SailPoint (SAIL) Q1 2027 earnings summary

Executive summary

• Annual recurring revenue (ARR) grew 26% year-over-year to $1.163 billion, with SaaS ARR up 36% to $781 million, reflecting strong demand for AI-driven identity security solutions and cloud-based offerings.

• Total revenue for Q1 2027 was $280 million, up 22% year-over-year, driven by robust SaaS and subscription growth.

• Customer base expanded, with 225 customers generating over $1 million in ARR (up 32% YoY) and 1,270 customers over $250,000 in ARR.

• Launched Agentic Fabric, a new platform for real-time governance of AI agents and non-human identities, fueling customer expansion and competitive wins.

• Net loss narrowed significantly year-over-year, reflecting improved operating leverage and lower equity-based compensation.

Financial highlights

• Q1 2027 ARR reached $1.163 billion (up 26% YoY); SaaS ARR was $781 million (up 36% YoY); revenue was $280 million (up 22% YoY); SaaS revenue grew 35%.

• Adjusted operating margin expanded to 13.5% (up from 10% YoY); adjusted income from operations was $38 million.

• Free cash flow was $33 million (11.6% margin); cash and equivalents ended at $391 million.

• Adjusted gross profit margin improved to 76.6% from 76.3% year-over-year.

• Net loss per share improved to $(0.13) from $(0.42) year-over-year.

Outlook and guidance

• Q2 2027 guidance: ARR of $1.22 billion (+24% YoY), revenue of $310 million (+17% YoY), adjusted operating margin of 18.4%.

• FY 2027 guidance raised: ARR to $1.369 billion (+22% YoY), revenue to $1.27 billion (+19% YoY), adjusted operating margin to 19%, and free cash flow expected at $200 million.

• 90–95% of net new ARR for FY 2027 expected to come from SaaS.

• Management expects continued growth in SaaS ARR and further expansion of the SaaS mix.

• Adjusted EPS for FY 2027 projected at $0.30–$0.34.