SailPoint (SAIL) Q2 2026 earnings summary

Executive summary

• Achieved $982M in ARR, up 28% year-over-year, with SaaS ARR growing 37% to $623M and total Q2 revenue reaching $264M, a 33% increase year-over-year, driven by strong SaaS and new logo growth.

• Adjusted income from operations reached $54M (20.4% margin), with adjusted EPS of $0.07 and a GAAP net loss per share of $(0.02).

• Cash flows from operating activities were $50M, with free cash flow of $46M for the quarter and cash and cash equivalents at $271M.

• Completed IPO in February 2025, raising $1.25B in net proceeds and repaid $1.04B in term loans; Thoma Bravo remains controlling shareholder.

• Significant product innovation and acquisitions, including Savvy and Imprivata assets, to enhance SaaS application visibility and risk detection.

Financial highlights

• Subscription revenue grew 36% year-over-year to $248M, representing 94% of total revenue; adjusted gross profit margin was 78.2%.

• Dollar-based net retention rate remained strong at 114%.

• Adjusted operating margin improved to 20.4% from 10.7% year-over-year.

• Free cash flow margin was 17.4% for the quarter.

• Customers with >$1M ARR grew 48% year-over-year to 185.

Outlook and guidance

• FY26 ARR guidance raised to $1.105B–$1.115B (26–27% YoY growth); revenue guidance increased to $1.052B–$1.058B (22–23% YoY growth).

• Q3'26 total revenue expected at $269M–$271M (14–15% YoY growth); adjusted operating margin for Q3'26 guided at 15.7–16.2%.

• Adjusted EPS for FY26 expected at $0.20–$0.22; free cash flow for H2 expected at $85M, with one-third in Q3 and two-thirds in Q4.