free cash flow. He noted that SaaS mix can create revenue timing headwinds, but said this is a recognition issue rather than a demand issue.

Analysts focused on how AI-driven pipeline is converting, how quickly the $100 million AI-driven ARR target might be reached, and whether the strong ARR beat is being offset by revenue timing from SaaS mix. Management said the pipeline has more than doubled since Investor Day, POCs are abundant, and customers are increasingly responding to the integrated human-plus-agentic story. On deal dynamics, Mark McClain said there was no significant slippage in the quarter, while Matt Mills said AI is speeding up sales cycles, especially in Entro-led POCs, which he described as often running 30 to 45 days. Another recurring theme was migration economics: Brian Carolan said migration contribution was about 4 points to ARR growth, that 2/3 of migrations included AI-enabled products, and that the 2x to 3x uplift range on migration still holds.