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 the $1 billion milestone.

• 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 retention rate of 113% in Q4'26.

• Over 500 transactions tied to new innovations closed, with strong adoption among Fortune 1000 companies.

• The company positions itself as a key beneficiary of the AI revolution, leveraging domain expertise and a robust ecosystem.

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 FY 2026 was 18.1%, with Q4 at 20.6%.

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

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

Outlook and guidance

• FY 2027 ARR guidance is $1.356–$1.366 billion (21% year-over-year growth); revenue guidance is $1.26–$1.27 billion (18–19% growth).

• Adjusted operating margin expected at 18.2–18.8%; adjusted EPS at $0.30–$0.34; free cash flow guidance at ~$200 million.

• Q1 FY 2027 ARR guidance is $1.153–$1.157 billion (25% year-over-year growth); revenue $273–$277 million (18–20% growth).

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