SailPoint Technologies Holdings (NYSE: SAIL) reported fiscal second-quarter results on September 9, 2026, showing continued strong growth powered by expanding demand for artificial intelligence identity and access management solutions.
Annual recurring revenue reached $1.231 billion, rising 25% year-over-year and exceeding the midpoint of guidance by $11 million. SaaS ARR climbed 36% to $847 million, while net new SaaS ARR totaled $66 million, up 34%, accounting for 97% of net new ARR and landing above the guided range of 90% to 95%.
AI-related ARR topped $70 million, representing more than 30% of the quarter’s net new ARR. The company had launched its SailPoint Agentic Acceleration and SailPoint Agentic Fabric products in early May, positioning itself to address growing enterprise needs around AI agent governance.
Revenue rose 17% year-over-year to $309 million, with SaaS revenue growing 34%. Adjusted operating margin came in at 20.3%, and free cash flow was $37 million, or a 12.1% margin. Dollar-based net revenue retention held at 113%, with gross retention remaining in the high 90s. Remaining performance obligations increased 30% year-over-year to $1.9 billion, including current RPO of $931 million, up 27%.
The company has seen accelerating traction with its AI identity security offerings. In one case, a Fortune 500 company completed a proof-of-concept within a week, discovering over 10,000 unknown AI agents across data sources and signing a multimillion-dollar contract for Digital Identity Flex alongside its Entro Security acquisition. A global financial services firm signed a multi-year agreement to manage over 300,000 identities, cutting configuration time from weeks to less than 10 hours.
CEO Mark McClain noted that 97% of AI agents now have access to sensitive enterprise data, while only 21% of organizations surveyed expressed high confidence in managing that risk. The EU AI Act’s human oversight and audit logging requirements are expected to become enforceable as early as 2027, adding regulatory tailwinds.
SailPoint raised its full-year fiscal 2027 ARR guidance by $11 million to $1.38 billion, with revenue projected at approximately $1.27 billion and adjusted EPS at $0.32. For the third quarter, the company guided ARR of $1.29 billion, revenue of $328 million, adjusted operating margin of 17.7%, and adjusted EPS of $0.07 to $0.08.
On its long-term targets for fiscal 2029, the company reaffirmed plans for at least $2.1 billion in ARR, $800 million in AI-driven ARR, at least 22% adjusted operating margin, and at least $400 million in free cash flow.
SailPoint’s market capitalization stood at approximately $10.09 billion following the report, with shares trading near $17.82 against a 52-week range of $10.30 to $24.
