SailPoint (SAIL) Q4 2026 earnings summary

Executive summary

• Annual recurring revenue (ARR) reached $1.125 billion for fiscal 2026, up 28% year-over-year, with SaaS ARR up 38% to $746 million, surpassing $1 billion ARR for the first time.

• SaaS customer count grew 16% year-over-year, with ARR per SaaS customer up 19% to over $380,000.

• Customer base expanded to 3,235, with net revenue retention at 113% in Q4.

• Over 500 transactions tied to new innovations closed, with non-human identities accounting for 25% of SaaS identity growth in Q4.

• Strong momentum in AI-driven identity security, positioning as a foundational control plane for AI-powered enterprises.

Financial highlights

• Q4 revenue was $295 million, up 23% year-over-year; FY 2026 revenue reached $1.071 billion, up 24% year-over-year.

• Subscription revenue for FY 2026 was $1.01 billion, up 27% year-over-year.

• Adjusted operating margin for Q4 was 20.6%; FY 2026 margin was 18.1%.

• Free cash flow for FY 2026 was $52 million (4.8% margin); Q4 operating cash flow was $57 million.

• Adjusted EPS for Q4 was $0.08; for the year, $0.24.

Outlook and guidance

• FY 2027 ARR guidance: $1.356–$1.366 billion (21% YoY growth); revenue guidance: $1.26–$1.27 billion (18–19% YoY growth).

• Adjusted operating margin for FY 2027 guided at 18.2–18.8%; adjusted EPS at $0.30–$0.34.

• Free cash flow expected to reach ~$200 million in FY 2027.

• Q1 FY 2027 ARR guidance at $1.155 billion (up 25%); revenue at $275 million (up 19%).

• SaaS expected to comprise 90–95% of net new ARR in FY 2027, creating a margin headwind.