revenue
328 $million
Q3 2027
official guidance
SAILPOINT, INC.
Last · NASDAQ$19.39+1.08 (+5.90%)stale · yahoo · 184h ago
Market cap$11.00B567.2M sh
P/E · TTM-77.6fwd 48.5 · eps -0.25 · loss
Beta—vs S&P 500
Div yield—annual · TTM
52w range
$10.30$24.00
Volume2.4Msession
| Revenue | $1.2B |
|---|---|
| Operating income | $-138.8M |
| Net income | $-125.0M |
| Free cash flow | $194.9M |
| Operating margin | -11.9% |
| Net margin | -10.7% |
| Return on equity | -1.8% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Strong SaaS execution, expanding AI monetization, and raised ARR guidance outweigh near-term revenue-recognition pressure.
Buy: SailPoint delivered a strong Q2 with ARR of $1.231 billion, up 25%, SaaS ARR up 36% to $847 million, SaaS net new ARR up 34% to $66 million, and RPO up 30% to $1.9 billion.
AI-driven ARR exceeded $70 million and contributed more than 30% of net new ARR, while FY2027 ARR guidance rose to $1.38 billion; the main tension is that SaaS mix reduced Q2 reported revenue growth to 17% and AI pipeline conversion remains largely unproven.
Themes
- Saas Migration
- Agentic Ai
- Ai Driven Arr
- Entro Security
- Identity Governance
- Aws Collaboration
Near term
Q3 revenue is guided to $328 million, up 16%, with adjusted operating margin falling to 17.7% as SaaS mix and timing effects continue.
SaaS is expected to represent 85%–90% of Q3 net new ARR and 90%–95% for FY2027; every $5 million mix swing can affect reported revenue by roughly $10 million.
More than $200 million of AI-driven pipeline and hundreds of POCs must begin converting over the next three to four quarters.
Entro contributed less than $3 million of ARR in Q2, with currency headwinds more than offsetting the contribution.
Longer term
SaaS migration remains a meaningful growth engine: it contributed approximately 4 percentage points to Q2 ARR growth, and over two-thirds of migrations included an AI-driven solution.
Customers adopting AI solutions increased annual spend by more than 60%, above the previously discussed 25%–50% uplift range, though management is not yet raising its longer-term assumptions.
The AWS collaboration and integrations with Snowflake, Databricks, and Anthropic could expand distribution and relevance in agentic identity governance.
Competitive advantage depends on SailPoint proving that its unified human-and-agent identity control plane is differentiated from monitoring, security, and adjacent platform vendors.
FY2029 targets of at least $2.1 billion ARR, at least $800 million of AI-driven ARR, at least 22% adjusted operating margin, and at least $400 million of free cash flow imply substantial sustained execution.
Red flags
AI-driven ARR is broadly defined to include integrated human and non-human identity offerings, making the standalone economics and attach rates difficult to assess.
Management provided strong pipeline and POC commentary but little quantitative detail on conversion rates, competitive displacement, or sales-cycle-to-revenue timing.
The Q2 AI contribution benefited from existing Business Suite customers with an upgrade path, so the pace of new-logo adoption remains less established.
Revenue recognition remains highly sensitive to SaaS versus term mix; stronger ARR growth may continue to suppress near-term reported revenue and operating income.
Entro integration and the expansion into real-time authorization and enforcement add execution and potential acquisition-risk exposure.
Forward outlook
revenue growth
16 pct
Q3 2027
official guidance
operating margin
17.7 pct
Q3 2027
official guidance
adjusted eps
0.07–0.08 $per share
Q3 2027
official guidance
revenue
1270 $million
FY 2027
official guidance
revenue growth
19 pct
FY 2027
official guidance
operating margin
19 pct
FY 2027
official guidance
adjusted eps
0.32 $per share
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-19
- Net Margin Sharply Negative
- Sbc Revenue Elevated
Red flags
- Net Margin Sharply Negative — Net margin -27.4%
- Sbc Revenue Elevated — SBC/Revenue 23.8%
Recent earnings
Reported · 1:12 PM UTC+2
Period
Jun 2026
EPS
$0.09Beat+12.5%
Est. revenue
—
Earnings transcripts
Press & signals
- GlobeNewswire
SailPoint Announces Fiscal Second Quarter 2027 Results
- GlobeNewswire
SailPoint completes acquisition of Entro Security to secure agentic identities
Documents
FormReporting forFiledFlags