SailPoint Q2 2026 slides: ARR surges 28% as identity security demand accelerates

SailPoint Technologies (NYSE:SAIL) reported strong financial results for its fiscal second quarter of 2026, with Annual Recurring Revenue (ARR) reaching $982 million, up 28% year-over-year. The company highlighted the growing importance of identity security in an increasingly complex digital environment during its earnings presentation on September 9, 2025.

Quarterly Performance Highlights

SailPoint delivered impressive growth across all key financial metrics in Q2 2026. Total revenue reached $264 million, representing a 33% increase compared to the same period last year, while subscription revenue grew 36% year-over-year to $248 million.

As shown in the following summary of key performance indicators, SailPoint demonstrated strength in both top-line growth and profitability improvement:

The company’s SaaS business continued to outperform, with SaaS ARR growing 37% year-over-year to $623 million. This strong performance reflects SailPoint’s successful transition toward a SaaS-focused business model.

The following chart illustrates SailPoint’s consistent ARR growth trajectory over the past nine quarters:

Similarly, SaaS ARR has shown strong momentum, growing from $455 million in Q2 2025 to $623 million in Q2 2026:

SailPoint maintained a healthy dollar-based net retention rate of 114%, demonstrating strong customer loyalty and expansion:

The company also reported significant improvement in profitability metrics. Adjusted operating margin reached 20.4% in Q2 2026, a substantial increase from 10.7% in Q2 2025, representing a 980 basis point improvement year-over-year.

As shown in the following chart, SailPoint has consistently improved its operating efficiency across multiple metrics:

Strategic Market Position

SailPoint’s presentation emphasized the growing complexity of identity security in modern enterprises. The company highlighted the exponential growth of various identity types, particularly machine identities and AI agents, which are creating new security challenges for organizations.

The following chart from SailPoint’s presentation illustrates this trend:

The company presented compelling market statistics that underscore the growing importance of identity security:

SailPoint positioned itself as a leader in addressing these challenges through its comprehensive identity security platform. The company’s strategy focuses on providing unified solutions that cover all identity types across the enterprise.

Industry Recognition and Competitive Positioning

SailPoint highlighted its industry leadership position, supported by recognition from major analyst firms. The company was named a Leader in Identity Governance and Administration by Gartner, KuppingerCole, and Frost & Sullivan.

The company differentiated its market position through what it calls an "Expanding Data Moat" and "Comprehensive Identity Security" approach, contrasting with competitors that focus more narrowly on access or privilege management:

SailPoint’s platform architecture reflects this comprehensive approach, integrating various identity security capabilities within a unified framework:

Customer Growth and Expansion

SailPoint reported strong growth in its customer base, particularly among larger customers. The number of customers with ARR exceeding $250,000 grew 27% year-over-year to 1,090, while customers with ARR over $1 million increased 48% to 185.

The company’s subscription revenue growth has been primarily fueled by SaaS, as illustrated in the following chart:

Forward-Looking Guidance

Based on its strong performance in the first half of fiscal 2026, SailPoint raised its full-year guidance across all key metrics. The company now expects:

• Total ARR of $1,105-$1,115 million, representing 26-27% year-over-year growth
• Total revenue of $1,052-$1,058 million, representing 22-23% year-over-year growth
• Adjusted operating margin of 16.7-17.2%

For Q3 2026, SailPoint expects:

• Total ARR of $1,027-$1,031 million, representing 26-27% year-over-year growth
• Total revenue of $269-$271 million, representing 14-15% year-over-year growth
• Adjusted operating margin of 15.7-16.2%

The company noted that approximately 90% of net new ARR in the second half of fiscal 2026 is expected to come from SaaS, further accelerating its transition to a SaaS-centric business model.

Strategic Growth Initiatives

Looking ahead, SailPoint outlined multiple levers to support long-term growth, including driving new customer acquisition, expanding relationships with existing customers, leveraging its partner network, expanding its global footprint, and continuing to innovate its product portfolio.

The company emphasized the critical role of identity security in addressing emerging cyber threats, particularly as organizations increasingly adopt AI technologies and face growing regulatory pressures. With its comprehensive platform approach and strong market position, SailPoint appears well-positioned to capitalize on these trends and maintain its growth momentum.

Full presentation:

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