SailPoint (SAIL) Q4 2026 earnings summary

Executive summary

• Achieved $1.125 billion in ARR for FY 2026, up 28% year-over-year, with SaaS ARR growing 38% to $746 million and SaaS revenue up 35% year-over-year.

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

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

• Customer base expanded to 3,235, with strong net retention rate of 113% in Q4 and gross retention at 97%.

• SaaS-first strategy, AI-driven innovations, and flexible pricing models fueled growth, with 17% of net new ARR in Q4 from emerging products, notably AI identity solutions.

Financial highlights

• Adjusted operating margin for FY 2026 was 18.1%, up 270 basis points; Q4 margin was 20.6%.

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

• Adjusted EPS for Q4 was $0.08; for FY 2026, $0.24.

• 215 customers exceeded $1 million in ARR, a 34% increase year-over-year.

• Average ARR per SaaS customer grew 19% to over $380,000.

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 projected at 18.2–18.8% for FY 2027; adjusted EPS $0.30–$0.34; free cash flow guidance of ~$200 million.

• Q1 FY 2027 ARR guidance at $1.153–$1.157 billion (+25% YoY); revenue $273–$277 million (+18–20% YoY).

• SaaS expected to comprise 90–95% of net new ARR in FY 2027, creating a ~300 bps revenue and ~200 bps margin headwind.