SailPoint reported fiscal second-quarter 2027 annual recurring revenue of $1.231 billion, up 25% year over year, as adoption of its cloud and AI-powered identity security products continued accelerating.
SaaS ARR increased 36% to $847 million, while net-new SaaS ARR increased 34% and represented 97% of total net-new ARR.
Revenue increased 17% to $309 million, including subscription revenue of $295 million, up 19%. SailPoint generated $45 million of operating cash flow and $37 million of free cash flow.
GAAP operating loss was $59 million, compared with $41 million a year earlier, while adjusted operating income increased to $63 million from $54 million and maintained a 20% adjusted operating margin.
AI is becoming an increasingly significant contributor to growth. AI-driven ARR surpassed $70 million, and AI products generated more than 30% of net-new ARR during the quarter.
Existing customers that adopted an AI-driven solution increased their annual spending by more than 60%, while more than two-thirds of cloud migrations completed during the quarter included an AI-powered solution.
SaaS customer count increased 16%, and ARR per SaaS customer increased 17% to more than $400,000. Remaining performance obligations increased 30% to $1.9 billion, while current RPO rose 27% to $931 million.
SailPoint also introduced its broader Identity Security solution combining SailPoint Agentic Fabric and SailPoint Human Fabric, launched a Cursor Enterprise connector for governing both human software engineers and autonomous AI agents, and introduced Agentic Acceleration to automate much of the migration to its cloud products.
The company also completed its acquisition of Entro Security and introduced integration with the Claude Compliance API.
For fiscal 2027, SailPoint expects ARR of $1.375 billion to $1.385 billion and revenue of $1.265 billion to $1.275 billion. Adjusted operating income is projected at $239 million to $244 million.
Longer term, SailPoint reiterated fiscal 2029 targets of at least $2.1 billion in ARR, $800 million in AI-driven ARR, a 22% adjusted operating margin and $400 million in free cash flow.
KEY QUOTE:
“Our strong Q2 results demonstrate the powerful compounding effect of our identity security platform and AI-driven innovations,” said Mark McClain, SailPoint CEO and Founder. “This momentum reinforces our confidence in our long-term trajectory, keeping us firmly on track to achieve our FY’29 targets, including at least $2.1 billion of ARR. By unifying human and agentic identity under one control plane, SailPoint is redefining security for the AI era.”
Mark McClain, CEO and Founder of SailPoint
