SailPoint, Inc. Q1 FY2026 earnings call

• ARR closed at $925 million, with 30% YOY growth and SaaS ARR up 39% YOY. Customers with ARR > $1 million grew 62% YOY.
• Innovation strategy focuses on least privilege for all identities, governance of emerging identity types (machine identities, AI agents), AI integration with Harbor Pilot for cyber resilience, and Atlas platform for threat prevention.
• Strong ecosystem partnerships with cloud providers, systems integrators, and technology leaders, including expanded alliance with Deloitte and MSP program for mid-market.
• Customer adoption is strong, with workflow usage at an all-time high and continued growth in machine identity security and other modules.

SailPoint ended fiscal Q1 2026 with ARR of $925 million, a 30% year-over-year increase. SaaS ARR was $574 million, growing 39% year-over-year. Currency had less than a 1 point benefit to total ARR growth. There was a 62% year-over-year increase in customers with ARR greater than $1 million. The average ARR per customer is nearly 3x higher than other identity security vendors. The ARR growth reflects high demand for identity security as a top cybersecurity investment priority for enterprise leaders.

• Fiscal Q2 2026 ARR expected to be $965 million, up ~26% YOY. Fiscal year 2026 ARR outlook increased by $20 million to $1.1 billion, up 25.5% YOY.
• Fiscal Q2 2026 revenue expected at $243 million, up 22% YOY with adjusted operating margin of 12.1%. Fiscal year 2026 revenue expected at $1.039 billion, up 21% YOY with adjusted operating margin of 15.7%.

Q: For Matt, in terms of machine identity, what about pricing and competitive dynamics?

A: Matt Mills said machine identity is a top concern for customers, pricing is value-based and a moving target, and SailPoint is focused on authorization capabilities vs others focusing on authentication. Mark McClain added SailPoint's focus on authorization for machine identities is differentiated.

Q: Matthew George Hedberg asked about U.S. Fed exposure and macro pressure. What's being seen?

A: Matt Mills responded that thus far, there's been no material impact from DOGE-related issues on their business.

Q: Robbie David Owens asked about ARR strength and new vs existing customers. Brian Carolan said new customers are half of ARR growth, with pipeline from failed deployments of other solutions, and existing customers have half from expansion including migrations, upsell, cross-sell of new products like nonemployee risk management, etc.

Q: Peter Marc Levine asked why IGA is better positioned for AI than other vendors and about macro in guidance. Mark McClain said IGA addresses core questions about agents (who has access, what can they do) which access tools don't. Brian Carolan said they haven't built in macro headwinds but are mindful of it.

Q: Gray Wilson Powell asked about migrating from legacy IGA solutions. Matt Mills said they're seeing acceleration in displacing legacy systems, and Mark McClain mentioned Gartner report showing SailPoint's market share gains.

Q: Shaul Eyal asked about Accenture partnership. Matt Mills and Mark McClain said Accenture is a leading partner and they continue to invest and expand with them.

Q: Joseph Anthony Gallo asked about sales capacity, investments, and margin leverage. Brian Carolan said margin strength was due to timing of investments, capacity adds, and investing in customer success to drive retention rates.

Q: Brian Lee Essex asked about the retailer customer win. Mark McClain and Matt Mills discussed the catalyst was frustration with legacy tools, displacing legacy solutions, and the sales cycle was within 6-9 months.

Q: Gabriela Borges asked about AI speeding up implementation and risk from new vendors. Mark McClain said SailPoint uses AI to speed up connecting to bespoke apps and simplify technical work, and they differentiate by deep entitlement governance vs shallow connectors of some new vendors.

Q: Tal Liani asked about ARR guidance and timing. Brian Carolan said no unique timing of orders, Q2 guide is above consensus and FY guide raised due to organic growth.

Q: Keith Weiss asked about big customer numbers and go-to-market. Mark McClain said it's driven by expansion opportunities, and Matt Mills said no change in go-to-market strategy.

Q: Michael Andrew Romanelli asked about Harbor Pilot and migration impact. Mark McClain said Harbor Pilot is included in the platform, and Brian Carolan said migrations contributed low single digits to NRR.

Q: Andrew James Nowinski asked about non-SaaS ARR growth. Brian Carolan said Q1 had strong term business due to some customers choosing on-prem, but targeting 90-10 SaaS-term mix going forward.

Q: Saket Kalia asked about net new ARR shape and NRR components. Brian Carolan said net new ARR is consistent, and NRR components include migrations, upsell, cross-sell of new products, and SaaS suite upgrades.