Executive Summary

Q1 FY2026 delivered double-digit growth with total revenue of $230.0M (+23% YoY) and ARR of $925M (+30% YoY); adjusted operating income was $24M (10% margin) .
Results beat Wall Street on both revenue and EPS; adjusted EPS of $0.01 vs consensus loss, with the stock up ~12% pre-market on the print and raised FY outlook .
FY2026 guidance raised across revenue ($1.034–$1.044B from $1.025–$1.035B) and adjusted EPS ($0.16–$0.20 from $0.14–$0.18); Q2 revenue guided to $242–$244M and adjusted EPS $0.04–$0.05 .
Narrative continues to coalesce around AI-driven identity security (machine identities, AI agents), enterprise expansion, and strong SaaS momentum, with broadened go-to-market via partners and new regional capacity (e.g., Brazil) .

What Went Well and What Went Wrong

What Went Well

Subscription engine accelerating: subscription revenue reached $215M (+27% YoY), driving total revenue growth of +23% YoY .
Strategic progress with enterprise customers: customers >$1M ARR grew 62% YoY; management emphasized “identity becomes the hub of modern digital security strategy” and leadership in AI/data-driven platform extensibility .
Guidance was raised: FY2026 revenue, ARR, and adjusted EPS all increased vs prior guide, reinforcing momentum and execution confidence .

What Went Wrong

GAAP profitability contracted: GAAP operating loss widened to $(185)M (−80% margin) vs $(68)M (−36%) in Q1 FY2025 .
Operating cash flow usage: cash used in operating activities was $(97)M, including $37M interest and $88M for IPO-related items (equity award payouts, monitoring fees), impacting near-term cash profile .
Gross margin compression on a GAAP basis vs recent quarter; non-GAAP margins healthy but depend on adjustments (note widening GAAP net loss) .

Financial Results

GAAP/Reported Financials vs Prior Quarter

Metric	Q4 2025	Q1 2026
Revenue ($USD Millions)	$240.1	$230.0
GAAP Operating Income ($USD Millions)	$(30)	$(185)
GAAP Net Income ($USD Millions)	$(80.1)*	$(187.3)*
Diluted EPS - Continuing Ops ($USD)	$(4.289)*	$(0.422)*
Gross Profit Margin % (GAAP)	66.54%*	55.53%*

Values marked with * retrieved from S&P Global.

Non-GAAP Operating Metrics

Metric	Q4 2025	Q1 2026
Adjusted Income from Operations ($USD Millions)	$46 (19.0% margin)	$24 (10.0% margin)
Adjusted EPS (Diluted) ($USD)	Not disclosed in PR	$0.01
Adjusted Gross Profit & Margin	n/a	$177M; 76.3%

Segment/Revenue Mix

Metric	Q4 2025	Q1 2026
Total Revenue ($USD Millions)	$240	$230
Subscription Revenue ($USD Millions)	$224	$215

KPIs

KPI	Q4 2025	Q1 2026
Total ARR ($USD Millions)	$877	$925
SaaS ARR ($USD Millions)	$540	$574
Customers >$1M ARR (YoY change)	~+80% YoY	+62% YoY
Net Revenue Retention (NRR)	n/a	115% (call highlight)
Cash from Operations ($USD Millions)	$13.8*	$(97.8)

Values marked with * retrieved from S&P Global.

Results vs S&P Global Consensus (Q1 2026)

Metric	Consensus	Actual
Revenue ($USD Millions)	$225.16	$230.47
Primary EPS ($USD)	$(0.011)	$0.01
# of Estimates (Revenue/EPS)	13 / 13	13 / 13

Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Millions)	Q2 2026	n/a	$242–$244	New
Adjusted EPS ($USD)	Q2 2026	n/a	$0.04–$0.05	New
Total ARR ($USD Millions)	FY 2026	$1,075–$1,085	$1,095–$1,105	Raised
Total Revenue ($USD Millions)	FY 2026	$1,025–$1,035	$1,034–$1,044	Raised
Adjusted Income from Operations ($USD Millions)	FY 2026	$151–$156	$161–$166	Raised
Adjusted Operating Margin (%)	FY 2026	14.6–15.2	15.4–16.1	Raised
Adjusted EPS ($USD)	FY 2026	$0.14–$0.18	$0.16–$0.20	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2025)	Previous Mentions (Q3 2025)	Current Period (Q1 2026)	Trend
AI/machine identities, AI agents	Emphasis on platform innovation; strong SaaS momentum	n/a	Continued focus; launch plans for Agent Identity Security; AI/data-driven platform highlighted	Expanding product narrative
Enterprise expansion (>$1M ARR)	~80% YoY increase	n/a	+62% YoY; Fortune 500/Global 2000 adoption	Sustained large-enterprise growth
Regional capacity	n/a	n/a	AWS-based SaaS instance in Brazil announced near Q1 results	Capacity expansion
Partner ecosystem	n/a	n/a	Deloitte collaboration on AI agent management	Strengthening GTM/solutions
Profitability/FCF	Q4 adjusted op margin 19%	n/a	Adjusted op margin 10%; cash used in ops due to IPO-related items	Near-term headwind, longer-term improving non-GAAP

Management Commentary

“Enterprises are turning to SailPoint to manage both human and digital identities at the scale and speed required to stay ahead. Our ability to deliver both breadth and depth of identity security—on a platform that’s AI and data-driven and built for extensibility—combined with disciplined execution, fuel our consistent performance.” — Mark McClain, CEO .
CFO noted Q1 cash used in operating activities of $97M reflecting $37M interest and $88M items ending with the IPO (equity award payouts, monitoring fees), and reiterated guidance details on the call .

Q&A Highlights

Guidance clarifications: management reiterated Q2’26 revenue of $242–$244M and adjusted EPS $0.04–$0.05, and raised FY’26 ranges across ARR, revenue, and adjusted EPS .
Cash flow and IPO-related items: CFO explained outsized operating cash outflows tied to interest and non-recurring IPO items, providing context for near-term cash usage .
Customer expansion and retention: call highlights indicated strong NRR (~115%) and enterprise expansion drivers sustaining ARR growth .

Estimates Context

Q1 2026 consensus: revenue $225.16M; Primary EPS $(0.011). Actuals: revenue $230.47M and EPS $0.01; both were beats. # of estimates: 13 for revenue and EPS. Values retrieved from S&P Global.
Implication: Upward revisions likely for FY revenue, ARR, adjusted EPS given raised guide and demand signals; near-term GAAP losses may temper profitability estimate changes pending non-GAAP trajectory. Values retrieved from S&P Global.

Key Takeaways for Investors

Beat-and-raise quarter: revenue and EPS exceeded consensus; FY revenue and adjusted EPS raised — constructive for estimate and sentiment revisions .
Growth durability: ARR +30% YoY; SaaS ARR +39% YoY; large-enterprise expansion continues, supporting multi-year compounding .
Product/AI narrative strengthening: initiatives around machine identities and AI agents broaden TAM and differentiation; watch partner-driven adoption (e.g., Deloitte) .
Monitor margin mix: non-GAAP margins healthy, but GAAP losses widened; track path to GAAP profitability as IPO-related items roll off .
Cash flows inflection: Q1 operating cash outflows driven by one-time items; subsequent quarter delivered $50M CFO and $46M FCF, reinforcing underlying cash generation potential .
Near-term trading setup: positive revision cycle and AI/security tailwinds; stock reacted sharply to beat/raise — momentum supported while monitoring GAAP loss optics .
Medium-term thesis: identity-first platform leadership, AI/machine identity capabilities, and enterprise penetration underpin sustained ARR/SaaS growth and operating leverage .

Notes: Where marked with an asterisk (*), values retrieved from S&P Global.

SailPoint, Inc. (SAIL)·Q1 2026 Earnings Summary